The MEEA Policy Insider summarizes the latest state and federal policy activity and provides new resources to aid members in their outreach, education and advocacy initiatives.
For information about election results throughout the Midwest, check out our latest blog post: A Historic Tie, One House Flipped and Several Supermajorities: Election Results in the Midwest
In this issue:
- State Updates: IL / IN / KS / KY / MI / MN / MO / NE / ND / OH / SD / WI
- Federal Update
- New Resources & Publications
Legislative
The fall veto session took place between November 12-21. No energy efficiency related bills were considered. The legislature will reconvene for lame-duck session January 2-7, 2025, before the new legislature is sworn in on January 8, 2025.
Regulatory
The Illinois Commerce Commission (ICC) and facilitator hosted two more workshops in the second phase of the Future of Gas proceedings. On November 4, the ICC outlined their pilot project development process and speakers addressed residential and industrial electrification as a decarbonization strategy. On November 18, the workshop focused on commercial building electrification and both ComEd and Ameren provided updates on electrification and energy efficiency programs. The next workshop is scheduled for December 16. Meeting materials for all past workshops can be found here.
In September and October utilities presented their draft Energy Efficiency Plans for the 2026-29 cycle, and stakeholders began presenting feedback on the draft plans in October:
- October 29: Stakeholders shared feedback on ComEd’s draft Plan
- October 30: Stakeholders shared feedback on Peoples Gas & North Shore Gas’ draft plan
- November 6: Stakeholders shared feedback on Nicor Gas’ draft plan
Meeting materials for prior stakeholder advisory group (SAG) meetings, including the utility presentations and stakeholder feedback, can be found here. On December 3 and 4, SAG will convene for evaluators to present draft evaluation plans. Information about upcoming SAG meetings can be found here.
How to Get Involved
For more information about Illinois or to get more involved, contact Kit White.
Regulatory
The Indiana Utility Regulatory Commission (IURC) has an open investigation in Cause 46043 into whether a Distributed Energy Resource aggregator is a public utility. Proposed orders have been submitted and commented on but there is still no broad agreement among intervening parties.
The IURC is conducting a study of performance-based ratemaking, as required by 2023 legislation. A stakeholder survey will inform the commission’s consultant as they continue research and drafting for a future report.
CenterPoint filed its 2025-2027 Demand Side Management Plan in Cause 46100 at the end of July. The case is ongoing, and only the utility has filed testimony so far. The plan would save 1.1% of eligible (non-opt out) sales.
The current integrated resource planning (IRP) processes in Indiana are:
- Indiana-Michigan Power (AEP)– The IRP process has two remaining stakeholder meetings, which have not yet been scheduled but will be posted to their IRP page. The IRP due date was extended by the IURC to March 3, 2025.
- NIPSCO – The 5th stakeholder meeting for NIPSCO’s 2024 IRP was held on October 28. Meeting materials have been shared, and materials from previous meetings are available on their IRP page. The IRP is due on December 9.
- Indiana Municipal Power Agency (IMPA) – The Draft Director’s Report on IMPA’s 2023 IRP has been posted and the comment period on the draft has closed. The utility will submit its response to comments and the upcoming final Director’s Report will finalize the process.
Updates from the Commission on IRPs in Indiana will be posted to the IURC’s IRP page.
Legislative
Speaker-Elect Hutson has released committee chair appointments for the House.
How to Get Involved
For more information about Indiana or to get more involved, contact Greg Ehrendreich.
Regulatory
On October 31, the Kansas Corporation Commission issued its final order approving Evergy Kansas’s Energy Efficiency Rider (EER). These tariffs became effective November 1, 2024. You can review Evergy Kansas’s final EER tariff here, and track developments in Docket #25-EKCE-080-TAR. This process is a continuation of Evergy’s KEEIA 2024-2028 Demand Side Management Portfolio – which became effective following Commission order and approval under Docket #22-EKME-254-TAR. Evergy Kansas’s energy efficiency and demand response programs and incentives are now active, and you can view available programs here.
How to Get Involved
For more information about Kansas or to get more involved, contact Clara Stein.
