<[link removed]> OCTOBER NEWSLETTER Welcome to the Energy Choice Coalition’s monthly update on what’s happening in retail electricity markets, the latest news on consumer protection, and upcoming events. The Anti-Clean Energy Agenda Rising in the States The battle over the energy transition and the pace of renewable energy adoption is increasingly invading state capitals where some red state legislators are digging in their heels to protect legacy resource industries and investor-owned utilities under the existing monopoly regulatory model. North Carolina recently let the big investor-owned utility Duke Energy <[link removed]> slash what it pays solar customers for excess power generation, undermining the growth of residential solar power in the state. The new rules, which include a $10-a-month tax on rooftop solar owners, make rooftop systems less attractive by raising costs and increasing the time it takes homeowners to pay off the investment. Utilities across the country, notably in California <[link removed]> , claim the generous rates and benefits offered solar customers aren't sustainable and that those with rooftop solar systems aren't paying their fair share to maintain the transmission grid and support the maintenance of existing plants and the construction of new energy sources. Colorado, Idaho and Wisconsin are considering changes to their compensation programs. In Arizona, the powerful Arizona Corporation Commission (ACC) earlier this year reversed a bipartisan agreement to establish a 100% clean energy standard by 2050 for large regulated utilities that could have sparked a solar energy boom. Instead, the Republican-dominated utility commission left in place Arizona’s 2006 requirement that utilities get 15% of their power from renewables by 2025. The ACC now wants to change what it says are currently “unsustainable” rates paid to rooftop solar homeowners for the excess power they generate. There was a time not so long ago when Arizona legislators and regulators favored making the state’s electricity market more competitive and affordable. Sadly, that no longer seems to be the case. Last year, lawmakers removed the words “a competitive market shall exist" from the books despite an earlier request to the ACC to create a framework for the retail market that gave consumers more choices. That same utility regulator has now voted to revisit the compensation rate paid to homeowners and businesses with rooftop solar systems. The commission adopted the current "value of solar" rate in 2017 when it ditched the more generous net metering rate. Now, the ACC’s conservative majority wants to slash once again the return-on-investment rooftop solar owners can earn for selling excess electricity generation to their utility. It's almost as if Arizona conservatives no longer believe in free-market capitalism. What happened to small government conservatism, lower taxes, and the economic freedom of individuals? At the very least, Republicans should be on board with the populist idea of giving people the power to choose their electricity-generating source and service provider and not be dictated to by government regulators. But maybe not. Arizona's rejection of energy freedom and competition is part of a growing trend of political hostility to free enterprise across the country. Multiple states are fighting calls from consumers to have a more significant say in their energy choices. States are also increasingly taking aim at net metering and other compensation programs that pay homeowners a fair price for the extra power they generate and contribute to the grid. All of this is happening while electricity prices are going through the roof and consumers are increasingly being squeezed by inflation. Arizona's major investor-owned utilities have been promising to address rising electricity prices and clean energy goals for years but have failed to deliver. And why would they with a weak cop on the beat? An investor-owned utility without proper oversight is simply an unregulated monopoly that can charge customers whatever it likes. Requiring those utilities to compete for customers with the private sector would force them to prioritize cost savings and respond to consumer preferences. Arizona is blessed with renewable energy potential but still generates most of its power from natural gas, nuclear, and coal. Solar comprised just 10 percent of Arizona's electricity generation last year, and wind contributed only 1 percent. High prices and dirty energy are signs that incumbent utilities are not listening to their customers, who have no choice thanks to the state's outdated monopoly rules. Healthy competition is fundamental to any well-functioning market, whether the broader economy or the state's electricity market. Competition is a basic economic principle that says when firms must compete for customers, it leads to lower prices, higher quality goods and services, greater variety, and more innovation. Conservatives rail all the time about the government picking winners and losers. If competition is beneficial in every other sector of the economy – even the Space Race is now open to competition from private companies – why do conservatives think a monopoly system is in the best interest of Arizona consumers? And finally, watch your inboxes for an invite to an upcoming webinar at the beginning of December on competitive electricity market reforms. Sincerely, Robert Dillon, ECC Executive Director Noteworthy Posts <[link removed]> ILSR Releases Community Solar Tracker <[link removed]> The Institute For Self-Reliance (ILSR) has launched a Community Solar Tracker <[link removed]> on its website to follow the expansion of rooftop solar beyond individual homeowners. ILSR tracks community solar capacity in states with formal programs that allow non-utility ownership. Through community solar, individuals subscribe to a portion of a nearby solar garden and get credits on their energy bill for the electricity it produces. This way, people without the financial means for solar on their rooftops