2010 Report - Pennsylvania Public Utility Commission

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Smart Meters and Time-of-Use RatesSection 2807(f) of the Public Utility Code 39 requires that EDCs, with greater than 100,000customers, file a smart meter technology procurement and installation plan with the Commissionfor approval. Smart meters are to be furnished upon request from a customer that agrees to pay thecost of the meter, in new building construction, and in accordance with a depreciation schedule notto exceed 15 years.A Smart Meter Procurement and Installation Implementation Order was adopted by theCommission on June 18, 2009. 40 Each smart meter plan must include a summary of the EDC’scurrent deployment of smart meter technology, if any; a plan for future deployment, complete withdates for key milestones and measurable goals; and other pertinent information. The Commissiongranted a network development and installation grace period of up to 30 months following planapproval. The EDCs filed their Smart Meter Technology Procurement and Installation Plans onAug. 14, 2009. 41 The plans were approved in April/May 2010.Smart meter technology includes metering technology and network communications technologycapable of bidirectional communication that records electricity usage on at least an hourly basis,including related electric distribution system upgrades to enable the technology. The technologymust provide customers with direct access to and use of price and consumption information.By Jan. 1, 2010, or at the end of the applicable generation rate cap period, whichever is later,default service providers with more than 100,000 customers 42 must submit at least one proposedtime-of-use (TOU) rate and real-time pricing (RTP) plan. Commission approval is due within sixmonths of submittal. These pricing options must be offered to all customers that have beenprovided with smart meter technology.On Jan. 28, 2010, the Commission approved a voluntary program where PPL Electric UtilitiesCorporation would offer a new, optional TOU rate for residential and small commercial andindustrial customers in order to satisfy a portion of the statutory obligation. 43 On June 16, 2010,the Commission approved Duquesne Light Company’s TOU and RTP Plan, to be implemented infour phases over the 2010 to 2013 period. 44PURPASection 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA) 45 was implementedto encourage the conservation of energy supplied by electric utilities, the optimization of theefficiency of use of facilities and resources by electric utilities, and equitable rates to electricconsumers. One of the ways PURPA set out to accomplish its goals was through theestablishment of a new class of generating facilities which would receive special rate and39 66 Pa. C.S. § 2807(f).40 Docket No. M-2009-209655.41 Docket Nos. M-2009-2123944 (PECO), M-2009-2123945 (PPL), M-2009-2123948 (Duquesne Light), M-2009-2123950 (Met-Ed, Penelec and Penn Power) and M-2009-2123951 (West Penn Power).42 Duquesne, Met-Ed, Penelec, Penn Power, PPL, PECO and West Penn.43 Docket No. R-2009-2122718.44 Docket No. P-2009-2149807.45 Pub. L. 95-617, Title II, § 210, 92 Stat. 3144 (16 U.S.C.A. § 824a-3(a)—(j)).18Pennsylvania Public Utility Commission
egulatory treatment. Generating facilities in this group are known as qualifying facilities (QFs),and fall into two categories: qualifying small power production facilities and qualifyingcogeneration facilities.A small power production facility is a generating facility of 80 MW or less whose primaryenergy source is renewable (hydro, wind or solar), biomass, waste, or geothermal resources. Acogeneration facility is a generating facility that sequentially produces electricity and anotherform of useful thermal energy (such as heat or steam) in a way that is more efficient than theseparate production of both forms of energy. With some limited exceptions, these facilities arealso limited in size to 80 MW.Although enacted more than 30 years ago, PURPA continues to have an impact onPennsylvania’s EDCs. The Commission’s regulations govern the purchases and sales of energybetween QFs and electric utilities. It also governs the purchases and sales of capacity andassociated energy between suppliers of electric generation and electric utilities. 46Under the provisions of purchase power agreements, utilities are required to purchase any energywhich is made available from a qualifying facility. 