MEEA Policy Insider - September 2023

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.

In this issue:

 

MEEA Policy Steering Committee

Are you interested in learning more about energy efficiency policy and getting involved in MEEA’s policy work? Join the Policy Steering Committee! You will attend and engage in our quarterly meetings, with a direct line to our staff policy experts.

Please reach out to Policy Associate Christian Koch with your interest or questions. 

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Legislative

Last month, Governor Pritzker issued vetoes and amendatory vetoes of four bills, including an amendatory veto of HB 3445, striking only the portion of the bill that would have granted downstate utilities the “right of first refusal” for construction of new transmission lines. Subsequently, members of the Illinois legislature are now preparing for its fall veto session, which will convene October 24-26 and November 7-9.

Regulatory

The Illinois Commerce Commission (ICC) held its most recent Equitable Energy Upgrade Program (EEUP) meeting on September 18. This meeting, which comes two months after the release of the EEUP’s draft rule, covered unresolved topics concerning trade ally partnerships, workforce development and eligibility for low-to-moderate income customers. The next EEUP workshop is scheduled for October 2 and is expected to focus on coupling EEUP with solar energy installations. The meeting on October 2 will be the final EEUP workshop before the ICC begins a series of EEUP ‘page turning sessions’ in which the ICC will conduct a line-item review of the EEUP rules alongside workshop stakeholders.

During its meeting on August 28, members of the Illinois Energy Efficiency Stakeholder Advisory Group’s (SAG) Policy Manual Version 3.0 Subcommittee agreed to an updated version of the SAG Policy Manual. New updates to the Policy Manual include designing a ‘one-stop-shop’ program for income-qualified multifamily housing retrofits, equity and affordability metrics and reporting principles for utilities’ diverse contracting and equity and affordability initiatives.

How to Get Involved

For more information about Illinois or to get more involved, contact Christian Koch. 

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Legislative

The Indiana legislature has adjourned Sine Die. The Energy, Utilities, and Telecommunications Interim Study Committee met on September 14, with discussions centered on annual industry reports and reliability forecasts and nuclear feasibility studies.

Regulatory

The Indiana Utility Regulatory Commission (IURC) has scheduled the 2023 IRP Contemporary Issues Technical Conference, for Friday, October 20, 2023, from 9 a.m. – 4 p.m. ET, meeting virtually. Email Beth Heline to be added to the distribution list for updates.

2023 Integrated Resource Plans (IRPs) are expected from:

Updates from the Commission on IRPs in Indiana will be posted to the IURC’s IRP page.

How to Get Involved

For more information about Indiana or to get more involved, contact Greg Ehrendreich. 

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Regulatory

The Iowa Utilities Board (IUB) has hired an independent consultant to guide the review process required by HF 617, which was enacted into law earlier this year. This legislation requires the IUB to lead an independent review of current Iowa Code provisions and utility ratemaking procedures. The goal is to evaluate cost-effectiveness and ensure utility services are safe, adequate, reliable and affordable.

Individuals and organizations interested in participating and providing input were asked to submit letters of intent to participate to the IUB’s docket, identified as NOI-2023-0001, by July 31. As part of this process, the IUB is holding policy charrettes and offering the opportunity to submit comments before and after each charrette. MEEA submitted comments prior to both the first charette (available here) and second charette (available here).

Additional charrettes are scheduled to take place later this year. For more details, please click here.

Iowa investor-owned utilities’ Energy Efficiency Portfolio (EEP) planning process is currently underway, with IOUs filing their new five-year plans (2024-2028). The IUB has set procedural schedules and public hearings for all IOUs.