and people who don’t own suitable rooftops can still reap the benefits of renewable energy. ILSR’s website includes toolkits and other interactive material to empower local residents who want to bring community solar to their area. Read More <[link removed]> <[link removed]> Opinion: Georgia Needs Electric Utility Reform <[link removed]> The Atlanta Journal-Constitution published a commentary <[link removed]> on October 20th from Georgia resident Patty Durand urging the state to restructure its utility regulatory system to keep up with the rapid change of technology. “The number of advancements in how energy is produced and delivered and stored is mind-boggling. Things like data analytics, virtual power plants, grid edge services and distributed energy mean the electricity grid is able to decarbonize affordably and rapidly and it means people can be engaged in ways never before possible. “Yet none of that is seen in recent announcements from Georgia Power as reported in The Atlanta Journal-Constitution, in which the utility claims that large amounts of new capacity that only it can produce are required to meet a capacity crunch. Georgia Power is a monopoly utility that is guaranteed a healthy profit for building power plants, an antiquated business model that needs to change. Of course they will claim the need to build more capacity: that is how they make money.” Read More <[link removed]> <[link removed]> Report Looks at Group Studies to Ease DER Interconnection Backlog <[link removed]> The Interstate Renewable Energy Council (IREC) published with a new report on the use of “group studies” to streamline the interconnection of distributed energy resources (DERs) to the electric distributed energy resources (DERs) to the electric distribution grid. The report, Thinking Outside the Lines: Group Studies in the Distribution Interconnection Process <[link removed]> , aims to help regulators, utilities, and clean energy stakeholders evaluate whether group studies may be an effective avenue for addressing interconnection issues. As an increasing number of DER projects seek to interconnect to the grid, the interconnection process has slowed in many states. It is not uncommon for DER projects to spend years waiting in a queue to be studied. Fewer than 25% of solar and wind projects successfully get through the interconnection bottleneck. Those that do face rising costs, some almost 400% higher than previous years. Read More <[link removed]> <[link removed]> Report: Michigan legislators took $176K from DTE since pledging new era of utility accountability after outage backlash <[link removed]> The Energy and Policy Institute <[link removed]> reports that Michigan legislators are failing to keep their transparency pledge to voters. DTE Energy has given $176,000 to Michigan lawmakers’ campaigns and related funds since a February ice storm caused lengthy power outages, a reoccurring event that stoked widespread backlash from DTE customers. The spending comes as Democrats attempt to pass climate and consumer protection bills, raising questions over whether they will deliver on promises that some have made to rein in the utility. Michigan’s House and Senate energy committees held a pair of hearings in March where members grilled utility executives <[link removed]> and relayed the frustrations of residents whose lives were upended by days-long DTE outages. But despite blasting the outages as “unconscionable <[link removed]> ” seven months ago, legislators appear to have softened their push for utility accountability – and roughly 100 of them have taken DTE money since then, state campaign finance records <[link removed]> show. Read More <[link removed]> <[link removed]> California CPUC Delays Solar Billing Decision Until Nov. 2 <[link removed]> The California Public Utilities Commission (CPUC <[link removed]> ) has postponed a decision on whether to reduce rooftop-solar incentives for users with multiple meters until Nov. 2. The delay comes after local clean energy advocates complained the move would reduce incentives for adopting solar and set back the state’s clean energy goals. Reimagine Power, a local energy advocacy group <[link removed]> , helped galvanize opposition from utility customers across the state, including agricultural organizations, renters’ rights groups, school districts and environmental advocates. “The extension is likely the result of all the public pressure, hundreds and hundreds of personal communications, op-eds and editorials that the CPUC — and Governor who appoints the commissioners — received from everyone under the sun, that the decision must be amended,” Igor Tregub, Reimagine’s Strategic Partnership Director, told local media outlets. “I think the decision to postpone the meeting for three weeks is a positive one. Of course, I don’t know what their final decision will be.” Read More <[link removed]> <[link removed]> Utility Drive Opinion: Competitive power markets are cleaner, cheaper and safer <[link removed]> Former FERC Chairmen Jon Wellinghoff and Pat Wood write that competitive market systems have proven more effective at driving cost-effective decarbonization than single-utility markets, all while fostering reliability and long-term planning. The op-ed originally appeared in Utility Drive <[link removed]> on Sept. 15. “Experts believe that this summer has been the hottest ever recorded on Earth. At the same time that severe weather events are wreaking havoc on our power systems, U.S. energy costs rose <[link removed]> two times faster than inflation in 2022. These trendlines are alarming and rightfully capture our attention. Also alarming? The sentiment among some of our nation’s federal electricity regulators that we should move away from open, competitive markets toward monopoly-dominated structures. In the face of pressing cost, climate and grid reliability challenges, this shift would have massive negative consequences for all Americans.” Read More <[link removed]> <[link removed]> Report: Florida Supreme Court orders Florida Public Service