Joplin Globe: Empire to explore energy efficiency
As part of its proposed merger with a subsidiary of Algonquin Power & Utilities Corp., Empire District Electric Co. has agreed to explore a number of energy efficiency programs, according to documents filed with the Missouri Public Service Commission.
The PSC approved the $2.4 billion acquisition this past week, but regulatory approval is still needed in Kansas and Arkansas for the transaction to be completed. The merger is on track for a closing in early 2017.
After the proposed merger was announced, several groups who stood to be affected by it applied to intervene, giving them the opportunity to express concerns over the transaction. Throughout the course of negotiations, all parties that filed to intervene eventually entered into agreements with Empire and Algonquin’s subsidiary, Liberty Utilities.
One of those agreements — filed jointly by Empire, Liberty, the Missouri Division of Energy and Renew Missouri, a nonprofit organization dedicated to renewable energy — spells out four ways Empire has agreed to explore more energy efficient practices and technologies.
“When you add up all these different agreements, it really is meaningful,” said P.J. Wilson, director of Renew Missouri.
Andrew Linhares, staff attorney for Renew Missouri, called the commitments “fairly substantial.”
“As part of our settlement in the recent Missouri rate case, Empire has agreed to evaluate and propose updates to our current commission-approved portfolio of energy efficiency programs,” said Julie Maus, director of corporate communications for Empire. “Empire’s energy efficiency programs have been in place since 2007 and generated significant energy and cost savings for customers. The merger settlement agreement simply restated this item.”
Empire has agreed to file an application for an energy efficiency portfolio under the Missouri Energy Efficiency Investment Act, which encourages utility companies to invest in energy-efficient programs by allowing incentives to recover costs from those investments from customers if the programs have been approved by the PSC. The program must also result in energy savings and prove to be “beneficial to all customers in the class for which the program is proposed,” according to a Missouri Senate bill summary.
The agreement indicates Empire will apply for a portfolio within a year of the transaction’s close.
“That allows them to offer their customers rebates for high-efficiency appliances, for AC units that are more efficient than normal,” and other programs, Linhares said.
Empire has also agreed to “review and consider the viability” of offering a community solar program, the agreement filed with the PSC says. As part of a community solar program, Empire customers would have the opportunity to purchase electricity from the company generated by solar panels. Linhares said purchasing solar energy is currently more expensive than retail prices, but that with increasing energy costs, he expects the difference to even out “within five years, probably less.” Under terms of the agreement, Empire will submit a proposal to the PSC within a year after the merger is finalized.