  • Interstate Power and Light (IPL) Company, a subsidiary of Alliant Energy, filed its plan on November 1, 2022, in docket EEP-2022-0150. A public hearing took place on June 8, 2023, and a transcript of the hearing can be found here. A briefing schedule was issued, with intervenors filing briefs on July 6, though reply briefs were not scheduled. Iowa’s Office of Consumer Advocate (OCA) appealed IPL’s proposed decision, raising concerns over IPL’s proposed increase in interruptible credits. Final decisions will be determined by the IUB.
  • MidAmerican Energy filed its plan on February 1 in docket EEP-2022-0156. Although a public hearing had been slated for August 24, all parties reached a consensus that a hearing was unnecessary. Nevertheless, parties retained the option to submit initial briefs by September 8 and reply briefs by September 22. Iowa’s OCA filed a reply brief urging the IUB to accept MidAmerican Energy’s non-residential year-round curtailment credit of $60/kW.
  • Black Hills Energy filed its plan on March 31 in docket EEP-2022-0225, with a tentative public hearing set for October 17.

To be added to the EPP stakeholder list and receive updates and meeting information, please email Jennifer Easler.

How to Get Involved

For more information about Iowa or to get more involved, contact Arlinda Bajrami.

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Regulatory

On September 1, the Kansas Corporation Commission (KCC) delivered an order approving Evergy’s Kansas Energy Efficiency Investment Act (KEEIA) plan filing, which confirmed the utility’s 2023-2026 Demand-Side Management (DSM) Portfolio and associated cost recovery mechanisms. Commissioners approved the “Initial Program Settlement” and “Initial Financial Settlement” with certain modifications and conditions, rather than the more recently discussed and less robust “Alternative Settlement.” For a more detailed look at the order and approved programs, read our recent blog post.

The application was initially filed in December 2021, with the proposal including nine programs — four residential, four business and one pilot research program. The full docket can be found here.

On September 13, the Senate Confirmation Oversight Committee voted to approve the appointment of Annie Kuether to the KCC. Prior to her appointment by Governor Kelly, Kuether represented central Topeka in the Kansas House as a Democratic legislator from 1997 to 2022, including two decades as the highest-ranking Democrat on the Energy, Utilities and Telecommunications Committee. Commissioner Kuether replaces Commissioner Susan Duffy, whose term expired in March 2023.

The Oversight Committee chose not to vote on Governor Kelly's reappointment of current KCC commissioner Andrew French, whose term expires in March 2024, and instead plan to vote in January during the regular legislative session.

The update to Evergy’s Five Year Capital Investment Plan was filed under docket 19-KCPE-096-CPL. Evergy released its CIP for Kansas Central and Kansas Metro regions in February 2023 and its 2023 Integrated Resource Plan annual update in June 2023. After months of proceedings and comments, KCC staff released their initial Report and Recommendations on July 10. Although staff noted their concern with the continued growth of the plan to $7.6 billion, they concluded that Evergy customers would likely see only moderate rate increases and that spending would be below the average of other electric-only investor-owned utilities. Staff published additional comments on August 31, recommending the Commission find that the 2023 IRP Filing meets the required framework.

How to Get Involved

For more information about Kansas or to get more involved, contact Natalie Newman. 

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Legislative

The 2023 Regular Session of the Kentucky General Assembly has adjourned Sine Die. The Interim Committee on Natural Resources and Energy met again in August and will continue to do so monthly through November, per previous schedules. The August meeting included discussion of the energy transition happening in PJM territory.

Regulatory

LG&E and KU, including its subsidiary ODP, are hosting a series of Demand-Side Management (DSM) Advisory Group meetings. These are intended to provide a platform for stakeholders to discuss EE and DSM initiatives for existing and new program offerings. Additional details, previous meeting notes and contact information for participating in the group can be found here.

How to Get Involved

For more information about Kentucky or to get more involved, contact Greg Ehrendreich. 

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Legislative

Senate Democrats continue to work on their energy package. Since coming back from a summer break, lawmakers have held several hearings and have released new substitute bills.

