Thursday, March 20, 2014

PUC Releases Act 129 Phase I Final Annual Report And Assessment Of Compliance

The Public Utility Commission Thursday released the final report detailing efforts by seven electric distribution companies to meet energy reduction requirements under Act 129 of 2008.
The Commission voted 5-0 to release the Statewide Evaluator’s Phase I Final Annual Report, which outlines EDCs’ implementation of energy efficiency and conservation plans.  
Act 129 required EDCs with more than 100,000 customers to file, by July 1, 2009, EE&C plans to reduce electric consumption by at least 1 percent of the EDC’s expected load for the period from June 1, 2009, through May 31, 2010, adjusted for weather and extraordinary loads.
A 1 percent reduction was to be accomplished by May 31, 2011.  By May 31, 2013, the EDCs were required to reduce their total consumption by a minimum of 3 percent, as well as its peak demand by a minimum of 4.5 percent. Under the law, companies that did not meet the reduction requirements could be fined up to $20 million.
According to the report:
— Duquesne Light Co. (Duquesne), Metropolitan Edison Co., PECO Energy Co., Pennsylvania Electric Co., Pennsylvania Power Company  and PPL Electric Utilities Corp. are in compliance with the three reduction targets.
— Duquesne, Met-Ed, PECO, Penelec, Penn Power, PPL and West Penn Power Co. are in compliance with the additional requirement to obtain 10 percent of required reductions in consumption and peak demand from governmental, educational, and non-profit entities, as well as the requirement to offer measures to low-income in proportion to their share of electric usage.
— West Penn is in compliance with the 3 percent consumption reduction and 4.5 percent peak demand reduction targets.
— West Penn’s compliance with the May, 31, 2011, 1 percent consumption reduction target, is being referred to the Commission’s independent Bureau of Investigation and Enforcement (I&E) for investigation and further proceedings if necessary.
Act 129 also requires the Commission to adopt additional incremental reductions in consumption by November 2013, and every five years thereafter, if program benefits exceed costs.
On August 2, 2012, the Commission adopted a Final Implementation Order on the future of EE&C programs established under Act 129.  As part of the adoption of this Order, the Commission adopted a three-year Phase II Act 129 EE&C Program that began on June 1, 2013, and will operate through May 31, 2016.
Other aspects of the Commission’s Act 129 implementation process addresses EDC and default service provider responsibilities; conservation service providers; smart meter technology; time-of-use rates; real-time pricing plans; default service procurement; market misconduct; alternative energy sources; and cost recovery.
For more information, visit the PUC’s Act 129 webpage.

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