Mississippi and The Clean Power Plan Health Concerns The American Lung Association (ALA) estimates that out of the 2.9 million Mississippi residents, 1 million are at risk for developing serious respiratory conditions due to air pollution and ground-level ozone.i o Conditions include adult and pediatric asthma, cardiovascular (CV) disease, chronic obstructive pulmonary disease (COPD), and diabetes, all with an inherent potential for fatalityii o DeSoto County residents were exposed to 5 day(s) above the National Ambient Air Quality Standards (NAAQS) for daily 8-hour maximum ozone concentration in 2010iii Disproportionate Harm The poverty rate near coal plants in Mississippi is 26.5%, which is more than twice the national average (12.9%)iv Economic Benefits In 2013 MS Public Service Commission published Rule 29, establishing Mississippi’s first state-wide utility energy efficiency programsv o The rule allows utilities to tailor energy efficiency programs to the individual needs of each customer class, and will lead to helping improve grid reliability to meet energy demands, lower energy bills, and open the door to new economic and workforce development opportunitiesvi http://www.psc.state.ms.us/executive/rules/rule29.html (full rule) The MS economic impact statement ("EIS") indicated that energy efficiency initiatives under Rule 29 could more than offset the 3% forecasted growth in energy consumption from 2010 to 2030vii Energy efficiency initiatives could create 6,900 jobs annually by 2020 and 9,500 jobs annually by 2030.viii EIS found that the rule is expected to have a positive impact on small business and that the savings would be cost-effective based on the Total Resource Cost Test (TRC)ix o The TRC is one of 4 cost-benefit tests established by the California Standards and Practices Manual: Economic Analysis of Demand Side Programs and Projectsx The American Council for an Energy Efficient Economy (ACEEE) found that efficiency could cost-effectively meet 12.8% of the state's electricity demand by 2025, and by that time, these savings will result in $4.3 billion in net economic output:xi o $1.1 billion in wages, $825 million in income to small business owners, 32,800 person-years of employment, and increased state and local tax revenue by $80 million.xii Utility Costs & Reliability Energy efficiency is the least-cost resource even without considering carbon dioxide emissions or the CPP: xiii o ACEEE modeled energy efficiency portfolios for MS in 2013 (Research Report E13M) and found that the cost would be about 2-4 cents per kWh, compared to an avoided cost of electricity supply of 4-9 cents per kWh through 2025xiv Mississippi's utilities have shown that they can meet the EPA energy efficiency target: o In the calculation of building block number four (Demand Side Management), EPA assumes that Mississippi can, ramping up from 2017, achieve energy efficiency impacts of 1.5% of prior year retail sales from 2025-2030xv In Mississippi, Alcorn County Electric Power Association achieved 1.22% savings in 2013, more than the EPA suggests the state capture in 2022.xvi Based on the savings projected in the companies' QuickStart Plans, and the energy savings achieved by Mississippi's electric cooperatives, the state is likely to be ahead of schedule in meeting the energy savings target proposed by the EPA.xvii o MSPC approved QuickStart Energy Efficiency Plans in 2014 proposed by Entergy Mississippi Inc. (EMI) and Mississippi Power Company (MPC) in compliance with the MPSC's Rule 29. xviii o The QuickStart Plans allow for Mississippi to get a head start on complying with the CPP energy efficiency goals, and will enable customers to save money while reducing carbon emissions.xix EMI and MPC projected that the companies' QuickStart Plans will achieve incremental savings in 2016 of 0.26% and 0.17%, respectivelyxx o [The EPA has called for Mississippi to achieve incremental energy savings of just 0.07% by 2017, with a 0.20% per year pace of improvement until 2025]xxi Energy Potential Solar energy is Mississippi's most abundant renewable energy resource. NREL estimates that Mississippi has a utility-scale solar PV technical potential of nearly 2,900 GW, or over 9,000% of the state's 2012 net generation.xxii o The U.S. Department of Energy reported Mississippi as having over one GW-ac by 2030, or enough to meet about 3.3% of the state's 2012 net generation.xxiii NREL now estimates Mississippi may contain well over 25,000 MW (25 GW) of wind energy potential as well with over 40% capacity factorsxxiv Mississippi may also have additional out-of-state wind energy resources available. Two high voltage direct current (HVDC) transmission lines, each capable of carrying several thousand MW of new wind energy capacity, are planned to connect wind energy resources from Oklahoma and Texas with Memphis, Tennessee and northern Mississippixxv o Due to the higher wind speeds and new technologies, the cost of wind energy resources from these HVDC projects will be extremely cost competitive.xxvi FOR MORE INFORMATION Dr. Jalonne White-Newsome, Director of Policy WE ACT for Environmental Justice www.weact.org Copyright © 2015, WE ACT for Environmental Justice i http://www.stateoftheair.org/2015/states/mississippi/ ibid iii http://ephtracking.cdc.gov/InfoByLocation/ iv http://earthjustice.org/news/press/2011/communities-of-color-poverty-bear-burden-of-air-pollution v http://www.seealliance.org/wp-content/uploads/MS_QuickStartSummary-Jan-2015-FINAL.pdf vi Ibid vii http://www.psc.state.ms.us/InsiteConnect/InSiteView.aspx?model=INSITE_CONNECT&queue=CTS_ARCHIVE Q&docid=339436 viii Ibid ix Ibid x http://www.seealliance.org/wp-content/uploads/MS_QuickStartSummary-Jan-2015-FINAL.pdf xi http://aceee.org/press/2013/11/mississippi-emerging-regional-leader xii http://www.psc.state.ms.us/InsiteConnect/InSiteView.aspx?model=INSITE_CONNECT&queue=CTS_ARCHIVE Q&docid=339436 xiii Ibid xiv Ibid xv Ibid xvi Ibid xvii Ibid xviii Ibid xix Ibid ii xx Ibid Ibid xxii Ibid xxiii Ibid xxiv Ibid xxv Ibid xxvi Ibid xxi