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Commission splits on hiring of statewide EM&V contractor; Tetra Tech chosen amid objections

Public Service Commission · March 27, 2025
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Summary

The PSC approved hiring Tetra Tech as the statewide EM&V contractor for the energy-efficiency docket after a 3–2 vote, but several commissioners raised concerns about high bid amounts, potential rate impacts, vendor briefings and residential program consequences.

The Commission voted 3–2 to approve staff’s selection of Tetra Tech as the evaluation, measurement and verification (EM&V) contractor for the statewide energy-efficiency program after a contentious discussion about the scope and price of the work.

Staff presented four qualified bidders with budgets ranging from about $4.5 million to $10.9 million for EM&V services. Chair moved to select Tetra Tech; Commissioner Schmata objected on record, saying the proposed contract amounts were "extraordinarily high" and that he could not “in good conscience vote on this item” without more detail on deliverables and rate impacts.

Commissioner Lewis and other supporters said staff conducted interviews and reference checks and that Tetra Tech already provides EM&V services to utilities, which would avoid duplicative administrative costs. "I believe it's important that we move forward in hiring an EMV contractor," Commissioner Lewis said, adding that he had met with bidders and found thorough proposals.

The public comment period included a constituent who said utility-contracted home visits had resulted only in distribution of bulbs and minor measures; a residential contractor urged the Commission to consider impacts on rural and gas-heated homes and to preserve vendor participation. An energy utility representative confirmed Tetra Tech provides services in other programs and that various utilities use outside EM&V vendors.

After trustee discussion and a roll call, the Commission approved the selection by a three-to-two vote. Commissioners voting no publicly flagged the proposal’s price and raised the possibility of double-counting administrative costs if the contractor already works for utilities.

The order initiating contract negotiations notes that the vote starts negotiations and that contracts will include termination provisions (30-day written notice) and further negotiation on scope and price before execution.