(The Center Square) — The Louisiana Public Service Commission voted on Wednesday to terminate its contract with APTIM, the administrator of the state’s new energy efficiency program and effectively pausing the program’s rollout just months after it was approved.

It was approved by a 3-2 vote at the commission’s regular meeting.

The move halts APTIM’s $25 million agreement to oversee statewide energy conservation efforts but leaves the broader energy efficiency program technically intact for now. Commissioners emphasized that Louisiana’s existing energy efficiency efforts, including those run independently by utilities, will continue through the end of the year.

Commissioner Eric Skrmetta introduced the motion to start the clock on canceling APTIM’s contract while allowing for flexibility to rework or replace the program before the next commission meeting in May.

The commission’s legal counsel clarified that the motion allows room for future modifications, including the possibility of keeping a third-party administrator model or shifting toward utility-led or hybrid approaches.

The statewide program was intended to regulate and streamline energy efficiency efforts across Louisiana, with a goal of cutting consumption by 0.4% in the first year and ramping up to 0.5% annually thereafter.

APTIM was selected in September after beating out other firms like TRC and Frontier in a competitive bidding process.

However, from the outset, the contract drew skepticism over its cost and whether it added unnecessary oversight in a state where some utilities already manage their own conservation efforts.

With the contract officially on track for termination and commissioners expected to revisit the issue in May, the future of statewide energy efficiency regulation in Louisiana remains uncertain. Commissioners say all options are back on the table — including starting from scratch.

Some groups criticized the move.

“This is a betrayal of the process and the people,” said Logan Burke, the executive director of the Alliance for Affordable Energy, in a news release. “There is no justification for today’s reversal, and the consequences will be felt by Louisiana residents and businesses on every utility bill. Energy efficiency programs are one of the most cost-effective tools for lowering energy bills and reducing grid strain.

“The TPA model the Commission scrapped today is more cost-effective than any previous approach and is projected to deliver 6 times the energy savings at nearly half the cost per kilowatt hour,.”