Regulatory
Kentucky Power filed an application to expand its energy efficiency program in Case 2024-00115. The proposed portfolio, with a budget of $5.1 million for the 2025-2027 triennium, would expand the funds available for weatherization readiness in residential housing and begin offering heat pump incentives. The Joint Intervenors in the case (Mountain Association, Appalachian Citizens’ Law Center, Kentuckians for the Commonwealth and Kentucky Solar Energy Society) are generally supportive in their testimony and propose even further expansion of the existing programs. An evidentiary hearing will be held on December 19.
Duke Energy Kentucky is involved in integrated resource planning in Case 2024-00197. A public hearing will be held for cross-examination on December 10. Intervenor testimony has been filed in the case from Sierra Club and the same Joint Intervenors as above. Sierra’s testimony focuses on least-cost options for converting a generating unit, while the Joint comments call for increased consideration of demand-side management (DSM) options.
Duke Energy Kentucky has also filed to amend its ongoing DSM plan in Case 2024-00264. The case would expand the scope and adjust budgets across a suite of programs for the 2024-2025 biennium. There are no current intervenors in the case.
How to Get Involved
For more information about Kentucky or to get more involved, contact Greg Ehrendreich.
Legislative
In Michigan, Republicans flipped the state House, ending two years of a Democratic trifecta. Republicans are projected to win 58 of 110 seats in the House with several results still unofficial. Democrats remain in control of the Senate and Governor’s office. Lawmakers will continue to meet in November and December.
SB 237, which would extend tax credits to data centers to encourage companies to site them in Michigan, passed out of the House of Representatives on September 25. The legislation was previously passed by the Senate in May. HF 4906, which is virtually identical but focuses on the sales tax portion as opposed to the use tax portion, passed the Senate as amended on May 16. The bill was concurred by the House on November 13. Both bills go to the Senate for final approval.
The bills have gathered opposition from energy and environmental advocates who are concerned that an influx of data centers could jeopardize the state’s target of carbon-free electricity generation by 2040, which was enacted into law last year by the legislature. To qualify for the credits, a data center facility must attain one or more green building standards, such as BREEAM®, ENERGY STAR®, ISO 50001, LEED®, Green Globes® or UL 3223. The bill additionally states that data centers are encouraged (but not mandated) to take positive steps towards mitigating environmental impacts, including adoption of energy efficiency measures.
Sen. Singh and Sen. Outman have introduced a package of bills – SB 879, SB 880 and SB 881 – that would collectively amend the state’s processes around the state’s Low-Income Energy Assistance Fund. Among other changes, the legislation would allow the Commission to increase the funding factor for the assistance from $1 per ratepayer to $2, remove the $50 million cap, remove the provision that utilities could opt-out of collecting the funding factor and institute a requirement that the Department of Health and Human Services submit an annual report on the disbursement of funds. SB 880 and 881 passed the Senate on June 26 and were voted out of committee in the House on November 13.
Regulatory
The Michigan Public Service Commission (MPSC) released its annual report on energy waste reduction programs. The report shows that Michigan utilities spent more than $550 million on energy efficiency programs in 2023 ($386 million on electric; $165 million on gas). Those programs resulted in savings of $1.4 billion over the 12-year lifecycle of measures, meaning each dollar spent on programs led to $2.54 in savings.
The MPSC hosted a day-long meeting on October 17 to outline Staff’s straw proposal on new requirements and planning parameters for integrated resource plans as well as proposed requirements for the new clean energy plans. This updated guidance is in response to the passage of the 2023 clean energy legislation. Public comments on these drafts were due by November 7, though Staff said they would consider late comments. The proposed requirements can be found here:
- Draft Revised Integrated Resource Plan Filing Requirements
- Draft Michigan Integrated Resource Planning Parameters
- Clean Energy Plan Filing Requirements for Rate-Regulated Electric Utilities
- Draft Clean Energy Plan Filing Requirements for Municipalities, Electric Cooperatives, and Alternative Energy Suppliers
The MPSC has announced that it will resume its Affordability, Alignment and Assistance subcommittee in January 2025. The group will work to make recommendations on percentage of income payment plans and low-income rates. The group will meet the first Tuesday of each month at 12 p.m. CT. Interested parties can sign up for meeting invites here.
