Press Release

PUC Approves Settlement to Allow PECO to Buy Solar Alternative Energy Credits

Published on 8/27/2009

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement that will allow PECO Energy Co. to begin purchasing solar alternative energy credits (AECs) to satisfy future Alternative Energy Portfolio Standards Act (AEPS) requirements pursuant to a competitive request for proposal process.

The Commission voted 5-0 to approve the settlement, which allows PECO to purchase up to 8,000 solar Tier I AECs annually for a 10-year period to satisfy a portion of the company’s solar-related AEPS requirements. PUC Chairman James H. Cawley issued a statement. Vice Chairman Tyrone J. Christy also issued a statement.

The settlement addresses issues such as market benchmarking analysis; minimum bidder requirements; solar AEC price caps; minimum size of eligible solar facilities; and Commission review periods. The settlement was reached among the company and the Office of Consumer Advocate, Office of Small Business Advocate, Solar Alliance and Beacon.

In general, AEPS 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, waste coal 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 to 18 percent by 2020.

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

 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.

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Docket No. P-2009-2094494

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