<[link removed]> NOVEMBER 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. Inflation Worries Cloud Solar Industry’s Future The residential solar market is facing a challenging year as high-interest rates and the potential of a recession cut into consumer demand. Changes to incentives in several states are exacerbating the difficult financial outlook. Low financing costs have been a boom to the residential solar industry in recent years, allowing homeowners to upgrade their energy systems to generate and store their power with low-cost loans. But rising interest rates since early 2022 have caught up with the solar sector – at least for the immediate future. Interest rates are at their highest level in 22 years, increasing financing costs and weakening demand. High interest rates have increased the cost of financing rooftop solar and storage systems for homeowners, lengthening payback periods and undercutting energy savings. Wood Mackenzie predicts residential solar growth will contract next year for the first time since 2017. Residential solar installations were up 31 percent in the first half of this year compared to the previous year's period. Still, high interest rates caused slowdowns in traditionally strong markets in the Southwest. The downturn in demand has resulted in a 41 percent drop in the value of stocks on the Invesco Solar ETF. The Federal Reserve has raised rates 11 times in the current economic cycle. But the central bank recently announced it’s holding interest rates steady at a target range of 5.25 to 5.5 percent, a positive sign that a turnaround could be in the cards in 2024. But while the cost of financing a rooftop solar system is higher, consumers that continue to rely on their investor-owned utility for electricity are paying more as well. The national average price of electricity in October was nearly 16 cents a kWh, according to the Energy Information Administration <[link removed]> . In addition to rising interest rates, regulatory changes have further hampered growth in the residential market. California rooftop solar installations have shrunk up to 85 percent since regulators cut net metering rates <[link removed]> in April, according to the California Solar and Storage Association. The story is much the same in a number of states <[link removed]> that have reduced the rate paid to rooftop solar owners who sell their excess energy back to their local utility. On the bright side, consumers can still take advantage of generous federal incentives, which go some distance in making up for the higher cost of financing. The Inflation Reduction Act (IRA) extends the Solar Investment Tax Credit (ITC) to 2032 at its existing 30 percent rate. When you take into account rising electricity costs and the benefits of being able to generate and store power independently. Sincerely, Robert Dillon, ECC Executive Director UPCOMING WEBINAR: Market Formation and the Benefits of Competition Join the Energy Choice Coalition and ConservAmerica on Wednesday, December 6 at 11:00 am EST Click here to register <[link removed]> for this webinar. Competition in electricity markets provides economic, reliability, environmental, and governance benefits. Yet 18 states still use the traditional regulatory model that allows large vertically integrated utilities to hold a monopoly in their service areas. Another 19 states allow wholesale competition but still allow regulated monopolies to serve all or most retail customers. Just 13 states and Washington D.C. allow competition at the retail and wholesale levels. While many states are considering increasing competition in their wholesale markets, small consumers in retail markets are still being left behind. Join ConservAmerica and the Energy Choice Coalition on Wednesday, December 6 at 11:00 am ET for a discussion on the benefits of competition in electricity markets with: Michael Giberson of the R Street Institute, Lynne Kiesling of the Institute for Regulatory Law & Economics at Northwestern University, Meghan Nutting of Sunnova, and Robert Dillon of the Energy Choice Coalition and ConservAmerica. Click here to register <[link removed]> for this webinar. Noteworthy Posts <[link removed]> Michigan Utilities Flood Legislators with Cash Ahead of Clean Energy Debate <[link removed]> The Energy and Policy Institute <[link removed]> recently published the following report detailing how utility campaign giving nears $500K as Michigan lawmakers weigh energy bills <[link removed]> . Michigan utility giants DTE Energy and Consumers Energy have given state lawmakers nearly half a million dollars in campaign contributions this year, according to new state disclosures that come amid worries that the same legislators will weaken key bills to accelerate the transition to clean energy to appease the utilities. Political action committees (or PACs) tied to DTE and Consumers have channeled a total of $479,450 to campaign accounts tied to legislators, Governor Gretchen Whitmer, and broader party funds between January 1 and October 20. The filings, released this week, show funds affiliated with 119 of 148 state legislators – 80% of the body – have taken utility money this year. House and Senate energy committee members and chairs