The state's power regulation agency launched an initiative Wednesday to consider a requirement for Louisiana utilities to purchase a portion of their energy from renewable sources, such as fuel from biomass or solar, wind and hydroelectric power.
Exploring a policy that has been adopted by nearly half the states in the nation, the Louisiana Public Service Commission started an inquiry into the cost and benefits of mandating a Renewable Portfolio Standard, in which utilities would face a deadline in procuring a certain percentage of renewable source energy as opposed to non-renewable oil and gas fuel.
Proponents, including the New Orleans-based Alliance for Affordable Energy, say the policy makes sense for the economy, the environment and for stability in energy prices. The five elected commissioners were supportive of the inquiry but said any mandates would have to be fair to companies and customers and tailored to the energy sources best available in Louisiana.
Commissioner Lambert Boissiere, D-New Orleans, proposed the move, which initially is conceived as a 5 percent renewable sources goal by 2010 with subsequent increases.
The commission staff will prepare a report and eventually a conference will be scheduled with other state agencies to examine the proposal.
Commissioner Jimmy Fields, R-Baton Rouge, said he thinks the policy, if adopted, could be implemented by a vote of the commission rather than by a new state law.
In other developments Wednesday, the commission heard a report from an independent analyst suggesting that upgrades in Louisiana's electricity transmission lines could dramatically improve efficiency and reliability resulting in long-term cost savings for power customers.
Entergy Corp. is considering transmission improvements and the commission would have to approve whatever capital costs would be recouped from customers.
According to a report delivered to the commission by the independent coordinator of transmission, an industry analyst contracted to provide a systems evaluation, major transmission projects under consideration could start paying back customers for their investment in as little as two years, a shorter time frame than some had thought possible.
