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New Orleans Gets Low-Income Energy Efficiency Funds

The New Orleans City Council voted August 19 in favor of NOEEP (New Orleans Energy Efficiency Programs), after the measure had gained unanimous approval in the Council Utility Committee the previous week.

The program will have an annual budget of about $5 to $7 million, supported by a charge averaging $1 per month on the electric bills of Entergy New Orleans residential customers. Commercial and industrial customers will be charged at the same rate, but their fee will be capped at $250 a month. The funds will support efficiency programs for all rate classes, with about 27 percent going to low-income energy efficiency, and an equal percentage for residential, and small commercial/government programs. Three percent will go for large industrial programs, eight percent for energy efficiency education and seven percent for low-income utility bill emergencies.

The New Orleans-based Alliance for Affordable Energy, the National Consumer Law Center, Louisiana AARP, and Total Community Action of New Orleans were instrumental in developing the program design and getting it approved.

Additionally, during the state’s last legislative session, the legislature passed a bill giving authority to the Louisiana Public Service Commission to create rules and regulations for a statewide energy efficiency and bill assistance program. "We hope that the benefits that New Orleans will receive from NOEEP will help to jumpstart the statewide program, said Micah Walker Parkin, program director of the Alliance for Affordable Energy.

According to a study from Louisiana State University, a statewide program would result in energy efficiency improvements to approximately 60,000 homes and businesses annually and would have an annual per customer total economic benefit of over $400 and result in almost 2,200 new jobs.

Source: National Consumer Law Center, Times Picayune

Page Last Updated: January 27, 2010