2010 Report - Pennsylvania Public Utility Commission

Energy Efficiency and ConservationAct 129Act 129 of 2008 31 added Section 2806.1 to the Public Utility Code requiring that the Commissionadopt an energy efficiency and conservation program for the reduction of energy consumption andpeak demand within the service territory of each EDC with at least 100,000 customers. 32 Sales areto be reduced 1 percent by May 31, 2011, and 3 percent by May 31, 2013. Peak demand is to bereduced 4.5 percent by May 31, 2013.Based on forecast growth data, consumption reduction goals total 1.5 million MWh in 2011 and4.4 million MWh in 2013. Peak demand reduction goals total 1,193 MW for 2013. These goalswere adopted by the Commission on March 26, 2009. Total program costs are estimated at $1billion. 33 See Table 3.Table 3 Consumption and peak demand reduction goals and costCompany 1% (MWh) 3% (MWh) 4.5% (MW) Total Plan CostDuquesne 140,855 422,565 113 $78,183,806Met-Ed 148,650 445,951 119 $99,467,568Penelec 143,993 431,979 108 $91,898,976Penn Power 47,729 143,188 44 $26,639,136PPL 382,144 1,146,431 297 $246,005,504PECO 393,860 1,181,580 355 $341,580,634West Penn 209,387 628,160 157 $94,249,872Total 1,466,618 4,399,854 1,193 $978,025,496On Jan. 15, 2009, the Commission adopted an Implementation Order to establish the standardseach program must meet and provide guidance on the procedures to be followed for submittal,review and approval of all aspects of EDC plans. Programs are to be evaluated using a totalresource cost test, based on the California Manual, as modified by the Commission. 34 Each planmust include a proposed cost recovery tariff mechanism. Plans were filed on July 1, 2009. 35 TheCommission approved the plans, with modifications, in late October 2009, requiring the filing ofrevised plans within 60 days, which were subsequently approved. 36Act 129 also requires an increase in the percentage share of Tier I alternative energy resources tobe sold under the provisions of Act 213. The types of alternative energy resources that qualify asTier I resources were expanded to include specific categories of low impact hydropower andbiomass energy. 37 A Final Order was adopted on May 28, 2009. 3831 Energy Efficiency and Conservation Program, signed by Gov. Rendell on Oct. 15, 2008.32 66 Pa.C.S. § 2806.1.33 Program costs are from individual plans and generally represent two percent of revenues as of Dec. 2006 multipliedby four to reflect the four-year duration of the plans.34 Docket No. M-2009-2108601.35 Docket No. M-2008-2069887.36 Docket Nos. M-2009-2093215, M-2009-2093216, M-2009-2093217, M-2009-2093218, M-2009-2092222, M-2009-2112952 and M-2009-2112956.37 See Act 129 of 2008, Section 5, codified in the Pennsylvania consolidated statutes as 66 Pa. C.S. § 2814.38 Docket No. M-2009-2093383.Electric Power Outlook for Pennsylvania 2009-2014 17