The Triangle Business Journal discusses (subscription required) a fight that is occurring before the Utilities Commission.
Industrial electricity customers (i.e. the big electricity users) are arguing that the infamous Senate Bill 3 allows them to opt-out of any requirement to pay for energy efficiency and demand-side management programs.
The Utilities Commission (Commission) sees the payment issue differently, at least in regards to a program proposed by Progress. This program would cost $260 million. Residential and commercial customers (i.e. individuals and small businesses) would have to pay $157.2 million and the industrial customers would have to pay $102.8 million. The industrial customers are saying they aren’t required to pay the $102.8 million.
Unfortunately, they are right. The Utilities Commission was incorrect when they drafted their June decision, and if they follow the law, they would force residential and commercial customers to pay the whole bill.
Thank the legislature for creating a special opt-out provision that clearly allows industrial customers to opt-out of paying for any of these programs. The Commission is trying to use some far-fetched argument to say the opt-out provision doesn’t apply. They are reviewing their decision though.
Personally, I’m glad to see the industrial customers having to fight to get the Utilities Commission to agree with their opt-out argument. If it weren’t for their support of Senate Bill 3, who knows what would have happened to the bill.
The funny thing is the Utilities Commission staff was at the special interest meetings where the bill was slapped together. They certainly know, as well as anyone, that the opt-out provision was designed to be excessively broad and to allow industrial customers to avoid ever paying these fees.
They also know that the industrial customers almost certainly agreed to support the bill because they thought the opt-out provision would protect them. Maybe the industrial customers are getting what they deserve though for selling out and supporting a bill that hurts North Carolinians.
Oh, by the way, someone I know warned even before Senate Bill 3 was passed that residential and commercial customers were getting slammed when it came to these energy efficiency programs and the industrial customers were getting an indefensible opt-out provision. If the industrial customers could opt-out, so should everyone.
Of course, there shouldn’t be energy efficiency programs at all.