47 In 2009, 8,400 GWh were purchased fromindependent power producers (IPPs) and QFs, representing 5.6 percent of net energy for load.See Table 4. Contract capacity refers to the amount of the facilities’ total capacity that the EDCcontracts for; some purchases are for energy only.Table 4 2009 purchases from IPPs and QFs by Pennsylvania EDCsPurchased Percent of Contract TotalEnergy Net Energy Capacity CapacityCompany (MWh) for Load (kW) (kW)Citizens' 3,296 1.97% 0 6,000Duquesne 0 0.00% 0 0Met-Ed 2,201,773 15.29% 295,000 354,900Penelec 3,082,343 21.47% 370,350 410,850Penn Power 2 0.00% 0 10,600PPL 1,091,468 2.72% 0 152,517PECO 1,033,939 2.54% 181,000 384,082West Penn 987,023 4.66% 136 151UGI 0 0.00% 0 0Total 8,399,843 5.59% 846,486 1,319,10046 52 Pa. Code §§ 57.31-57.39.47 Under PURPA Section 210(m)(1)(A), enacted in response to § 1253 of the Energy Policy Act of 2005, no electricutility shall be required to enter into a new contract or obligation to purchase electric energy from a QF underSection 210(m) if FERC finds that the QF has nondiscriminatory access to: “(i) independently administered,auction-based day ahead and real time wholesale markets for the sale of electric energy; and (ii) wholesale marketsfor long-term sales of capacity and electric energy.” FERC Docket No. RM06-10-001.Electric Power Outlook for Pennsylvania 2009-2014 19
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Page 4 and 5: adequate reserve margin. Net capaci
Page 6 and 7: Section 3 - Regional ReliabilityReg
Page 8 and 9: Regional Reliability OrganizationsI
Page 10 and 11: Figure 1 NERC regionsNote: The high
Page 12 and 13: Figure 3 PJM RTO service territoryO
Page 14 and 15: Figure 5 Mid-Atlantic Area National
Page 16 and 17: Trans-Allegheny Interstate LineThe
Page 18 and 19: September 2009. A Recommended Decis
Page 20 and 21: suppliers or purchased power from t
Page 22 and 23: AECs are earned when a qualified fa
Page 26 and 27: Section 2 - Historic and Forecast D
Page 28 and 29: Figure 10 Pennsylvania aggregate no
Page 30 and 31: Most utilities have employed a comb
Page 32 and 33: Figure 13 Pennsylvania residential
Page 34 and 35: Figure 15 Pennsylvania industrial u
Page 36 and 37: Figure 17 Average deviation in peak
Page 38 and 39: Summary of EDC DataThe following se
Page 40 and 41: Figure 27 Duquesne Light Company pe
Page 42 and 43: 2000. Average annual use per reside
Page 44 and 45: Figure 32 Metropolitan Edison Compa
Page 46 and 47: Figure 33 Pennsylvania Electric Com
Page 48 and 49: percent and an industrial growth ra
Page 50 and 51: Figure 38 Pennsylvania Power Compan
Page 52 and 53: Figure 39 PPL Electric Utilities Co
Page 54 and 55: PECO's 2009 summer peak load, occur
Page 56 and 57: Figure 44 PECO Energy Company avera
Page 58 and 59: commercial (24.3 percent). Average
Page 60 and 61: Figure 48 West Penn Power Company a
Page 62 and 63: Figure 50 UGI Utilities Inc. peak l
Page 64 and 65: sales, followed by residential with
Page 66 and 67: Figure 53 Wellsboro Electric Compan
Page 68 and 69: system and to make recommendations
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Page 72 and 73: Figure 54 RFC 2009-2018 reserve mar
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The MISO reserve margin for existin
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PennsylvaniaThe Pennsylvania electr
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GWh more than they generated. Figur
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Susquehanna Steam Electric Station,
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Table A01 Duquesne Light CompanyTab
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Table A09 Pennsylvania Electric Com
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Table A17 PPL Electric Utilities Co
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Table A25 West Penn Power CompanyTa
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Status of Pennsylvania's Plant Addi
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Appendix C - Existing Generating Fa
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Pennsylvania's Existing Electric Ge
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Nuclear Power Plants in Pennsylvani
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2010 Report - Pennsylvania Public Utility Commission

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