The package includes the following seven bills:

  • SB271 (Sen. Geiss) - amends the state’s renewable standard by mandating that electric utilities reach 100% renewable generation by 2035.
    • The substitute version of this bill is expected to adjust definitions and timelines, requiring electric utilities to reach 60% renewable generation by 2033 and 100% carbon-free by 2040.
  • SB272 (Sen. Shink) - expands the purview of the Michigan Public Service Commission (MPSC) by allowing commissioners to consider climate, health, equity and affordability when analyzing utility plans.
    • SB502 has been substituted for SB272. This was mainly a technical change. SB272 amended only one section of code, whereas SB502 amends several sections.
  • SB273 (Sen. Singh) - expands the existing energy waste reduction (EWR) framework by adding municipal and cooperative utilities back into the EWR standard and mandating that electric utilities now reach 2% in annual savings.
    • The substitute version of this bill is expected to lower the mandate for electric utilities to 1.5%, with an incentive structure to encourage utilities to reach 2%. The revised bill enables utilities to run efficient electrification programs, includes mandated levels of spending on low-income EWR programs and increases the gas EWR standard to 1.0% from 0.75%.
  • SB274 (Sen. Shink) - requires the development of a plan to reduce greenhouse gas emissions from buildings.
  • SB275 (Sen. Singh) - establishes a standard to reduce the carbon intensity of transportation fuels.
  • SB276 (Sen. Bayer) - requires utilities to retire coal-fired generation by preventing them from including the resource in their integrated resource planning process.
  • SB277 (Sen. McDonald Rivet) - allows farmers to lease land for solar energy production.

The House also has an energy package. Much of the attention has been on the Senate versions, as that chamber is moving more quickly to advance their bills. The House package includes the following three bills:

  • HB4759 (Rep. Coffia) - amends the state’s renewable standard by mandating that electric utilities reach 60% renewable generation by 2030 and 100% carbon-free generation by 2035, excluding hydrogen, nuclear and some other resources.
  • HB4760 (Rep. Pohutsky) - expands the purview of the MPSC by allowing commissioners to consider climate, health, equity and affordability when analyzing utility plans.
  • HB4761 (Rep. Aiyash) - expands the existing EWR framework by mandating that electric utilities now reach 2.0% in annual savings and natural gas utilities reach 1.5%. The bill also amends EWR filing timelines, prioritizes EWR programs for low-income customers and legalizes electrification within the EWR program.

 

Regulatory

The Financial Incentives and Disincentives workgroup is hosting a virtual kick-off meeting on October 10 from 1:00 p.m. - 4:00 p.m. CT. The group will evaluate financial incentives and disincentives to better align utility financial performance with distribution grid performance. The first meeting will focus on the straw proposal from the MPSC’s August order.

Consumers Energy filed its 2024-25 EWR plan in docket U-21321. Consumers sets a target of 1.90% annual electric savings and 1.00% annual gas savings, planning to spend $190.9 million in 2024 and $180.0 million in 2025 on the electric side and $95 million annually on the gas side. These numbers are similar to Consumers’ previous plan numbers, which can be seen its 2022 reconciliation filing in docket U-21312.

DTE filed its 2024-25 EWR plan in docket U-21322. DTE sets a target of 2.00% annual electric savings and 1.05% annual gas savings, planning to spend $197.9 million in 2024 and $209.4 million in 2025 on the electric side and $50.6 million in 2024 and $50.7 million in 2025 on the gas side. The plan increases the company’s spending on low-income programs and maintains a level of targeted energy savings similar to what DTE achieved in 2022, as evidenced by the recent release of its 2022 reconciliation filing in docket U-21313.

How to Get Involved

For more information about Michigan or to get more involved, contact Maddie Wazowicz. 

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Regulatory

The Public Utilities Commission is requesting comments in docket 21-565 on a proposed structure to determine the scope of natural gas integrated resource plans (IRPs). In February 2023, the PUC ordered that the state’s IRP process be expanded to include gas utilities. Since that order, the PUC has been holding an ongoing workshop series to determine the parameters for gas IRPs. The PUC is now asking for comments on a redlined proposal originally submitted by the Consumers Utility Board. Comments are due October 24, with reply comments due November 9.

The state’s investor-owned utilities have submitted their triennial Conservation Improvement Program (CIP) plans. Plans can be found in the following dockets:

  • Xcel Energy: 23-92
  • CenterPoint Energy: 23-95
  • Minnesota Power: 23-93
  • Minnesota Energy Resources Corporation: 23-98
  • Otter Tail Power Company: 23-94

The Department of Commerce adjusted the timeline for the CIP plans on September 15. Staff’s proposed decisions are now due on October 23, with comments on these proposals due November 6. The Deputy Commissioner’s final decisions on the plans are now expected December 1.

