Louisiana utility companies want customers to pay for lost profits 

Louisiana’s major electric utilities are still pushing state regulators to allow them to charge customers for the costs of a new statewide energy efficiency program and for the electricity consumers will no longer need because of that program, Louisiana Illuminator reports. 

A large group that included Louisiana Public Service Commission staff, utility company executives, consumer advocates and other energy experts met Wednesday to evaluate bids from companies that want to oversee Louisiana’s new energy efficiency program. 

LPSC’s new energy efficiency program requires utility companies to meet certain energy savings targets the administrator sets. Hitting those targets could require big changes from utilities―such as systemwide upgrades―or smaller efforts like helping low-income customers insulate their homes. 

While the idea might seem like a solution to cut back on waste, utility company executives have been pushing back. In general, utility companies earn more profit when homes and businesses waste electricity. Less waste leads to lower electric bills, which could mean lower profits for the utilities. 

Entergy Louisiana and Cleco are two of the state’s utility providers that have vehemently opposed the idea and delayed its adoption for years. A consultant the commission hired to write the basic guidelines for the program spent 13 years and over $500,000 trying to appease utility companies with agreeable rules, Louisiana Illuminator reports. 

In an effort to end the delays, Commissioner Craig Greene, R-Baton Rouge, ended the stalemate in January and joined with the two Democrats on the commission in adopting what they say is a more consumer-friendly program what the utilities wanted. 

Though customers are covering all the costs of the program, the utility companies also want  customers to recover lost profits with “under-earning” fees. The utility companies lobbied the LPSC to keep a provision that allows them to tack on additional charges to make up for profits they miss out on when their customers no longer waste electricity.

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