By Amanda Durish Cook

Ameren Illinois may have hit a roadblock in its efforts to lower its energy efficiency targets prescribed under a new law.

Illinois Commerce Commission Administrative Law Judge Jan Von Qualen on Tuesday issued a preliminary order (17-0311) denying the utility’s request to lower its energy efficiency goals established under the state’s recently enacted Future Energy Jobs Act (FEJA). The ICC is expected to render a final decision on the request by mid-September.

Under the law, Ameren is required to meet 9.8% in cumulative annual energy savings by 2021, but the utility is planning for 8.24% in savings. The utility has allocated $114 million per year for the program, the maximum budget under the law, but claimed it still could not meet the savings goal. A maximum budget triggers the ICC’s authority to reduce annual incremental savings goals.

“Based on the record, the commission finds that [Ameren] should modify its plan in a manner that ensures cost efficiencies and serves the customers, including low-income customers, to the maximum extent practicable throughout its service territory,” Von Qualen said. “The commission will not modify the [annual savings] goal absent a showing that every attempt has been made to meet the goal and it cannot be met.”

The Illinois Clean Jobs Coalition, along with other environmental and consumer activists, last month held a press conference to criticize Ameren for setting low energy efficiency goals and to urge state regulators to reject the utility’s four-year efficiency and demand response plan. (See Ameren Illinois Criticized for Lowered Energy Efficiency Goals.)

Von Qualen said the state attorney general’s office — as well as the Citizens Utility Board, Environmental Defense Fund and the Natural Resources Defense Council — provided multiple suggestions in testimony regarding how Ameren could meet its annual savings goal “while staying within the budget cap.”

The judge suggested that Ameren reallocate its optional $6 million per year efficiency research and development spending to programs that actually lower costs per kilowatt-hour. She also said the utility could use a portion of the $4.7 million budgeted for air conditioners on more cost-effective programs. The judge directed Ameren to work with the Illinois Energy Efficiency Stakeholder Advisory Group, the Economically Disadvantaged Advisory Committee and the Illinois Home Weatherization Assistance Program to make better use of its required $8 million in spending on third-party energy efficiency implementation programs, instead of using national retailers and online stores.

She did approve other aspects of Ameren’s plan, including savings goals for its gas program and riders for the recovery of electric energy efficiency costs.

Ameren: No Change

Ameren defended its plan and said it has no plans to change its filing in light of the proposed order.

“We have put forth the right plan to help working families in our territory save energy and we look forward to making our case with the Illinois Commerce Commission,” Ameren Illinois spokesperson Marcelyn Love told RTO Insider.

Ivan Moreno, communications manager of the Natural Resources Defense Council, said Ameren has been heavily lobbying state legislators to lean on the ICC to approve the plan.

“This is unusual given that legislators have already debated and voted on this issue through the Future Energy Jobs Act,” Moreno said, adding that he expects Ameren to escalate efforts to get the ICC to approve the plan “despite the proposed order.”

The Illinois Clean Jobs Coalition welcomed the preliminary ruling: “As the Illinois Clean Jobs Coalition has said from the start, Ameren should be able to deliver energy efficiency programs that serve low-income communities and — at the same time — achieve the energy efficiency targets that the company agreed to under FEJA. We are hopeful that members of the Illinois Commerce Commission will agree with the judge in this case.”

The group said it looked forward to working with Ameren on a new plan “that meets the goals set forth in FEJA which can create jobs, savings and better health across Illinois and, in particular, deliver benefits to economically disadvantaged communities throughout the state.”