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 utilityfiled in June, proposedto spend $6-million on$5 rebate coupons to encourage customers to buyLED light bulbs, and another $4-million to offerincentives to homeownersto install energyefficient heat pumps.The company argued the costs to ratepayerswould be mostly offset by savings through lower electricity use.

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

Mark Laniganis in charge of electricity regulation forIRAC. He says the commissioners decided not to approve these proposalsafter receiving comments from energy experts and members of the public critical of the cost of the planand 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-filea new plan for commission consideration."

Consultant will help search for alternatives

Lanigan said IRACplans to hire a consultant with expertise in electricity conservation to explore other options. That advice willbe included in an order IRAC willgivethe utility to help guide its planning.

According toLanigan, thisis the first time commissioners have denied plans submitted by Maritime Electric in his 10-year history with the regulator.

Maritime Electric spokespersonKim Griffin said the utility felt it had worked hard to come up with a strategy that would save electricity but notcost 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 spentover five years for a public outreach campaign that Maritime Electric saidwill encourage customers to reduce their energy use. Griffin said new programming will likely begin to roll out in January thatcould include seminars, advertising and promotions.

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

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