How to Get Involved
For more information about Michigan or to get more involved, contact Maddie Wazowicz.
Legislative
Control of Minnesota’s House of Representatives is uncertain as the initial results have the parties split evenly with 67 seats each. There are at least two races, however, with margins likely to be close enough for a recount if the losing candidate requests one when results are certified on November 21. Both parties have named their leadership teams including speaker-designates, with Democrats selecting Melissa Hortman and Republicans picking Lisa Demuth. It remains to be seen how the two parties will work out a power-sharing agreement. This tie in the House has occurred once in the state’s history in 1979.
Minnesota did not hold general elections for the state Senate this year, but there was a special election for a vacant seat won by the Democratic candidate, meaning the Democrats maintain a narrow one seat Senate majority, 34 to 33.
Regulatory
On October 2, Xcel Energy announced a settlement with intervenors for its integrated resource plan (IRP) in docket 24-67. On October 25, Xcel submitted its comments and evidentiary support for the settlement agreement. Parties now have time to respond to Xcel’s comments, with the Public Utility Commission planning a final decision on the IRP in the first quarter of 2025.
The Commission issued its orders for the utilities’ integrated distribution plans (IDPs). The IDPs outline the utilities’ goals in maintaining and enhancing the resiliency of the electrical grid. The utilities are planning for increased deployment and usage of distributed energy resources and non-wires alternatives, which include energy efficiency, demand response and beneficial electrification. The final orders are linked in the following dockets:
- Xcel, docket M-23-452
- Minnesota Power, docket M-23-258
- Otter Tail, docket M-23-380
- Dakota Electric, docket M-23-420
How to Get Involved
For more information about Minnesota or to get more involved, contact Maddie Wazowicz.
Regulatory
On November 14, the Missouri Public Service Commission (PSC) approved Ameren Missouri’s amended MEEIA Cycle 4 plan in docket EO-2023-0136. Ameren and other parties filed a Non-Unanimous Stipulation and Agreement on October 30, outlining a total budget of $125.03 million and a more limited set of programs than their previous application.
On September 27, parties filed a Non-Unanimous Stipulation and Agreement on Evergy Missouri’s MEEIA Cycle 4 plan in dockets EO-2023-0369 and EO-2023-0370. The agreement provides for a $69.5 million total program budget. Although PSC Staff were not signatories to the agreement, they did not object to the filing in their response. Evergy filed its tariff revision on October 15, as directed by the Commission. Most recently, the Commission ordered that Evergy respond to Staff’s concerns on the updated tariffs by November 26, including certain values unable to be verified by Staff.
How to Get Involved
For more information about Missouri or to get more involved, contact Natalie Newman.
Regulatory
The Nebraska Power Association (NPA) filed and published the 2024 Load and Capability Report with the Nebraska Power Review Board (NPRB). This report is required by statute to be filed annually (Nebraska Revised Statute 70-1024 and 70-1025) and contains information on long-range power supply across the state’s electric utility providers. The report includes information on electric utilities decarbonization goals, energy efficiency and demand response programs, and resource planning filings. Read the meeting minutes from the NPA’s presentation of the 2024 Load and Capability Report to the NPRB on September 20 and the Board’s subsequent acceptance of the report here.
Omaha Public Power District’s (OPPD) review of Strategic Directive 7 (SD7), which guides OPPD’s sustainability goals, has ended. After a six-month process, in which MEEA submitted three rounds of comments, the Board of Directors approved revisions to SD7 language. Those revisions can be found here and include language recognizing the importance of environmental justice in OPPD’s decision making process and the value of energy efficiency efforts. However, under the Systems Committee’s recommendation, the Board determined that interim metrics should be determined at the conclusion of the OPPD’s Integrated Resource Planning Process, which is set to begin in early 2025.
How to Get Involved
For more information about Nebraska or to get more involved, contact Clara Stein.
Executive
North Dakota elected a new Republican governor, U.S. House Representative Kelly Armstrong on November 5. Current Republican Governor Doug Burgum did not seek a third term.
