2010 Report - Pennsylvania Public Utility Commission

adequate reserve margin. Net capacity resources are projected to be 219,755 MW by 2018,resulting in a reserve margin of 13.8 percent, not including conceptual resources.Pennsylvania must maintain its commitment to the basics of energy production and to encouragenew initiatives in demand side response, energy efficiency, renewable energy, and other newtechnologies so we can continue as a national leader in these areas. We also need to continueproviding assistance to low-income customers to reduce their energy consumption.Alternative Energy Portfolio Standards (Act 213)The Commission continues to implement procedures and guidelines necessary to carry out therequirements of Act 213. 5 Act 213 requires that an annually increasing percentage of electricitysold to retail customers be derived from alternative energy resources, including solar, wind, lowimpacthydropower, geothermal, biologically derived methane gas, fuel cells, biomass, coal minemethane, waste coal, demand side management, distributed generation, large-scale hydropower,by-products of wood pulping and wood manufacturing, municipal solid waste, and integratedcombined coal gasification technology. The amount of electricity to be supplied by alternativeresources increases to a total of 18 percent by 2021. A subsequent amendment to Act 213 requiredthe Commission to update its net-metering regulations. Among other things, this allows netmeteredcustomer-generators to receive full retail value for all energy produced in excess ofinternal use.The Commission issued a Final Order governing the participation of demand side management,energy efficiency and load management programs and technologies in the alternative energymarket. The Commission also issued Final Orders governing net metering and interconnection forcustomer-generators using renewable resources, consistent with the goal of Act 213, andpromoting onsite generation by eliminating barriers, which may have previously existed regardingnet metering and interconnection.Energy Efficiency and Conservation Program (Act 129)Act 129 of 2008 6 added Section 2806.1 to the Public Utility Code which requires that theCommission adopt an energy efficiency and conservation program for the reduction of energydemand and consumption within the service territory of each electric distribution company with atleast 100,000 customers. 7 Sales are to be reduced by 1 percent by May 31, 2011, and 3 percent byMay 31, 2013. Peak demand is to be reduced by 4.5 percent by May 31, 2013. Based on forecastgrowth data, consumption reduction goals total 1,467 GWh in 2011 and 4,400 GWh in 2013. Peakdemand reduction goals total 1,193 MW for 2013. 8 Plans were filed on July 1, 2009.Act 129 also requires an increase in the percentage share of Tier I alternative energy resources tobe sold under the provisions of Act 213.5 Alternative Energy Portfolio Standards Act, effective Feb. 28, 2005; 73 P.S. §§ 1648.1—1648.8.6 Energy Efficiency and Conservation Program, signed by Gov. Rendell on Oct.15, 2008.7 66 Pa.C.S. § 2806.1.8 Docket No. M-2008-2069887.iiPennsylvania Public Utility Commission