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The Arkansas Public Service Commission (“PSC”) issued Order No. 43 (“Order”) on July 13th addressing Arkansas utility energy savings targets for PY 2020-2022. See Docket No. 13-002-U.

A number of organizations (including utilities) were part of a group denominated Parties Working Collaboratively (“PWC”) to develop recommendations for 2020-2022 energy saving targets.

The PSC order states that the PWC was unable to reach a consensus regarding the appropriate targets for gas and electric utilities. As a result, the PSC notes that two different recommendations were submitted.

Recommendation No. 1 was submitted by:

• PSC Staff
• Consumer Utilities Rate Advocacy Division of the Arkansas Attorney General’s Office (CURAD)
• Entergy Arkansas, Inc. (EAI)
• Southwestern Electric Power Company (SWEPCO)
• Oklahoma Gas & Electric Company (OG&E)
• The Empire District Electric Company (Empire)
• CenterPoint Energy Resources Corp. d/b/a CenterPoint Energy Arkansas Gas (CenterPoint)
• Black Hills Energy Arkansas, Inc. (f/k/a Source Gas Arkansas Inc.) BHEA
• Arkansas Oklahoma Gas Corporation (AOG)

The Parties stated to be supporting Recommendation No. 2 included:

• Arkansas Advanced Energy Association, Inc. (AAEA)
• National Audubon Society, Inc. (Audubon)
• The Sierra Club

Recommendation No. 1 is described as proposing a flat net savings goals for the natural gas and electric utilities utilizing actual 2018 sales as a baseline (as adjusted for approved Self-Direct customers for Plan Years 2020-2022.

Recommendation No. 2 Parties are stated to not object to Recommendation No. 1 parties’ proposal on savings targets for gas utilities. However, Recommendation No. 2 is stated to ask the PSC to establish an electric savings target of 1.20 percent (utilizing weather-adjusted actual retail 2018 sales as a baseline/adjusted for approved Self-Direct customers for 2020-2022).

The PSC orders and directs:

1. For PY 2020-2022, the utility energy savings targets shall be 1.20% of 2018 baseline sales as adjusted for Self-Direct customers for electric utilities and 0.50% of 2018 baseline sales as adjusted for Self-Direct customers for natural gas utilities.
2. The incentive structure shall remain as it currently exists for the next three-year program cycle.

A copy of the Order can be downloaded here.