CenterPoint has submitted its first Natural Gas Innovation Plan in docket 21-566. The plan details proposed pilots, research and development programs, budgets, energy savings, job impacts and more. Among the eighteen pilots are a few that touch on efficiency, including:

  • Residential deep energy retrofits and electric air source heat pumps – would fund significant energy efficiency improvements and install heat pumps with gas backup.
  • Residential and commercial gas heat pumps - would fund the development and testing of gas heat pumps.
  • Small/medium business greenhouse gas (GHG) audit and industrial and large commercial GHG audit – would expand CIP offerings to include additional GHG-reducing opportunities.

The plan also includes seven research and development projects. These include testing marketing and outreach strategies for weatherization blitzes and testing a multi-prong approach to integrate high-performing building envelopes in new commercial construction.

Xcel has announced a stakeholder meeting to begin discussing its first Natural Gas Innovation Plan. The workshop is on October 11 from 1 p.m. – 3 p.m. CT. More information can be found in docket 21-566.

How to Get Involved

For more information about Minnesota or to get more involved, contact Maddie Wazowicz.

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Regulatory

On August 23, the Missouri Public Service Commission approved the Plan Year 2024 Stipulation for Ameren Missouri’s Missouri Energy Efficiency Investment Act (MEEIA) Cycle 3 extension in an order, which took effect on September 2.

Initially, Ameren Missouri filed its Cycle 4 MEEIA plan on March 27, at case number EO-2023-0136.  However, discussions between Ameren Missouri, PSC Staff, the Office of Public Counsel and other parties produced a plan that continues Ameren’s current MEEIA Plan into 2024.

On August 16, the involved parties released a joint status report announcing a Stipulation and Settlement to extend the current MEEIA 3 Plan for 2024, which was filed in docket EO-2018-0211 on August 3 and was approved by the Commission in an order on August 23. On September 25, the parties filed a Joint Status Report and Joint Motion to Adopt Procedural Schedule, which includes details on additional workshops and an Amended MEEIA 4 Application date of January 16, 2024.

Evergy Missouri’s MEEIA extension is expected soon, and a Prudence Review was initiated by PSC staff in both Evergy territories – Missouri Metro and Missouri West – in June. We will continue to monitor the progress of these filings.

Last year, the Missouri PSC approved time-of-use (TOU) rates as the default for the state’s electric investor-owned utilities. The mandatory TOU pricing will only apply to residential customers of these regulated utilities who have smart meters, allowing for the usage. All Evergy Missouri customers will be switched to TOU rates this fall; the new rate structure will take effect next year in the Ameren Missouri and Liberty service territories, with staggered implementation. Evergy has begun their communication campaign regarding the TOU rate changes. To assist in educational efforts, the PSC developed responses to Frequently Asked Questions for Evergy residential customers. We will continue to follow this rate rollout as it develops.

Through Evergy Missouri’s MEEIA Cycle 2 plan 2023 extension year, Evergy identified relevant information, potential partners, outside funding streams and other considerations for a feasibility and vulnerability study regarding an Urban Heat Island Mitigation program for its next MEEIA application. Evergy has now contracted the Mid-America Regional Council (MARC) and other experts on program design. A draft proposal for the program - Kansas City Urban Heat Island Analysis and Mitigation Proposal - was shared with previously involved stakeholders in the Urban Heat Island Work Group for their review and feedback in preparation for submission to the Missouri Public Service Commission. The work group most recently met on August 17 to discuss the pilot program and specific community engagement plans and set an intention to hold two more meetings before the end of the year. Please reach out to Ryan Umberger at MARC if you are interested in attending.

How to Get Involved

For more information about Missouri or to get more involved, contact Natalie Newman. 

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Regulatory

Nebraska Public Power District (NPPD), Nebraska’s largest electric utility, received approval for their updated IRP from their board and the Western Area Power Administration on September 14. You can view NPPD’s 2023 IRP here.

