Daniel Tait

Formal Complaint Over AL Power Solar Tax Filed by GASP, Southern Environmental Law Center

Below is a reproduction of an email we sent out in support of GASP and SELC’s challenge to Alabama Power’s unjust solar tax.

 

Friends and members,

It’s just not right.

Regular, hardworking Alabamians who generate their own solar electricity are being singled out by Alabama Power and the Alabama Public Service Commission. That’s why like-minded people from across the state are joining forces and fighting back.

OK, so if you haven’t heard the news, you might be a bit confused right about now. Here’s the skinny.

Back in 2012, the Alabama Public Service Commission (APSC) approved a fixed fee for Alabama Power customers who generate their own electricity. That fee, or really tax, went into effect the following year. Basically, any residential customers who generate solar power have to pay Alabama Power $5 per kilowatt PER MONTH just for the privilege.

Like we said, it’s not right. But it is unreasonable, unjust, discriminatory, and contrary to the public interest.

If those words have a nice ring to them, that’s great! On Thursday, the Southern Environmental Law Center (SELC) and GASP filed a formal complaint with the APSC over that ridiculously unfair fee. Some of those words we just used to describe the fee are in there. Pretty cool, right?

(If you missed it, AL.com’s Dennis Pillion has the story right here.)

Now that you know, we’re asking everyone to please take a look today. Brush up on the policy. Be prepared to talk about this with your friends and family. Spread the word! And while you’re at it, visit the APSC website and contact your commissioners (or even the Commission’s President).

Don’t know who to contact? Start here!

We all know that solar power is great. It’s clean. It’s renewable. And, hey, it’ll even save you money on your utility bill.

Well, that’s all true unless you’re an Alabama Power customer. So now it’s time we changed that.

Shine on,
-Daniel

Energy Alabama Calls For Public Hearing On Alabama Power Federal Tax Savings

Note: This post is available here as a downloadable press release

HUNTSVILLE, AL — Energy Alabama is calling for a public hearing to help Alabama Power customers understand how the company plans to spend more than a quarter of a billion dollars in savings from the recent federal tax overhaul.

As a result of recent changes to the federal tax code, Alabama Power has a tax adjustment tariff that will return approximately $257 million to the company in reduced taxes. Some of Alabama Power’s plans to distribute this money to customers have been outlined in a recent Form 8-K filing with the U.S. Securities and Exchange Commission. The Alabama Public Service Commission is scheduled to vote tomorrow, May 1, 2018, less than two weeks from its initial filing with the SEC.

However, Energy Alabama has serious concerns about this closed-door process:

  1. An 8-K is required for matters about which Alabama Power must inform its investors. It has done so. However, Alabama Power has not informed the public, or its customers, of its plans. Is Alabama Power fulfilling its obligations to Wall Street but not to regular Alabamians?
  2. The 8-K states that Alabama Power plans to return $50 million to customers and use the rest for other purposes, perhaps to improve their borrowing capacity and recoup under-recovered fuel costs. From these filings, we cannot tell exactly what Alabama Power is attempting to do with all of this money. Their plans may be reasonable, but this lack of transparency underscores the need for a public hearing to show how customers are helped and not harmed.
  3. To this end, Energy Alabama is calling for a public hearing so the public can understand exactly what is going to happen with their money AND have a say in the matter. As it stands now, decisions are being made behind closed doors with less than two weeks of notice.
  4. Energy Alabama is also calling for the Alabama Attorney General’s office to act as a true customer advocate and ensure the best outcome on the behalf of Alabama Power customers. What role, if any, did the AG’s office play in the decision-making?
  5. Georgia Power and the Georgia Public Service Commission have already worked out exactly how much money an average customer will save. Both have been forthcoming with this information. We call on Alabama Power, Georgia Power’s sister company, to do the same.
  6. Energy Alabama is not the only one calling for a public hearing. We echo the complaint filed by Ms. Joyce Lanning.

A previous closed-door process led to the unjust and arbitrary solar tax reported by AL.com on Friday. Thankfully, that decision is now being challenged.

For more information about this topic, please contact Daniel Tait by phone at (256) 812-1431, or by email at dtait@alcse.org.

Greener State Only Leaves You With Less Green. Here's Why.

Greener State Only Leaves You With Less Green. Here’s Why.

Greener State is a new program from Alabama Power that claims to give utility customers the chance to cover up to 100 percent of their energy usage with renewable sources. Which sounds great in theory because, after all, who doesn’t like renewable energy? In practice, though, Greener State isn’t everything it’s cracked up to be.

