Utility panel declares first energy emergency

The Louisiana Public Service Commission on Tuesday unanimously declared the state's first "energy emergency," a move that allows elderly, low-income and disabled customers to defer paying portions of their electricity bills for as long as a year. The commission also called on the state to appropriate $20 million for energy assistance and efficiency programs.

A 2001 law gave the PSC the authority to declare an energy emergency when the price of natural gas, the fuel used to generate electricity at many utilities around the state, increases sharply as it has in recent months.

Utilities pass on the cost of buying natural gas to customers through a fuel adjustment charge tacked onto bills. This summer, those fuel adjustment charges spiked at the same time Louisianians were consuming more power than at any other time of the year.

Commissioner Foster Campbell called for the emergency declaration because the state, which taxes the oil produced in Louisiana, is making a fortune in taxes from the same high energy prices that are causing residents pain.

"The state is blessed and the people are cursed because the natural gas prices are going through the roof," Campbell said. "If we're getting rich off of severance taxes from oil and gas, we should share some of the money back with the people who are having such a hard time paying their bills."

The energy emergency allows certain customers to defer unusual portions of their bills. Companies set the rules on how to determine what's abnormally high, but in general, if elderly, low-income or disabled customers who paid $200 for electricity in August last year get a bill for $300 this August, they can defer the $100 difference.

--- Funds for federal program ---

Campbell also put forth a resolution calling on the state to contribute some of the oil and gas tax money it is earning to the federal Low Income Home Energy Assistance Program. Federal financing for the program is in decline, and Louisiana is one of only nine states that does not the supplement the program.

Campbell's second resolution also proposes increasing money for energy efficiency programs at the state Department of Natural Resources that offer loans to insulate homes or cash rebates for people who do so on their own.

On Monday, Gov. Bobby Jindal said he supported the energy emergency declaration and pledged to look for funding. He said he thinks he has found $10 million for the energy efficiency efforts, but is still looking for money for the low-income energy assistance program.

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