Arkansas PSC Approves Energy Efficiency Programs

On January 11, the Arkansas Public Service Commission (PSC) adopted rules that are expected to lead to the state’s first utility-funded energy efficiency programs, including weatherization of low-income households. As part of the state’s first regulatory framework for energy efficiency programs, the Commission ordered all jurisdictional electric and gas utilities to begin implementing cost-effective energy efficiency programs for all customer classes.

The rules were the result of a collaborative process, participants included the state’s utilities, the state community action association, industrial and commercial customers and the PSC. Utilities were ordered to file plans for programs that could be implemented on a “quick start or pilot” basis by April 12, 2007 with implementation no later than September 1, 2007.

Low-income households are expected to be served under a “quick start program” for “severely energy-inefficient homes” that may be weatherized through the state’s Weatherization Assistance Program network and guidelines. Eligibility criteria would include age, type and energy efficiency condition of homes, but not income, because collaborators agreed that a low-income specific program could not be approved in Arkansas due to potential lawsuits.

The rulemaking process, began a year ago, was designed to increase the level of energy conservation and energy efficiency activity in Arkansas. Citing record natural gas prices and the nation's energy crisis, along with Arkansas' ranking as one of the states with the fewest conservation and energy efficiency programs, the PSC stated that it was critical to ratepayers and the state’s future that more attention be focused on ways to reduce all consumers' electricity and natural gas usage.

For more information, see the PSC website and search for Docket # 06-004-R, including Order Number 12, dated January 11, 2007.

Source: Arkansas PSC

Page Last Updated: January 27, 2010