Press Release

PUC Approves Next Phase of State Energy Efficiency Program

Published on 6/18/2025

Filed under: Electric

New Five-Year Plan Projected to Save Consumers $1.4 Billion While Supporting Grid Reliability

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved the next phase of the Commonwealth’s Energy Efficiency and Conservation (EE&C) Program – adopting the Phase V Implementation Plan, which guides efforts by major electric distribution companies (EDCs) to reduce energy consumption and demand from June 1, 2026, through May 31, 2031.

The 5-0 vote by the Commission marks the fifth phase of Pennsylvania’s long-standing EE&C Program, created under Act 129 of 2008, and builds on more than 15 years of work to help consumers lower their energy bills while reducing strain on the electric grid – particularly during periods of high demand.

“The energy landscape in Pennsylvania right now is full of challenges, but also opportunities,” noted PUC Chairman Stephen M. DeFrank in a statement in conjunction with today’s vote. “The tremendous load growth expected to come from data centers and related infrastructure may reshape our entire grid. Done properly, this new development may foster economic growth and allow for significant infrastructure investments in our electric system. Done prudently, Pennsylvania could reap these benefits while limiting or lowering transmission costs for existing customers.”

Focus on Energy Savings, Reliability and Affordability

Based on a detailed statewide market potential study, the Phase V plan is projected to yield:

• More than 3 million megawatt-hours (MWh) of first-year electricity savings across Pennsylvania.
• Estimated net lifetime benefits of $1.4 billion for consumers.
• A statewide Total Resource Cost (TRC) ratio of 1.82, confirming the cost-effectiveness of the program.

The EE&C program includes a variety of tools and programs to encourage smarter energy use – such as home weatherization, appliance efficiency upgrades, demand response initiatives, and energy-saving business practices. The program is implemented by the Commonwealth’s largest EDCs: Duquesne Light, PECO, PPL, and the FirstEnergy Pennsylvania companies (Met-Ed, Penelec, Penn Power, and West Penn Power).

These programs are reviewed and approved by the Commission and funded through a small surcharge on customer bills – with the goal of delivering greater savings than the dollars spent.

Planning and Public Input

Development of the Phase V plan followed the release of a Tentative Implementation Order in February 2025 and included detailed energy efficiency and demand response potential studies performed by the Commission’s Statewide Evaluator.

The Commission received and reviewed extensive public input from consumer advocates, environmental groups, state agencies, utilities, clean energy organizations, and other stakeholders. Commenters were invited to provide feedback on maximizing affordability and improving grid resource adequacy in light of rising energy costs and growing demand from emerging sectors such as data centers and electric vehicles.

The final plan reflects those concerns and emphasizes the role of energy efficiency and electricity demand management as cost-effective tools to:

• Help consumers reduce their energy bills.
• Ease strain on the power grid during peak periods.
• Reduce the need for costly infrastructure upgrades.
• Support Pennsylvania’s energy transition and reliability goals.
  
  

Background – Act 129 and EE&C

Act 129 of 2008 directed the Commission to establish ongoing efficiency programs for major EDCs and to evaluate the cost-effectiveness of these programs every five years. Based on the positive outcomes of the four previous EE&C phases, the Commission determined that additional incremental reductions in electric consumption and peak demand were both achievable and cost-effective for Phase V.

The Phase V plan will formally take effect on June 1, 2026, following the conclusion of Phase IV, and will continue through May 31, 2031.

Additional Information

The final Phase V Implementation Order and related materials are available on the Commission’s website.

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.

Visit the PUC’s website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X (formerly Twitter), Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: M-2025-3052826

Contact:

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