Summary: 3%cumulative savings by 2013; ~2.3% cumulative savings from 2014-2016.
In October 2008 Pennsylvania adopted Act 129, establishing an energy efficiency resource standard in Pennsylvania. An implementation order was issued by utility regulators in January 2009. Each electric distribution company (EDC) with at least 100,000 customers must reduce energy consumption by a minimum 1% by May 31, 2011, increasing to 3% by May 31, 2013, measured against projected electricity consumption for the period from June 2009 to May 2010. Peak demand must be reduced by 4.5% by May 31, 2013.
Ten percent of both consumption and peak demand reductions are to come from federal, state, and local government, including municipalities, school districts, institutions of higher education and nonprofit entities. Another ten percent must come from the low-income sector. The Pennsylvania Public Utility Commission (PUC) approved Energy Efficiency and Conservation (EE&C) plans for each EDC, which detailed program portfolios and savings targets tailored to each EDC. Failure to achieve the reductions required (load and/or peak demand) subjects EDCs to a civil penalty of not less than $1M and not to exceed $20M.
Under the legislation, the EDCs’ EE&C plans propose a cost-recovery tariff mechanism to fund the EE&C measures and to ensure recovery of reasonable costs. The EDCs can also recover the costs through a reconcilable adjustment mechanism. The total cost associated with an EDC’s energy efficiency and peak demand reduction plan may not exceed 2% of the EDC’s total annual revenue as of December 31, 2006.
In August 2012, the Pennsylvania PUC issued an implementation order for Phase II of the EE&C Program, establishing electricity savings targets for the 3-year period from FY2014-2016. The targets would amount to 2.3% cumulative savings over the 3-year period; no incremental annual targets were established. Inclusion of peak demand targets for the next planning cycle has not yet been finalized.
Pennsylvania has no Natural Gas EERS.
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