The Public Utility Commission this week approved a plan to allow customers of Allegheny Power (West Penn Power Co.) to purchase alternative energy credit to support the development of wind generation.

The Commission voted 5-0 to approve the voluntary plan saying that programs such as this provide incentives for the early development of alternative energy generation and enable customers to directly support renewable energy projects. Vice Chairman James H. Cawley made a statement. A motion by Commissioner Tyrone J. Christy to increase consumer education on the plan passed unanimously.

“This voluntary plan to support alternative energy is a good idea, but customer choice must be an informed choice,” Commissioner Christy said. “It’s important that customers receive easily understandable information not only at the start of this program but throughout its duration to ensure they have the opportunity and understanding necessary to participate.”

AECs place a value on the generation of alternative energy. One AEC is created when one megawatt hour of alternative energy. Money collected from the purchase of AECs is used toward the development of alternative energy generation projects such as wind.

Under the plan, customers may voluntarily purchase blocks of 100 kwh of wind energy renewable attributes. The rate per block would be $2.50, which would be in addition to the regular monthly cost per kilowatt hour of electricity consumed by the customer. The customer will be able to designate any number of blocks to be purchased per month, up to 100 percent of the customer’s total energy used. The company will begin informing customers of the program through bill inserts.

The Commission said the Allegheny plan furthers the goals of the state’s Alternative Energy Portfolio Standards Act of 2004. 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, electric distribution companies and electric generation suppliers must supply 18.5 percent of electricity using alternative energy resources.

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

For more information, visit the PUC’s Alternative Energy website.

8/8/2008