Press Release

PUC Adopts Test to Analyze the Costs and Benefits of Electric Distribution Companies’ Energy Efficiency and Conservation Plans

Published on 6/18/2009

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today adopted a total resource cost (TRC) test to analyze the costs and benefits of energy efficiency and conservation (EE&C) plans submitted by electric distribution companies (EDCs).

The Commission voted 4-0 to adopt a motion by Chairman James H. Cawley that identifies the specific TRC test that will be used to evaluate the EDC EE&C plans.  Commissioner Kim Pizzingrilli issued a statement. Vice Chairman Tyrone J. Christy abstained.

Act 129 of 2008 directs the Commission to use a TRC test to analyze the costs and benefits of the EDCs’ plans, which are to be filed with the Commission by July 1, 2009.  Commission staff will further convene a stakeholder group to address issues related to the TRC test process.

Act 129 of 2008 required electric distribution companies (EDCs) with more than 100,000 customers to file, by July 1, 2009, an energy efficiency and conservation (EE&C) plan to reduce electric consumption by at least one percent of the EDC’s expected load for the period from June 1, 2009, through May 31, 2010, adjusted for weather and extraordinary loads.  This 1 percent reduction is to be accomplished by May 31, 2011.  By May 31, 2013, the EDC is required to reduce its total consumption by a minimum of 3 percent, as well as its peak demand by a minimum of 4.5 percent.

On May 29, 2009, the Commission circulated a TRC test proposal among interested parties and posted the proposal on the Commission’s website seeking comments relative to TRC testing in Pennsylvania.  Ten parties provided comments on the TRC test proposal.

Act 129 expanded the PUC’s oversight responsibilities and imposed new requirements with the overall goal of reducing energy consumption and demand. It added several new sections to and amended several existing sections of the Public Utility Code.  The Commission is implementing the Act in phases that 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 website at www.puc.state.pa.us.

###

Docket No. M-2009-2108601

Contact:

• Press Secretary
  717-787-5722