Utility panel declares first energy emergency
Some customers can defer part of electric bills for up to a year

The Louisiana Public Service Commission on Tuesday unanimously declared the state’s first “energy emergency,” a move that allows elderly, low-income and disabled customers to defer paying portions of their electricity bills for as long as a year. The commission also called on the state to appropriate $20 million for energy assistance and efficiency programs.

A 2001 law gave the PSC the authority to declare an energy emergency when the price of natural gas, the fuel used to generate electricity at many utilities around the state, increases sharply as it has in recent months.

Utilities pass on the cost of buying natural gas to customers through a fuel adjustment charge tacked onto bills. This summer, those fuel adjustment charges spiked at the same time Louisianians were consuming more power than at any other time of the year.

Commissioner Foster Campbell called for the emergency declaration because the state, which taxes the oil produced in Louisiana, is making a fortune in taxes from the same high energy prices that are causing residents pain.

“The state is blessed and the people are cursed because the natural gas prices are going through the roof,” Campbell said. “If we’re getting rich off of severance taxes from oil and gas, we should share some of the money back with the people who are having such a hard time paying their bills.”

The energy emergency allows certain customers to defer unusual portions of their bills. Companies set the rules on how to determine what’s abnormally high, but in general, if elderly, low-income or disabled customers who paid $200 for electricity in August last year get a bill for $300 this August, they can defer the $100 difference.

— Funds for federal program —

Campbell also put forth a resolution calling on the state to contribute some of the oil and gas tax money it is earning to the federal Low Income Home Energy Assistance Program. Federal financing for the program is in decline, and Louisiana is one of only nine states that does not the supplement the program.

Campbell’s second resolution also proposes increasing money for energy efficiency programs at the state Department of Natural Resources that offer loans to insulate homes or cash rebates for people who do so on their own.

On Monday, Gov. Bobby Jindal said he supported the energy emergency declaration and pledged to look for funding. He said he thinks he has found $10 million for the energy efficiency efforts, but is still looking for money for the low-income energy assistance program.

Karen Wimpleberg, president of the nonprofit Alliance for Affordable Energy, which is based in New Orleans, said the state needs to create a permanent fund that could be used to finance education, weatherization and energy assistance projects rather than search for money in a crunch.

“All of these steps that they are taking now are Band-Aids,” she said.

The five-member commission did not vote on the energy emergency and funding resolutions, but it adopted them without objection.
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The group set no end date for its energy emergency. Because the commission meets monthly, it could deem the emergency over at any time if natural gas prices fall enough to make a significant difference in the fuel adjustments on people’s bills.

— Emergency could expand —

While the cost of natural gas has declined in recent weeks, it remains at historically high levels. The price has climbed from $2 per million British thermal units of gas in January 1999 to as high as $13 per million Btus this summer.

When people start using natural gas to heat their homes in the winter, the commission said, it might need to extend the energy emergency to gas companies if prices are still in the stratosphere.

For now, the commission’s declaration applies to Entergy Louisiana LLC, which operates in suburban New Orleans parishes south of Lake Pontchartrain plus the Algiers section of New Orleans; Entergy Gulf States LLC, which operates in southwest Louisiana; Cleco Power LLC, whose territory includes St. Tammany Parish; and SWEPCO, a utility in northwest Louisiana.

The energy emergency took effect immediately, and people have one month to sign up for deferred billing.

The legislation that allowed for the emergency declaration limits eligibility to certain people. It applies to customers whose incomes are less than 150 percent of the federal poverty level and who are 65 or older; people who receive food stamps or benefits from the Temporary Assistance to Needy Families program; people whose sole income is Social Security; and people who are on life-sustaining medical equipment.

The declaration also applies to any governmental entity deemed by the Public Service Commission to be a vital entity because the disruption of its services could result in imminent peril to public health safety and welfare.

Commission Chairman Jay Blossman said he’s not aware of any public bodies that have asked for help.

For customers who don’t meet the eligibility requirements but who might be having trouble, both Cleco and Entergy said they have programs that can help.

Customers can pay an averaged bill throughout the year to avoid strain on their budgets in the summer and winter, an option known as levelized billing. They can also choose a date when their bills are due to best match their budget. Companies also have charitable programs to help pay bills in times of need, such as Cleco’s Power of Sharing effort and Entergy’s Power to Care program.

When all else fails, the utilities urge customers to call, they said, because they routinely work with people on special arrangements.

Entergy New Orleans Inc., which is not subject to the Public Service Commission action because it is regulated by the New Orleans City Council, says it has offered deferred payment options to all of its customers for 35 years.

“If they need help, we’re willing to work with them,” said Entergy New Orleans spokesman Morgan Stewart.

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Rebecca Mowbray can be reached at rmowbray@timespicayune.com or 504.826.3417.

Source: Nola.com

This entry was posted on Wednesday, August 13th, 2008 at 9:53 am and is filed under Solar In the News . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.