Press Release

PUC Implements Phase IV of the Act 129 Energy Efficiency Program, Establishes Additional Consumption Reduction Requirements

Published on 6/18/2020

Filed under: Electric

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today approved the implementation of a five-year fourth phase (Phase IV) of the Act 129 Energy Efficiency and Conservation (EE&C) program, requiring additional, incremental reductions in consumption and peak demand for Pennsylvania’s largest electric distribution companies (EDCs).

The Commission voted 4-0 to approve the Final Implementation Order, which addresses issues related to the design and implementation of the next phase of the EDCs’ EE&C programs. As part of the adoption of this Order, the Commission will adopt a five-year phase of the Act 129 EE&C Program that will operate from June 1, 2021, through May 31, 2026.

EDCs’ current EE&C plans are valid through May 31, 2021, at which time the law directs the PUC to re-evaluate the costs and benefits to determine if the programs should continue. By initiating this planning process well in advance of 2021, the Commission intends to facilitate a smooth transition to minimize any possible program lapses as EDCs move into the program’s fourth phase.

The Final Implementation Order addresses:

• The timeline for implementing Phase IV;
• The length of Phase IV will be five years commencing June 1, 2021;
• Inclusion of consumption reduction requirements which aim to reduce consumption by 3.1% statewide over the duration of the plan.;
• Inclusion of peak demand reduction requirements via the use of energy efficiency measures aimed to reduce peak demand by 3.0%;
• Inclusion of a low-income sector reduction carve-out;
• Program design considerations;
• Other transition considerations; and
• Program cost-recovery considerations.

In preparation for a potential Phase IV, the Commission previously tasked its Phase III Statewide Evaluator (SWE) with performing an energy efficiency and peak demand reduction (EEPDR) potential study, as well as a dispatchable demand response (DDR) potential study.  The EEPDR and DDR Potential Studies were released publicly via a Secretarial Letter served March 2, 2020.  The Commission then issued for public comment its Phase IV Tentative Implementation Order on March 12, 2020.

Act 129 of 2008

Act 129 became law on Oct. 15, 2008 and, among other things, required the implementation of EE&C programs that would produce electricity usage reductions to meet legislatively mandated targets through May 31, 2013 and requires the Commission to continue requiring implementation of EE&C programs so long as they are cost-effective.  On Aug. 2, 2012, the PUC issued a Final Implementation Order adopting a three-year Phase II Act 129 EE&C program.  On June 11, 2015, the Commission issued a Final Implementation Order adopting the current five-year Phase III EE&C Program.

Act 129 requires electric distribution companies with at least 100,000 customers to file EE&C plans with the Commission, including Duquesne Light; Met-Ed; PECO; Penelec; Penn Power; PPL Electric; and West Penn Power.  The Act also addresses issues such as electric utility and default service provider responsibilities; conservation service providers; smart meter technology; time-of-use rates; real-time pricing plans; default service procurement; market misconduct; alternative energy sources; and cost recovery.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues. 

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Docket No.:  M-2020-3015228

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov