Louisiana Public Service Commission
POST OFFICE BOX 91154
BATON ROUGE, LOUISIANA 70821-9154
Telephone:
COMMISSIONERS
(225) 342-4427
Eric F. Skrmetta, Chairman
District I
Clyde C. Holloway, Vice Chairman
District IV
Foster L. Campbell
District V
Lambert C. Boissiere
District III
Scott A. Angelle
District II
EVE KAHAO GONZALEZ
Executive Secretary
BRANDON M. FREY
Executive Counsel
JOHNNY E. SNELLGROVE, JR
Deputy Undersecretary
September 12, 2014
The Honorable Gina McCarthy, Administrator
United States Environmental Protection Agency
EPA Docket Center
Mail Code 28221T
Attention Docket ID No. EPA-HQ-OAR-2013-0602
1200 Pennsylvania Avenue, N.W.
Washington, D.C. 20460
RE:
DOCKET ID No. EPA-HQ-OAR-2013-0602
Request for Extension of Time for Public Comment on
Carbon Pollution Emission Guidelines for Exiting
Stationary Sources: Electric Utility Generating Units
79 FR 34830 (June 18, 2014)
LPSC Docket No. R-33253
Dear Administrator McCarthy:
By way of this letter, the Staff of the Louisiana Public Service Commission (“LPSC” or
“Commission”) respectfully requests a sixty (60) day extension of the public comment period in
the above-referenced NOPR (hereinafter “CPP”). We believe that, at a minimum, this extension
is necessary to afford parties a meaningful opportunity to comment given the complexity of this
rule and its long-range implications. Preliminary indications are that the CPP will require vast
changes in traditional public utility regulation and is based on many erroneous assumptions and
modeling errors. It is in the best interest of the EPA and all parties involved for parties to have
sufficient time to review and respond to the proposed rule and its over six hundred (600)
supporting documents. The benefits of this delay will far outweigh any detrimental impact it
may have.
The Commission is made up of five (5) elected members. The Commission has
constitutional jurisdiction over public utilities, including four (4) investor-owned electric
utilities1 and twelve (12) electric cooperatives in the state. The Commission is dedicated to
serving the public interest by ensuring that regulated entities provide safe, reliable, and
1 Cleco Power, LLC, Entergy Gulf States, Louisiana, L.L.C, Entergy Louisiana, LLC, and Southwestern Electric
Power Company (“SWEPCO”), a division of American Electric Power (“AEP”).
A Century of Public Service
Hon. Gina McCarthy
September 12, 2014
Page 2
reasonably priced services for Louisiana citizens. In order to fulfill this mission and adequately
address the far-reaching regulatory implications of the CPP, the Commission must necessarily
obtain input from many different stakeholders prior to formally taking a position on any
proposed rule before the EPA.
The Commission’s task with respect to environmental regulations of this magnitude is
monumental. Not only must we familiarize ourselves with the nuances of the Clean Air Act, but
we must also accurately ascertain the operational and ratemaking impacts of the CPP on electric
utilities and their customers. Of particular concern to members of this Commission is that while
the CPP purports to reduce nationwide emissions between 2005 and 2030 by 30%, Louisiana has
been saddled with a nearly 40% reduction from 2012 to 2030. This unexplained discrepancy has
caused much concern among industry and regulators in Louisiana. Given that only a small
portion of Louisiana’s fuel mix is made up of coal and multiple steps have been taken by
industry and regulators in Louisiana over the past few years to add renewable and energy
efficient resources, the onerous requirement is quite perplexing. The state is seemingly being
penalized for diversifying its generation portfolio with cleaner, more efficient generation.
In order to analyze the reasoning behind this significant discrepancy, we are scrutinizing
data on all covered generators, including some that are not regulated by the LPSC. In addition,
we are evaluating the CPP’s building blocks to determine whether or not EPA’s modeling
assumptions were accurate and lead to practically achievable results. As the only statewide
public utility commission in Louisiana, it is possible that enforcement of an implementation plan
under the CPP would fall heavily our shoulders2. Therefore, it is incumbent upon us to ensure
that our comments include sufficient consideration of all practical implications of the CPP and
avoid overburdening an already budget-strapped regulatory agency. Last but not least, we must
ensure that the CPP’s requirements will not unnecessarily harm some of the country’s most
vulnerable citizens3.
As an administrative body, the LPSC is required, just as is the EPA, to enact rule changes
by notice and comment. The LPSC instituted a rulemaking shortly after the issuance of the CPP
in order to obtain stakeholder input and other information necessary in our evaluation and the
development of our comments to the EPA. While we have received a significant number of
comments that we are in the process of reviewing, some of our utilities are conducting feasibility
studies that that they will report on at a later date. For example, Cleco Power, LLC is in the
process of performing evaluations on the feasibility of improvements to two of its coal plants.
We cannot adequately comment on the proposed rule until we fully analyze the impacts on our
regulated utilities and their ratepayers.
It is necessary, not only for the benefit of those commenting, but for the drafters of the
rule that all relevant information is considered by the EPA prior to the issuance of a final rule of
2 We would note that the New Orleans City Council regulates Entergy New Orleans, and neither us nor the City
Council regulate municipal electric providers.
3 According to the United States Census Bureau, 18.7% of Louisiana citizens lived below the poverty level from
2008-2012. http://quickfacts.census.gov/qfd/states/22000.html