Executive

The Nebraska Department of Environment and Energy (NDEE) is set to receive a $3 million grant through the Environmental Protection Agency (EPA) Climate Pollution Reduction Grant (CPRG) program. This grant will aid NDEE in developing a Priority Climate Action Plan by March 1, 2024, followed by a Comprehensive Climate Action Plan due in late summer of 2025. Over the next two years, NDEE will engage extensively with stakeholder groups and the public to gather ideas and comments. Proposed workgroups include agriculture, energy production, transportation, buildings, housing and communities and energy-intensive industries. To participate in a stakeholder workgroup and assist with the program, contact NDEE at NDEE.climatepollution@nebraska.gov. For more details, visit the NDEE website.

Additionally, on August 29, the City of Omaha accepted a $1 million grant through the CPRG program to support the city’s climate action, resilience and mitigation plan. For more information on the CPRG program, visit EPA's website.

How to Get Involved

For more information about Nebraska or to get more involved, contact Arlinda Bajrami. 

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Legislative

Energy efficiency bill HB79 would allow utilities to establish limited voluntary EE programs. The fourth hearing on the bill was held on June 21, with both proponent and opponent testimony, and the bill was passed out of committee. It is expected to be put on the House floor for a vote as soon as the House returns to session, predicted to be the second week of October.

Regulatory

Maureen Willis, acting legal director of the Ohio Office of Consumers’ Counsel (OCC) has been tapped to succeed Bruce Weston as the head of that agency. She has been at the OCC since 1982. She will begin her new position on October 1.

The Public Utilities Commission of Ohio (PUCO) granted an application for rehearing in the Columbia Gas of Ohio rate case for the limited purpose of further consideration. However, the stipulated agreement was previously modified and approved, cutting all energy efficiency except for $14 million for low-income energy efficiency programs. The case is ongoing.

AEP Ohio filed an energy efficiency plan as part of its Standard Service Offer approval in 23-0023-EL-SSO. The energy efficiency plan was negotiated away in the settlement agreement, which retains only $12M for low-income weatherization.

How to Get Involved

For more information about Ohio or to get more involved, contact Greg Ehrendreich. 

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Regulatory

On September 26, the South Dakota Public Utilities Commission will hold a public hearing on Otter Tail Power Company’s application for approval of administrative tariff changes in rate schedules (case EL23-022). Otter Tail proposes to close the rates that use Real Time Pricing and System Marginal Energy Pricing to new customers. Otter Tail states this change is necessary to allow time to create new methodology for Real Time Pricing and System Marginal Energy Pricing. If approved, the tariff changes will go into effect October 1, 2023.

How to Get Involved

For more information about South Dakota or to get more involved, contact Christian Koch. 

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Legislative

Governor Evers called a special session on September 20 for the Legislature to address state workforce issues, but Republican legislative leaders gaveled in and out within one minute, rejecting Evers’ request.

Little legislation related to energy has been introduced to date, but three bills preventing the restriction of fuel sources passed both chambers and were subsequently vetoed by Governor Evers on August 4.

  • SB49/AB45 would bar municipalities from restricting certain fuel types, effectively preventing jurisdictions from banning the use or installation of natural gas infrastructure.
  • SB212/AB142 would prevent state agencies or local governments from restricting the sale or use of motor vehicles based on the energy source used to power the motor vehicle.
  • SB213/AB141 would restrict state agencies or local governments from restricting the sale or use of devices based on the energy source used to power the device.

On September 14, the Senate overrode the veto of SB49/AB45. The bill now goes to the Assembly where the chamber will also vote to override the veto. It is unclear if the Legislature will attempt to override the vetoes of the other two bills.

Regulatory

The Public Service Commission issued a memo on cost-effectiveness options for the Focus on Energy Quadrennial IV Plan. The memo covers options on the starting point market-based carbon value, the market-based carbon value escalation rate and a low-income benefits adder. Comments on the memo were due by September 11, with a decision from the Commission anticipated soon. MEEA submitted comments, which are available here. Additional memos are expected in this docket to resolve other details related to the Quad Plan.