are notable beneficiaries, including some who promised to usher in <[link removed]> a new era of utility accountability after widespread power outages earlier this year. Read More <[link removed]> <[link removed]> Opinion: Virginia's focus on nuclear energy is misguided <[link removed]> Patty Durand, founder of Cool Planet Solutions and past president of the Smart Energy Consumer Collaborative writes in The Roanoke Times <[link removed]> that Virginia's focus on nuclear energy is misguided. “We live in amazing times to experience the benefits of technology, not only with smartphones, computers and medicine, but especially for energy. The number of advancements in how energy is produced and delivered and stored is mind-boggling. Things like data analytics, virtual power plants 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.” Read More <[link removed]> <[link removed]> OPINION: Securing Georgia's energy future with community solar <[link removed]> Tyler Adams, state director for Conservatives for Clean Energy Georgia <[link removed]> , writes in the Valdosta Daily Times <[link removed]> that developing more community solar in Georgia can boost grid reliability while adhering to conservative political principles. Adams writes that growing energy demand is an opportunity for decarbonization through increased renewable energy deployment. Read More <[link removed]> <[link removed]> Ohio Watchdog Seeks Identity of PUCO Staff that Classified Public Information Related to HB6 Crimes <[link removed]> The watchdog organization the Checks & Balances Project <[link removed]> has requested the identities of the Ohio Public Utilities Commission staff members who recommended issuing the protective order <[link removed]> that declared publicly available information to be trade secrets in the audit conducted into the details of Ohio’s HB6 law. The redaction included the identity of the company auditors accused of “overcharging” the Ohio Valley Electric Corp.’s Clifty Creek power plant for coal and other financial information about the utility – details are publicly available in filings to the U.S. Energy Information Administration and on the utility’s website. Read More <[link removed]> <[link removed]> Criminal investigation ongoing into Ohio utility bailout scandal <[link removed]> The Ohio Capital Journal <[link removed]> documents the ongoing investigation into the massive bribery scandal in Ohio involving FirstEnergy and state legislative leaders. According to the Ohio Capital Journal, five have been charged and four have been convicted in the bribery and money-laundering scandal and there are now more signs that the federal criminal investigation continues. Read More <[link removed]> What We’re Reading Right Direction The high-stakes nature of one of this year’s biggest public corruption trials became clear recently when a defense attorney predicted an ominous argument from prosecutors: That federal guidelines call for life sentences for four people convicted of conspiring to bribe then-Illinois House Speaker Michael J. Madigan. ‘Life’ at stake? Ominous prediction made as sentencing hearings loom in ComEd bribery case <[link removed]> . An apartment complex in Herriman, Utah, is powered by 5 MW of solar panels and has a battery in each of its 600 units. Seven lessons for Rocky Mountain Power and its partners from virtual power plant pioneer Soleil Lofts <[link removed]> . Green Bay, Wisconsin, officials unveil the city’s first clean energy plan that calls for renewable energy and electric vehicles to help reach a net zero carbon target by 2050. Green Bay unveils Clean Energy Plan to achieve carbon neutrality by 2050. Here's what to know <[link removed]> . U.S. Energy Secretary Jennifer Granholm will tour a Louisiana microgrid project that installs solar and battery storage in underserved neighborhoods. Project marks seventh ‘Community Lighthouse’ to come online <[link removed]> . Dominion Energy reaches a tentative settlement with ratepayer, environmental and other groups to keep its base rates stable for the next two years while increasing its allowable profit. Proposed Dominion rate settlement would keep customer base rates stable for next two years <[link removed]> . Wisconsin Democrats propose a sweeping, 20-bill climate package that they hope gains at least some bipartisan support with measures involving energy efficiency and agriculture. Assembly Democrats take aim at climate change in large package of bills <[link removed]> . Black Hills Energy is no longer pursuing a plan to lower the rates it reimburses rooftop solar customers for the excess power they send back to the grid. That comes after statewide environmental group issued a report countering the utility’s claims those with solar panels are costing those without more money <That%20comes%20after%20statewide%20environmental%20group%20issued%20a%20report%20they%20say%20counters%20the%20utility’s%20claims%20those%20with%20solar%20panels%20are%20costing%20those%20without%20more%20money.