TL;DR – Alabama Power, and really all utilities, should stop charging their customers a premium for the privilege to buy renewable energy. Renewable energy is already the cheapest power to procure. Instead, they should focus on expanding access to renewable energy sources – for everybody. Alabama Power should make it easier for people to use renewable sources, not charge them extra.

The Skinny on RECs

Renewable Energy is great! Let’s expand access to it, instead of charging a premium.

Now, let’s back up. According to Greenerstate.com, the Greener State program allows Alabama Power customers to “greenify” their energy consumption with something called Renewable Energy Certificates. They’re called RECs for short, and the idea is that you can buy enough of them to cover all of your energy usage.

If you do that, you will have (in effect) used 100 percent renewable energy without buying and installing an expensive solar setup at your home. Meanwhile, you’ll be helping Alabama Power invest in wind, solar and biomass sources. The program doesn’t cost a whole lot, and you’re even taking care of the environment at the same time.

What’s not to like? More from Greenerstate.com:

RECs are the strongest driver of renewable energy development, and give you the ability to support renewables without the heavy cost of owning personal systems. You can certify that your electric usage is covered by renewable energy, but not spend tens of thousands on a solar panel system.

Since 2014 Alabamians have covered 3,267,000 kWh of their homes’ usage with renewable energy through our REC program. Now you can be a part of the movement with Greener State. This market force leads to more demand and accelerates the growth of renewable energy. RECs are a win-win-win.

A Win-Win?

First of all, a solar panel system for your home doesn’t cost tens of thousands of dollars. But let’s leave that for another time. Instead, let’s focus on that last part. For Alabama Power, Greener State definitely is a win-win. For customers, it’s really not.

To understand why, let’s take another look at the Greener State website. An article titled “The Future of Renewables in Alabama is Bright… Literally” notes that in December 2017, Alabama Power will begin receiving energy from a 72-megawatt solar plant in Lafayette, Alabama. And that’s not all. Not nearly. The same article mentions 14 hydroelectric facilities, a couple of wind projects and even some biomass energy – all of which Alabama Power supports.

Here’s the thing. If I’m a paying customer of Alabama Power, shouldn’t my money already support renewable energy? I mean, since Alabama Power is so invested in renewables, it just makes sense.

Well, Alabama Power never explains that part. Not at all.

Greener State: Really Just Leaving You with Less Green

Who doesn’t love solar? What we need is MOAR renewables! (Not a premium for the privilege.)

So, what’s the alternative? Here at Energy Alabama, we believe that renewable energy is the best and most cost-effective energy available. So, yes, utility companies should be investing in it. Heavily.

But while Alabama Power’s marketing is slick, Greener State just doesn’t add up. To be clear, investing in renewables is unquestionably a good thing. But in its current form, Greener State merely serves as an example of how Alabama Power values one form of green over another.

Instead of charging a premium to “support” renewable energy that is already in place, why not just continue investing in renewables while expanding access for all? In the long run, that’s the best and most cost-effective solution for Alabama Power and its customers.

And in the long run, that would be the real win-win for everybody.

Madison schools join the North Alabama Buildings Performance Challenge

MADISON, Ala. –  The Madison City Schools system is saving hundreds of thousands of dollars by being more conservative when it comes to energy use.

Now, they are going head to head with other businesses and organizations around Madison County to see just how much they can save on energy.

“It’s a voluntary effort where organizations and businesses from around north Alabama are committing to energy efficiency,” said Daniel Tait, CEO of Energy Alabama.

To continue reading the full article, please visit: http://whnt.com/2017/10/07/madison-schools-join-the-north-alabama-buildings-performance-challenge/

Can electric cars save utilities

Can Electric Cars Save Utilities?

Over the past decade, we as a society have become much more energy efficient; we have energy efficient light bulbs, our appliances require less watts, and we can even install solar panels onto our homes to generate our own energy. Undoubtedly, these are great steps to take if we want to preserve natural resources and save some capital for other expenses like shopping or groceries. But is there a downside to someone?

As mentioned in a previous blog, the utility death spiral is a reality that could be all too imminent. Hawaii and some parts of Europe are already seeing the foreboding signs of a utility crisis. A result of declining prices and rising costs, utility companies are left desperate for new load growth. Utilities have been threatened by numerous factors like LED bulbs, on-site solar, and energy efficient appliances, which cause significant declines in utility sales. If revenue falls too quickly, then utilities become liable to start in free-fall, much like what happened in Germany where utilities lost half a trillion euros in their markets. Innovation and progressive change are good, but pace is pertinent in their execution. 