How to Get Involved

For more information about Wisconsin or to get more involved, contact Maddie Wazowicz. 

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Legislative

Only days before the end of the federal fiscal year on September 30, appropriation bills needed to fund the federal government’s operation remain unfinished at time of publishing. With the Senate (and White House) controlled by Democrats and the House controlled by Republicans, compromise will be necessary to move legislation forward.  It is likely that the federal government will shut down as of October 1, with only critical functions continuing. Much of the federal workforce, including the vast majority of employees at the Department of Energy and EPA, would be furloughed, but work on some programs funded by the Inflation Reduction Act, which provided multi-year funding, may not be affected.

Earlier work on FY 2024 appropriation bills highlighted significant differences between energy efficiency funding levels proposed by the Democratic-controlled Senate and GOP-controlled House.

Executive

Federal agencies continue to roll out programs funded under the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA). Should the federal government shut down on October 1, many grant award announcements and grant application deadlines will be delayed.

On September 20, the Biden Administration opened competition for the CPRG program, with $4.6 billion made available by the EPA to implement climate pollution reduction plans developed by states and metro areas. Those plans were seeded by $250 million in planning funds awarded earlier this year. The CPRG competitive grants will be awarded in two separate programs, a “general” competition for states and metro areas, and a separate competition for Tribes and territories, with deadlines of April 1, 2024, and May 1, 2024, respectively. Awards are expected to be announced for the general competition in Fall 2024 and for the Tribes/territories competition in Winter 2024-25. US EPA has emphasized that it will prioritize awards for “measures that achieve the greatest amount of GHG reductions.”

The deadline for state energy offices to apply for the Home Energy Efficiency Contractor Training Grants has been extended to January 31, 2024. DOE will award $150 million in formula grants to states and up to $40 million in competitive grants to educate, test and certify contractors to perform residential energy efficiency and electrification upgrades like those funded by the Home Energy Rebates program. State energy offices must apply to DOE to receive this funding (even for the formula grants), and MEEA can provide assistance with applications. Please contact us for more information.

The US Department of Energy has released guidance to states and territories on how to design and implement the Home Efficiency Rebates and the Home Electrification and Appliance Rebates programs created by the Inflation Reduction Act. Nationwide, the IRA allocated $8.8 billion to these programs, split approximately 50/50 between the two programs, with states in the Midwest receiving between $74 million (North Dakota) and $264 million (Illinois), depending on population. States have until January 31, 2025, to submit plans for implementing rebate programs that meet these federal guidelines.

The US EPA has released Notices of Funding Availability (NOFAs) for the $27B Greenhouse Gas Reduction Fund (GGRF) created by the IRA.

  • EPA extended the deadline for the $7B Solar for All competition to October 12 (in line with the other two competitions under the GGRF). Solar for All will award up to 60 grants to states, tribes, local governments and nonprofits to expand residential and community solar investment in low-income and disadvantaged communities. Several states declined to participate, including North Dakota and South Dakota in the Midwest.
  • NOFAs for the $14B National Clean Investment Fund and $6B Clean Communities Investment Accelerator Program were released on July 14, with applications due October 12, 2023.

All states in the MEEA region are participating in this program, except for Iowa, South Dakota and Kentucky($). Nineteen Midwestern metro areas, including all the region’s largest metro areas, also signaled their intent to participate.

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, contact Jason Liechty. 

Upcoming Events

2023 Clean Energy Champion Awards

October 19 in Chicago

The second annual Illinois Clean Energy Champion Awards will be held Thursday, October 19, at 12:00 p.m. CT at the Ivy Room in downtown Chicago. This event, organized jointly by the Illinois Clean Jobs Coalition (ICJC) and the Chicagoland Chamber of Commerce, will recognize and celebrate the remarkable achievements of private companies, nonprofit organizations and governmental units that are working to advance Illinois’ clean energy future.

Click here to register and learn more about this event. 

resources

Recent Publications:

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Recent Testimony and Comments:​