Press Release

PUC Establishes EDC Energy Consumption, Peak Demand Reduction Goals under Act 129

Published on 3/26/2009

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today identified the specific energy consumption and peak demand reductions that electric distribution companies (EDCs) must achieve under the requirements of Act 129.

The Commission voted 5-0 to approve the EDC energy consumption and peak demand reduction goals. In keeping with a Jan. 15, 2009, PUC Order, the EDCs submitted the data with a list of assumptions used in calculating the forecast, supporting data, a description of the weather normalization methodology and any other supporting documentation. Interested parties then had 15 days to comment. No comments were filed.

Under Act 129, the EDCs must reduce electricity consumption by 1 percent by May 31, 2011, and by 3 percent by May 31, 2013. The energy consumption reductions total 1.5 million MWh and 4.4 million MWh, respectively. The Act also requires a 4.5 percent reduction in peak demand by May 31, 2013. The peak demand reductions are 1,193 MW.

Each EDC is to use the energy consumption and peak demand reductions to develop its energy efficiency and conservation plan required under Act 129.  The plans must be filed with the Commission by July 1, 2009.

Act 129 expanded the PUC’s oversight responsibilities and imposed new requirements on EDCs with at least 100,000 customers. The overall goal is reducing energy consumption and demand.

Act 129 added several new sections to and amended several existing sections of the Public Utility Code.  The Commission will continue to implement the Act in phases.  Subsequent phases of the Commission’s Act 129 implementation process will address EDC and default service provider responsibilities; smart meter technology; time-of-use rates; real-time pricing plans; default service procurement; market misconduct; alternative energy sources; and cost recovery.

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. M-2008-2069887

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• Press Secretary
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