Another haunting reality for utilities is the void of commonly found, high-demand appliances in consumer facilities. Decades have passed since the refrigerator or heating and A/C units, all of which require considerable amounts of energy to operate, have been taken into our homes and commercial facilities. When these appliances were first introduced, utilities saw a major increase of demand. But that was long ago, and we have since become a much more energy efficient society, especially with largely encouraged renewable energy sectors.

However, quick innovation can involve shifts in losses and benefits from one industry to another. So if the electric car companies can take business away from the gigantic petroleum energy by releasing more electric cars (EV’s), then everybody wins. Well, everybody except the petroleum industry, but that’s another discussion.

Can a Shift to Electric Cars Save Utilities?

The answer to this question is a bit complicated. The Energy Information Administration (EIA) states that transportation energy is the second largest consumer of energy in the U.S, right behind electric power generation. However, a predictable 93% of that power comes from petroleum products. A recent post by the Edison Electric Institute (EEI) claims that EV’s could provide the load growth that utility companies so desperately need. EEI published a post on Transportation Electrification back in 2014. This post details how EV’s could benefit all parties involved, society included, if we moved from petroleum powered vehicles to battery powered ones.

Between 2007 and 2013, retail sales of electricity in the United States across all sectors dropped 2%. In addition, the American Society of Civil Engineers gave America’s energy infrastructure a D+ grade in their 2013 report card and estimated a 3.6 trillion dollar investment needed by 2020.

–Transportation Electrification, EEI

However, there are some foreseeable problems with a large scale shift to EV’s. One being that peak demand times could be significantly increased by people charging their EV’s. From what we notice today, EV owners typically charge their vehicles when they get home from work. Makes sense, right? You get home, plug in your car, and go inside to watch football and chill out for a while. The only issue with that is that utilities already see peak load times around these hours, so adding even more demand during these times could prove costly and difficult for utilities to handle. Some utilities, including Alabama Power, are hoping to fight this by offering qualifying EV owners rate incentives if they charge their vehicles in off-peak hours, which, if done correctly, could actually benefit grid stability and efficiency.

“Alabama Power offers an optional rate rider for customers with a Plug-in electric vehicle (PEV). The rate rider allows customers to charge their electric vehicle at a discounted rate during off-peak hours of 9 p.m. to 5 a.m. To qualify for eligibility, a customer must own a PEV that is manufactured primarily for use on public streets, roads, and highways. Electric scooters, electric bicycles, golf carts, and motorized electric wheelchairs are not included.”

California’s Shift

EEI claims that a large scale electric transportation shift would benefit the electric vehicle industry, the consumer, the environment, and especially utilities who need to see a significant rise in load growth. As we know, electric vehicles have significantly lower carbon emissions that damage the atmosphere, save the consumer money on gas, and would cause a considerable rise in electric demand for utility companies.

California is already making notable efforts in regards to filling it’s streets with electric vehicles. The California Public Utilities Commission (CPUC) received several proposals from different companies who wish to accomplish different goals in expanding their fleets to exclusively EV’s and installing thousands of new EV charging stations. The proposals are filed under California’s Zero-Emission Vehicle Program that plans to propagate a utility infrastructure to support 1 million Ev’s by 2020. The state hit 250,000 in late 2016.

The proposals approximate to 1 billion dollars in funding. If granted, tens of thousands of charging stations would be installed in California airports, ports, warehouses, and residencies. The Pacific Gas and Electric Company (PG&E) is seeking $253 million for three efforts: “expanding electrification for fleets with medium- and heavy-duty vehicles, responding to consumer demand for fast-charging stations, and exploring new uses for vehicle electrification through five, one-year projects.”

Vehicle Electrification and Alabama

Alabama faces one big problem with the electrification of its transportation industry: charging. Alabama is all but void of any charging facilities that EV’s so desperately need. If utilities are truly depending on EV’s for the load growth that they need, then charging station projects would have to come soon.

Additionally, Alabama needs to take a hard look at its policy in the transportation policy to encourage growth in electric transportation. These changes could be everything from building codes at the local level that require installation of chargers for large destinations to the Alabama Department of Environmental Management (ADEM) using Volkswagen settlement money to build the infrastructure for heavy duty trucks.

As you can see from California’s example, where energy efficiency and renewables have stunted electric demand growth, utilities are making aggressive moves to electrify transportation. Regulators are working with electric utilities to build the shared infrastructure while keep the market open to private sector innovations. We hope Alabama will follow suit.