> . Illinois ratepayer advocates praise state regulators for limiting four gas utilities’ proposed rate increases to roughly half of what the companies requested. Advocates hail regulatory ‘earthquake’ as state slashes requested gas rate increases <[link removed]> . A Colorado city completes a solar installation expected to offset 100% of its municipal facility and streetlight power consumption. Fountain, Colorado Completes Groundbreaking Solar Array Project to Achieve 100% Offset of Municipal Electrical Use <[link removed]> . A Hawaii county streamlines residential solar permitting for systems under 10 kw. A boost for residential solar <[link removed]> . A Montana ski area installs a solar system expected to offset about 70% of a chairlift’s power use. Montana ski area adds solar power <[link removed]> . A federal appeals court grants FirstEnergy’s request to have the court review an earlier ruling supporting utility investors’ pursuit of a class action lawsuit over alleged securities fraud <[link removed]> . Rocky Mountain Power awards a Wyoming nonprofit more than $100,000 to help install a solar array <[link removed]> on its facility. The New York Times <[link removed]> looks at how electricity is changing, country by country. A California columnist explores ways to make residential solar more equitable but says slashing incentives before alternative solutions are implemented is “inexcusable” in an era of climate calamity. California strikes another blow against rooftop solar <[link removed]> . Wrong Direction Ohio utilities have added nearly $6.5 billion in PJM-approved “supplemental projects” since 2017 without oversight of their need, prudence and cost-effectiveness, the Ohio ratepayer advocate said. FERC must review local transmission planned by AEP, Duke, other Ohio utilities: complaint <[link removed]> . Xcel says a new grid management policy in Minnesota is necessary for safety and reliability, but others say the standard is illegal and want it investigated. 'Deep disappointment' over Xcel's new policy that restricts small solar <[link removed]> . Residents in two East Texas towns outside the state’s deregulated market sue to have state regulators review their municipal utilities’ rates and provide more transparency about how they’re set. Seeking lower electricity rates, residents in two East Texas towns hope the state will intervene <[link removed]> . Electric customers have fallen into a “regulatory gap” that’s allowed billions of dollars of transmission construction to happen without oversight of need, prudence or cost effectiveness, according to a complaint filed with federal regulators by the Office of the Ohio Consumers’ Counsel. Lack of oversight on transmission spending leads to higher electric bills, consumer advocate says <[link removed]> . A metering change requested by Mon Power and Potomac Edison would change the amount of money the utilities have to pay West Virginians for electricity generated from rooftop panels. Under utilities’ proposed changes, solar panels could become unaffordable for many West Virginians <[link removed]> A central Michigan county continues to plan for restrictions on wind and solar development <[link removed]> despite the potential of being overruled by the state. Illinois regulators will decide today on rate increase requests from three gas utilities <[link removed]> that total nearly $900 million and face strong criticism from ratepayer advocates. Gerrymandering, voter suppression, dark money and other moves insulate Ohio policymakers from accountability when they prop up fossil fuels at the expense of clean energy – Ohio’s climate progress stymied by political ploys <[link removed]> . California makes it harder for schools, farms and rental housing to go solar. Regulators have slashed the value of shared-solar systems <[link removed]> , starting in 2025. School districts, community advocates and politicians have expressed outrage over the decision. Texas voters approve $10B energy fund, with most going to build gas-fired power plants. The fund will be administered by the Public Utility Commission of Texas, with $7.2 billion allocated for new construction or upgrades of dispatchable power generation <[link removed]> . A trade group finds inadequate regulatory support for microgrid development in all Western states but Colorado, which received a “B” grade. Microgrids Can Bolster Creaky Electricity Systems, But Most States Do Little to Encourage Their Development <[link removed]> . Ohio’s former top utility regulator, who accepted what FirstEnergy said was a $4.3 million bribe from the utility, has not been charged with a crime <[link removed]> three years after federal agents raided his home. California’s Supreme Court rules Pacific Gas & Electric customers cannot sue the utility for losses incurred during public safety power shutoffs aimed at reducing wildfire hazard <[link removed]> California’s grid is hindering its climate goals. Can a new law fix it? The state’s grid isn’t growing fast enough to support a surge of EVs, heat pumps and more <[link removed]> . A new law offers a potential path forward — and could be a model for other states. And Finally… David Roberts at the Volts <[link removed]> podcast has a fun conversation with cleantech investor and podcast host Shayle Kann. Kann hosts Catalyst <[link removed]> on Canary Media which looks at the decarbonization race. 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]>