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Press Release

PUC Approves Plan to Allow PECO to Begin Meeting Alternative Energy Requirements

Published on 12/6/2007

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a plan that will allow PECO Energy Co. to begin fulfilling the requirements of the state’s Alternative Energy Portfolio Standards Act of 2004 (AEPS) sooner rather than later.

The Commission voted 4-0 to allow the company to acquire alternative energy credits through a competitive procurement process in order to begin to meet its AEPS requirements. Alternative energy credits were created as a tool to measure compliance with the AEPS Act. The credits act as a concrete way to determine if the electric distribution companies are using the required percentage of energy from alternative sources as required by the Act.

The Commission also approved a motion by Commissioner Tyrone J. Christy that among other things provided that the Commission would have three business days to review the auction results as opposed to a 24-hour review period provided in the settlement.

Commission Vice Chairman James A. Cawley issued a statement.

PECO’s compliance period for AEPS begins Jan. 1, 2011, however, under the law, PECO may now begin acquiring alternative energy credits, “banking” those credits for use at the start of its compliance period. Banked credits may be used for up to two consecutive years.

The Commission Order is tentative to allow parties an opportunity for comment. If comments are filed, the Commission with take additional action at its Dec. 20, 2007 meeting. If no comments are filed, the action will become final with no further Commission action.

AEPS generally requires that a certain percentage of all electric energy sold to retail customers be derived from alternative energy sources such as solar, wind, hydropower, geothermal, biomass, and demand side management resources. The law applies to both electric distribution companies and electric generation suppliers who must demonstrate their compliance on an annual basis.  The level of alternative energy required gradually increases according to a 15-year schedule.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. P-00072260

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