Jackson Free Press

Sustainable-energy proponents pushed utility-industry representatives and government staffers today to consider implementing a new statewide energy efficiency program funded by the utility industry.

The Mississippi Energy Efficiency Collaborative is meeting today at the Woolfolk Building with representatives of Mississippi Power Company, Entergy Mississippi, the attorney general's office, as well as Mississippi Public Service Commission representatives, to discuss the possibility of funding a massive weatherization and efficiency program to reduce electricity costs for Mississippians.

Massachusetts resident Hale Powell and other collaborative members, including The Sierra Club and the Mississippi Center for Justice, propose a system that would help residents and business owners finance expensive home and cooling-system upgrades through a small monthly rate increase from ratepayers.

"There are probably 36 or more states around the country who already have some form of this program," Powell told the Jackson Free Press. "The funding comes from additional rate charges--typically it's about a tenth of a cent of a kilowatt hour. Some go up to three-tenths if the program is really aggressive."

The collaborative says that the program would amount to a monthly rate increase of $1.50 per bill for the average homeowner. The participants benefit from lower bills through weatherization and installing efficient air-conditioning systems.

"From the homeowner's perspective, you're talking about a $1 to $3 increase--though the increase could be only 50 cents, depending on what your commission agrees to. (Ratepayers) could see a 10 percent monthly reduction in their electricity bill," Powell said. "If your bill is $150 a month, you could save $15 bucks by participating in the program."

The Public Service Commission must agree to the program for its implementation--a decision that requires numerous meetings, discussions and public hearings. A rate increase on people who choose not to participate is the source of the program's debate. Homeowners who do not participate in the program could see little return for their monthly investment of $2 or less.

If the Mississippi Public Service Commission agrees to fund the program through a rate increase, utility companies may fund a portion of a homeowner's and business's investment in expensive upgrades. The owner of an office supply company, for example, may seek to invest in a high-efficiency air-conditioning system costing $100,000, and the utility program would pay a percentage of that cost. Some state programs fund half the investment, which Howell said would probably pay for itself within two years.

"Some programs in other states allow homeowners who have limited capital to do some installation programs for free, such as installing efficient light bulbs and insulating the attic for free. The rate (increase is) less than for a pack of cigarettes to give them the opportunity to save 10 or 15 percent on their monthly energy costs," Howell said.

Public Service Commissioner Brandon Presley said he does not like the idea of increasing customer rates, because utility companies are already raising rates to pay for new power plants, such as a $2.88 billion coal-burning plant in Kemper County. Mississippi Power has yet to disclose the potential rate increases to its customers.

Presley said he believed a rate increase could be better spent on decreasing electricity waste, but said he would see what comes of the discussion in the next few days.

Previous Comments

ID

161171

Comment

So if I'm reading this correctly and this gets implemented, my rates are going to go up even if I don't participate or use the program? Sounds about as bad as the power companies wanting to charge me more if I install solar panels.

Author

LambdaRisen

Date

2010-12-02T18:55:24-06:00

ID

161174

Comment

I dont know if I read this right, but by my bill being $1.5-$3.00 more I could save 10%. So basically we are spending money to save money?

Author

chadmosser1

Date

2010-12-03T10:58:35-06:00