Commission to do its job <[link removed]> The Florida Supreme Court ruled <[link removed]> on Sept. 28 that the state’s Public Service Commission failed to justify why the largest utility rate increase in state history for Florida Power & Light was in the public interest and how it was allowed by law. The court sent the case back to the commission in a a 4-2 decision <[link removed]> in the case of <[link removed]> Floridians Against Increased Rates, Inc. v. Gary F. Clark, etc., et al. Floridians Against Increased Rates, Florida Rising and others, previously <[link removed]> challenged a decision made by the Public Service Commission to approve a settlement agreement between Florida Power and Light and other interested parties providing for a rate increase. Floridians Against Increased Rates and Florida Rising had argued the Public Service Commission’s decision did not comply with Florida law resulting in “unfair and discriminatory customer rates.” In its Sept. 28 decision, the Florida Supreme Court ordered the commission to justify its approval of Florida Power and Light's $4.868 billion rate increase settlement, instructing the commission to “do the job with which the Legislature has tasked it” and explain why the increase in customer bills paired with charging customers for a higher rate of profit as agreed to in the settlement was “fair, just, and reasonable” for Floridians. Read More <[link removed]> “At the end of the day, competitive market systems have proven more effective at driving cost-effective decarbonization than single-utility markets, all while fostering reliability and long-term planning…. Amid the debates over climate change, energy policy and grid security, it is crucial to recognize that a system anchored in a competitive market structure still delivers the best results,” – Jon Wellinghoff and Pat Wood, Utility Drive, Sept. 15, 2023 <[link removed]> . What We’re Reading Right Direction Competitive power markets are cleaner, cheaper and safer write former FERC commissioners Jon Wellinghoff and Pat Wood <[link removed]> . A South Carolina lawmaker complains that grid strains are caused not just by growing demand and a lack of new generation, but by inefficient “vertically integrated monopoly utilities” that should face more competition <[link removed]> . Ohio legislator introduces bill that would bar utilities from charging customers for political activities <[link removed]> , following in the footsteps of Colorado and other states that have put consumers first. Relying on a public-private partnership, Missouri has partially lifted the state's ban preventing third-party aggregators from bidding demand response into wholesale markets. The ruling benefits DERs and microgrids, as well as the overall electricity grid, writes Microgrid Knowledge <[link removed]> . California environmentalists and affordable housing advocates join forces with the clean energy and building industries to urge regulators to reject proposed changes to rooftop solar compensation <[link removed]> for multi-metered buildings. Houston solar exec says a major key to slowing climate change is offering energy independence <[link removed]> . The Pennsylvania General Assembly is reviewing measures to give consumers more relief and greater control over their energy options <[link removed]> , and to increase transparency in how utilities operate and bill customers. Wrong Direction North Carolina’s shift to limit net-metering exemplifies the kind of state-level policy changes worrying solar advocates <[link removed]> , with Florida and Arkansas considering cutting their programs. Environmental and clean energy groups appeal to North Carolina courts to overturn state regulators’ decision <[link removed]> that let Duke Energy reduce what it pays rooftop solar owners for excess energy and add a monthly $10 fee. The Institute for Local Self-Reliance documents the anti-competitive tricks up utility sleeves <[link removed]> in their recent Local Energy Rules podcast. In Virginia, clean energy, data centers and utility influence are all on the ballot this year, according to the Virginia Mercury <[link removed]> . An attorney for an Arizona utility gets caught saying the quiet part out loud by Mother Jones <[link removed]> . A recent analysis by the Energy and Policy Institute <[link removed]> finds that Alabama Power’s profitability is one of the highest in the nation and it’s costing the utility’s customers an extra $250 million per year, despite claims to the contrary from Alabama's top utility regulator Twinkle Cavanaugh. The Energy and Policy Institute also reported that Potomac Edison faces Maryland audit <[link removed]> after admitting it charged customers for FirstEnergy’s bribes and lobbying. Two recent citizen opinion pieces in the Charleston Gazette-Mail argue that solar opportunities in West Virginia are under threat <[link removed]> from entrenched fossil fuel interests and increasing costs <[link removed]> on ratepayers. E&E News’ EnergyWire takes a deeper look at the history of clean energy mandates in Arizona, arguing that shifting politics have stalled a bipartisan push for a carbon-free electricity standard <[link removed]> . And Finally… Just in time for Octoberfest… popular Vermont brewery says it’s now completely powering its operations with solar power <[link removed]> Subscribe to Newsletter <[link removed]> The Energy Choice Coalition's mission is to promote consumer-first policies that lead to greater competition and choice in retail electricity markets. We stand up for free-market principles against a legacy monopoly system that has outlived its usefulness and is impeding the transition to a cleaner, more affordable electricity system. Email us to join the coalition for energy freedom or learn more about the benefits of competition: [email protected] <mailto:[email protected]> . <[link removed]> <[link removed]> Energy Choice Coalition 25 Massachusetts Avenue, NW, Suite 820 Washington, DC 20001 United States Powered by Squarespace <[link removed]> Unsubscribe <[link removed]>