Maritime Electric's conservation plan mostly rejected by IRAC

The Island Regulatory and Appeals Commission has pulled the plug on the two most significant proposals in Maritime Electric's conservation strategy. 

The $11-million, five-year plan, which the utility filed in June, proposed to spend $6-million on $5 rebate coupons to encourage customers to buy LED light bulbs, and another $4-million to offer incentives to homeowners to install energy efficient heat pumps. The company argued the costs to rate payers would be mostly offset by savings through lower electricity use.

Maritime Electric said these proposals would reduce energy use each day, but the reduction could be as much as four per cent, or 10 megawatts, on the day Islanders use the most electricity, which usually happens in early January. 

Mark Lanigan is in charge of electricity regulation for IRAC. He says the commissioners decided not to approve these proposals after receiving comments from energy experts and members of the public critical of the cost of the plan and the likelihood of it succeeding. 

"The commission felt it needed to take another look at the whole area of energy conservation programs out there. What's going on in other areas," said Lanigan. "Maybe have the company take that into consideration and re-file a new plan for commission consideration." 

Consultant will help search for alternatives 

Lanigan said IRAC plans to hire a consultant with expertise in electricity conservation to explore other options. That advice will be included in an order IRAC will give the utility to help guide its planning. 

According to Lanigan, this is the first time commissioners have denied plans submitted by Maritime Electric in his 10-year history with the regulator.

Maritime Electric spokesperson Kim Griffin said the utility felt it had worked hard to come up with a strategy that would save electricity but not cost customers too much.

"We were really trying to balance something that we thought was achievable with a minimal rate impact," said Griffin. "Part of the process said that 'No, we're not happy with that' so we're going back to the drawing board."

Regulator did approve utility's outreach activities 

The regulator did approve $837,500 to be spent over five years for a public outreach campaign that Maritime Electric said will encourage customers to reduce their energy use. Griffin said new programming will likely begin to roll out in January that could include seminars, advertising and promotions. 

Griffin said the utility still hopes to encourage customers to switch to LED bulbs, which use a quarter of the electricity of incandescent bulbs. She also said the utility wants to inform homeowners interested in heat pumps to only install energy efficient models.

IRAC expects Maritime Electric will file a new conservation plan by the spring.