Press Release

PUC Establishes Rules for Customer-Generators to Connect to Electric Distribution System

Published on 8/17/2006

Filed under: Electric

HARRISBURG, Pa. – The Pennsylvania Public Utility Commission (PUC) today adopted the rules for how custom-generators – who use technologies such as solar panels or fuel cells – connect to the electric distribution system.

“The regulations are designed to remove the barriers that may have prevented small alternative electric generators from establishing an interconnection to the electric distribution system,” said Commission Chairman Wendell F. Holland. “By finalizing a package of standards that govern the custom-generators, the Commission moves closer to the completion of a significant portion of the Alternative Energy Portfolio Standards Act. We continue to work toward full implementation of this Act in order to create a better environment and economy in Pennsylvania.”

The Commission voted unanimously to set the standards for customer-generators who desire to establish interconnection with the electric distribution system. The interconnection procedures are designed to streamline the regulatory process and encourage custom-generators to enter the market.

Customer-generators must apply to the electric distribution company (EDC) in order to be connected to the system. The interconnection standards establish review procedures for the EDCs, policies for dispute resolution and technical standards. The standards also allow for a single point of interconnection for a location with multiple energy production devices. The rules are now sent to the General Assembly, Independent Regulatory Review Commission, the Attorney General and the Governor’s Budget Office for review.

The interconnection standards work in conjunction with the net metering rules to simplify and regulate the manner in which customer-generators work with utilities. On June 22, 2006, the Commission adopted net metering standards which govern how custom-generators are compensated for generation they provide to the electric utility distribution system. Both rulemaking procedures will result in additional options for consumers allowing them to take control of their energy requirements using alternative energy sources.

The Alternative Energy Portfolio Standards Act 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 ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as stewards of competition. For recent news releases, or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. L-00050175, M-00051865

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