KPSC approves DSM filing with minor modifications

Posted | October 8, 2018

On Oct. 5, the Kentucky Public Service Commission approved with some modifications LG&E and KU’s next generation of energy efficiency offerings, which will take effect Jan. 1, 2019, through Dec. 31, 2025.

"We appreciate the commission's ruling, which will allow us to extend many of our popular and valuable Energy Efficiency programs for customers," said Greg Lawson, manager, Energy Efficiency Planning and Development. "We put a lot of work into this filing to make sure we're doing the right thing for our customers."

The commission's ruling allows LG&E and KU to extend five of the company's programs that benefit customers, especially some of our most vulnerable customers; offer cost-effective energy efficiency choices; and provide programs to engage industrial customers for the first time.

As proposed by LG&E and KU, the following customer programs will continue with modifications in 2019:

  • WeCare
  • Residential Demand Conservation
  • Large Nonresidential Demand Conservation
  • Nonresidential Rebates

In its ruling, the KPSC also extended the company's AMS Early Adoption Program.

Because certain programs were no longer cost-effective, the KPSC approved the company's plans to allow the following customer programs to expire at the end of 2018:

  • Home Energy Rebates
  • Fridge & Freezer Recycling
  • Home Energy Analysis
  • Smart Energy Profile
  • Children's Energy Education Program
  • Customer Education and Public Information

With these programs expiring, residential customers in particular will see a cost savings on the DSM line item on their monthly bill. Based on a preliminary review, the company anticipates residential customers could see an annual bill savings between $26-$33 in 2019, compared to 2017 demand-side management rates.

When comparing overall costs, the company anticipates this new portfolio of DSM programs will drop from roughly $45 million to about $14 million per year. 

In its ruling, the KPSC determined the KSBA School Energy Managers Program (SEMP), which provides energy efficiency assistance to schools by providing funds to hire energy managers, was not cost-effective. SEMP was not approved to continue.  

Over the years, LG&E and KU's program offerings have continued to evolve — some programs have expired because they're no longer cost-effective to customers, some have been extended, and others have been introduced as new programs. These changes are based on factors such as customers' energy-use habits, improvements to industry standards and customer feedback.