Louisiana Declares Energy Emergency

On August 12 the Louisiana Public Service Commission unanimously declared the state's first-ever "energy emergency," which will allow elderly, low-income and disabled customers to defer paying the increased portions of their electricity bills for up to a year.

The Commission also passed a resolution asking the state to appropriate $20 million for energy assistance and energy efficiency programs from the surplus the state now has as a result of increased oil and gas severance tax revenues. These revenues have increased by 77 percent in the past year and now total about $102 million. 

The deferred payment program applies to low-income utility customers (income not to exceed 150 percent of federal poverty guidelines) over the age of 65, customers whose only income is Social Security, those who receive food stamps or TANF and any customer using life sustaining medical equipment. The state’s major electric utilities, Entergy, (except Entergy New Orleans which isn’t regulated by the Commission), CLECO and SWEPCO are mandated to participate. Customers apply for the deferment at community action agencies.

Each utility will have its own program rules, but in general customers can defer payment of the difference in their electric bill between last August and this August. 

The Commission resolution seeks $12 million to supplement LIHEAP and $8 million for an existing energy efficiency program called Home Energy Rebate Option that provides rebates of up to $2,000 to residents making home efficiency improvements. Governor Bobby Jindahl reportedly supports the energy emergency declaration and pledged to look for state funds to supplement LIHEAP. 

The resolution cited the state of Colorado, which has allocated multi-year funding to supplement low-income energy assistance and energy efficiency, utilizing mineral and natural gas severance tax revenues.

Source: LPSC, newspapers

Page Last Updated: August 14, 2008