Pennsylvania PUC hears presentations on energy conservation and demand side response

November 27, 2008 · Filed Under Electric Power, Tax Incentives & Legislation · Comment 

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) held a hearing last week on alternative energy resources, energy conservation and efficiency, and demand side response. Various points of view were expressed by industry representatives. Their presentations are available on the PUC Web site.

PA Governor, Ed Rendell, signed House Bill 2200 into law as Act 129 last month. Act 129 requires utilities to adopt cost-effective plans to cut electricity use 1 percent by 2011 and 3 percent by 2013. Utilities must also implement plans to cut energy use 4.5 percent during peak demand periods when prices are highest—typically the hottest days of summer and coldest days of winter—by 2013.  Electric utilities that fail to meet the law’s requirements may face steep penalties. The cost of the energy efficiency and conservation plans will be recovered from the ratepayers.

Acting PA Department of Environmental Protection Secretary John Hanger is pushing for the implementation of advanced meters, aka “smart meters”, that allow consumers to respond to higher prices during periods of peak demand by shifting their consumption to times when power prices are lower. Act 129 requires that utilities must provide their customers with smart meters within 15 years.

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