Regulatory
North Dakota’s Public Service Commission (PSC) is an elected body. On November 5, the Republican Chairman of the PSC, Randy Christman, was re-elected for another term. Current Commissioner Julie Fedorchak, also a Republican, won the U.S. House seat vacated by Governor-Elect Kelly Armstrong, meaning Armstrong will get to appoint a new Commissioner to fill this vacancy.
How to Get Involved
For more information about North Dakota or to get more involved, contact Kit White.
Legislative
HB79 was heard in the Senate Energy & Public Utilities on November 19. The bill would allow utilities to establish limited voluntary energy efficiency programs. The bill would allow utility-run residential and small commercial energy efficiency programs, with an automatic opt-out for mercantile and industrial customers. It would also allow residential and business customers multiple opportunities to opt out. The vote out of the House was close and it is uncertain how the Senate will lean.
Regulatory
First Energy applied for a $72.1 million / 4-year energy efficiency and demand response program as part of its Standard Service Offer case in docket 23-0301-EL-SSO. The Commission’s Order of May 15 approved only low-income and energy education programs and directed the development of a smart thermostat demand response program. In response to the petition of five separate parties, including the utility, the Public Utilities Commission of Ohio granted an order for a rehearing on limited specific matters in the case. First Energy filed a Notice of Withdrawal of the application on October 29 in response to an Ohio Supreme Court ruling in the Moraine Wind case regarding the legality of an order granting a rehearing on limited purposes.
Duke Energy Ohio has applied for a $28 million annual voluntary energy efficiency program for 2024-2026 in docket 24-0045-EL-POR. The case is ongoing. The administrative law judge filing from October 11 rescheduled the evidentiary hearing for “January 29, 2024” without correction.
How to Get Involved
For more information about Ohio or to get more involved, contact Greg Ehrendreich.
Regulatory
South Dakota’s Public Utilities Commission (PUC) is an elected body. One of the three seats on the PUC was up for election on November 5. Incumbent Republican Kristie Fiegen was re-elected Commissioner. Republicans hold all three seats on the South Dakota PUC.
The South Dakota PUC announced that they will host a large electric load education session on November 26 at 9 a.m. CT. The intention of this convening is for the PUC commissioners to learn about inquiries SD utilities are receiving regarding data centers, crypto mining facilities and other potential large load entities. Commissioners will moderate this discussion and have invited representatives from investor-owned utilities (Black Hills Energy, Montana-Dakota Utilities, MidAmerican Energy, NorthWestern Energy, Otter Tail Power Co., Xcel Energy), electric cooperatives (Basin Electric Power Cooperative, East River Electric Power Cooperative, Rushmore Electric Power Cooperative), energy service providers, region transmission organizations (Midcontinent Independent Systems Operator and Southwest Power Pool), data centers and SDN Communications. The session will be audio livestreamed through the PUC website. Recordings will be available following the meeting.
How to Get Involved
For more information about North Dakota or to get more involved, contact Kit White.
Legislative
In its first election with newly drawn state legislative maps, Wisconsin Republicans maintained control of the state Assembly, albeit with a smaller majority than last time around. The Wisconsin Supreme Court struck down the previous maps as unconstitutional last year and ordered lawmakers to draw new ones. With new, less gerrymandered maps, the unofficial results show Democrats decreased the Republican majority in the state Assembly from 64-35 to 52-44 and from 22-10 to 18-15 in the Senate.
Regulatory
Commission Staff have opened an additional commenting opportunity in the Focus on Energy Quadrennial Planning Process IV docket. Staff are asking for comments on a method for calculating avoided transmission and distribution costs for the purpose of evaluating Focus on Energy. This is in response to the Commission’s November 2022 order where Commissioners ordered the Evaluation Working Group (EWG) to present an alternative method for calculating avoided electric transmission and distribution costs. The memo outlines a framework the EWG established in coordination with the Regulatory Assistance Project. Comments are due in docket 5-FE-104 by December 9.
