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Press Release

PUC Releases Annual Report on Alternative Energy Portfolio Standards Act

Published on 5/29/2008

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released the 2007 Annual Report of the Alternative Energy Portfolio Standards (AEPS) Act of 2004.  The report was prepared by the PUC Bureau of Conservation, Economics and Energy Planning in cooperation with the Pennsylvania Department of Environmental Protection.

According to the report, the two electric distribution companies (EDCs) and five electric generation suppliers (EGSs) that had compliance obligations in 2007 have met, and in some instances exceeded, their requirements.  AEPS compliance is verified and tracked through an alternative energy credits program, in which EDCs and EGSs meet their obligations by purchasing individual credits.   Each credit represents one megawatt hour of alternative energy generation.

Between Feb. 28, 2007, and May 31, 2007, Penn Power, UGI-Electric and five suppliers sold 1,452,807 megawatt hours of electricity and purchased 82,877 credits to meet their obligations.  The suppliers include Constellation New Energy, Dominion Retail, Sempra, FirstEnergy Solutions and Strategic Energy.  During this reporting period, 5.7 percent of electricity sold to retail customers in the two utility service areas was generated from alternative energy resources.  Tier I resources, such as wind, low-impact hydro and solar energy, made up 1.5 percent.  Solar photovoltaic energy sales represented 0.0018 percent of the Tier I percentage.  Tier II resources, such as waste coal, made up 4.2 percent. 

The AEPS Act requires that a certain percentage of all electric energy sold to retail customers within the Commonwealth be derived from alternative energy sources.  By 2021, EDCs and EGSs must supply 18.5 percent of electricity using alternative energy resources.  The percentage of Tier I, Tier II and solar photovoltaic resources gradually increases over this period.  The Act applies to both electric distribution companies and electric generation suppliers, who must demonstrate their compliance on an annual basis.  However, compliance with the portfolio standards is deferred until an electric distribution company’s generation rate caps expire. 

Since the passage of the AEPS Act in late 2004, the PUC has moved expeditiously to develop the rules and regulations necessary for fostering Pennsylvania’s alternative energy market and has implemented a Web site to make information about AEPS available to the public in a user-friendly manner.  Visit the PUC Web site for a link to the AEPS Report.

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.

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