PA Public Utilities Commission Issues Final Order on Phase II of Act 129 Energy Efficiency Programs

On August 2nd, the Pennsylvania Public Utilities Commission (PUC) issued its Final Implementation Order on Phase II of Act 129 Energy Efficiency and Conservation (EE&C) Programs.  To the dismay of the Council and its allies, the substance of the Final Order remains largely unchanged from that of the initial Secretarial Letter and Tentative Implementation Order.  Some of the major points can be found below:

While the Council urged the PUC to set energy reduction targets of 1% per year, the PUC has decided to set reduction targets at only 0.77% per year for a three year Phase II.  Moreover, the PUC will allow utilities to carry over excess energy savings from Phase I, further reducing the amount of energy to be conserved in Phase II.

The PUC has also decided that it will not require utilities to continue their demand response (DR) programs in Phase II but instead will wait until completion of a cost effectiveness study and, depending on the outcome, may include DR programs in Phase III.

On the up side, the PUC has directed utilities to continue already existing residential DR programs, such as PECO's A/C Saver program.

The PUC has, for Phase II, maintained the carve-out for government, education, and nonprofit entities as well as that for low income residents.

Over the next few months, utilities will develop their EE&C plans and submit them to the PUC for approval.  The PUC is expected to rule on plans by the end of February, and Phase II will begin on June 1, 2013.

Clean Air Council will continue to monitor the activities of the Public Utilities Commission and push for aggressive energy savings for the benefit of Pennsylvania's citizens and environment.

Act 129 Final Implementation Order.doc387.5 KB