Commissioners met on October 10 to rule on two potential alternative proposals from Focus on Energy staff in docket 5-FE-104. On attribution, the Wisconsin Public Service Commission (WPSC) decided to allow full attribution to Focus on Energy in instances where the program co-funds with Home Energy Rebates. On beneficial electrification, the WPSC established a more expansive definition of customer costs and a definition of beneficial electrification that reduces customer costs, greenhouse gases and source energy. Additionally, the Commission passed on transitioning program goals to MMBtus. Rather, the WPSC elected to keep kwh and therm goals but reduced minimum requirements to achieving 70% of fuel-specific goals, allowing for enhanced flexibility.
How to Get Involved
For more information about Wisconsin or to get more involved, contact Maddie Wazowicz.
Executive
President-Elect Donald Trump is rapidly announcing his picks for his administration. Trump has named Chris Wright as his nominee for the Secretary of Energy. Wright was most recently the CEO of Liberty Energy, a Colorado-based fracking company. Trump named former North Dakota Governor Doug Burgum as his pick to lead the Department of the Interior. Burgum will also head the newly formed Council on National Energy, which will aim to reduce barriers to permitting and producing energy in America. Trump also announced Lee Zeldin as his pick to be the Administrator of the Environmental Protection Agency. Zeldin most recently served New York as a member of the U.S. House of Representatives.
On November 5, the Federal Energy Regulatory Commission (FERC) issued an Order accepting PJM’s proposed tariff revisions eliminating energy efficiency resources from its capacity market. The Order, in response to PJM’s September 6 proposal, is effective immediately but will not eliminate energy efficiency resources from PJM’s capacity market until the 2026/2027 delivery year.
PJM successfully argued that it can and should account for energy efficiency in its load forecast, rather than on the supply side of the curve in the capacity market. PJM asserted that including energy efficiency in its load forecast does reduce the wholesale capacity market prices thus load-serving entities and their customers already benefit from energy efficiency with lower capacity bills resulting from lower energy consumption. PJM also contended that there is no proof that capacity payments for energy efficiency resources actually lead to reductions in energy consumption that weren’t already occurring independently by consumer choice.
Over 30 organizations intervened and filed protests against PJM’s proposal including the Illinois Attorney General’s Office, the Illinois Municipal Electric Agency, National Resources Defense Council, the Environmental Law & Policy Center and Illinois Citizen’s Utility Board. The intervening public interest organizations argued, among other things, that PJM’s load forecasting methodology does not adequately account for the reduction in load from energy efficiency and eliminating energy efficiency from the capacity market will lead to increased generation and higher rates for customers.
MEEA will continue tracking docket ER24-2995 in the event that any parties appeal FERC’s Order.
MEEA has more information about Regional Transmission Organizations here:
- Blog Posts:
- Webinars:
On November 14, the Biden Administration revealed the latest batch of awards for Energy Efficiency and Conservation Block Grant funds. The Midwest winners include:
- Detroit, MI – the city will use funds to provide technical assistance for owners of affordable housing units, community organizations and places of worship to help them participate in the city’s benchmarking program
- Milwaukee, WI – the city will establish an emissions forecasting dashboard and will fund energy audits and energy efficiency retrofits of city-owned buildings
- Indianapolis, IN – the city will launch a job training program to audit municipal buildings in coordination with the local Industrial Assessment Center
How to Get Involved
Information about a number of federal funding opportunities can be found on the Funding Roundup page of MEEA’s website.
For more information about federal matters or to get more involved, contact Maddie Wazowicz.
Recent Publications:
Recent Testimony and Comments:
- MEEA Comments on OPPD’s Strategic Directive 7 Energy Burden
- MEEA Comments on ICC Future of Gas Phase I Draft Report
- MEEA Comments on Wisconsin Quad Planning Process IV – Underserved Customers
- MEEA Comments on OPPD's Strategic Directive 7 Annual Review
- MEEA Comments on Savings Attribution for Stacking of Benefits
Recent Blogs:
- Over $1 Billion in Federal Funds Flow into the Midwest: Energy Efficiency's Role in CPRG Implementation Awards
- Energy Markets 101: Regional Transmission Organizations, Independent Systems Operators and Energy Efficiency
- Energy Markets 102: Energy Efficiency Participation in PJM’s Capacity Market
- New Benchmarking Ordinance Advances Milwaukee’s Climate Goals
- Insights from ACEEE’s Summer Study on Energy Efficiency in Buildings