PECO Ahead of Schedule on Conservation

 

By Andrew Maykuth

INQUIRER STAFF WRITER

Peco Energy Co. says it is six months ahead of schedule to meet a state mandate to induce customers to consume less electricity.

A year after launching an ambitious energy conservation program, the Philadelphia utility said its 1.6 million customers have reduced power consumption 419 gigawatt hours, saving $68 million.

The reductions mean Peco has already met a state mandate to reduce overall demand for electricity by one percent by May 31, 2011. The state's conservation law, called Act 129, requires utilities to reduce consumption by three percent by 2013 or face penalties.

The Pennsylvania Public Utility Commission last year approved Peco's plan to spend $342 million over four years to cover the conservation costs. Peco can recover the costs of the programs by raising rates up to 2 percent - about $3 a month for a customer using 1,000 kilowatt-hours.

So far, about 78,000 customers have participated in Peco Smart Ideas programs, which include free or discounted weatherization or conservation measures.

The utility has distributed 3.9 million discounted compact fluorescent lightbulbs through retail outlets, completed about 14,000 free home-energy audits and recycled 11,000 inefficient appliances. Customers have applied for about 82,000 rebate offers.

Catherine Engel, Peco's spokeswoman, said the energy savings has the same impact as not driving about 457 million miles or planting nearly 440,000 trees.

Act 129, which was passed in 2008, also requires utilities to reduce demand for electricity by 2013 by 4.5 percent on summer days when the regional electrical grid is stressed.

The utility this year rolled out its Smart A/C Saver program for curbing air-conditioner usage on the hottest days.

For customers who sign up, Peco installs a radio device on their air-conditioner that will allow the utility to shut the unit off for up to 15 minutes every half hour during "conservation events." Peco pays participants a bonus of up to $120 a year.

About 14,550 customers have already signed up, Catherine Engel, Peco's spokeswoman, said Tuesday. The utility is currently ramping up a promotion for the program for next summer.

By next year, Peco hopes to implement time-of-day rates that would allow residential customers to save money by shifting consumption to off-peak hours.