The Public Utility Commission this week finalized regulations that govern compliance with the Alternative Energy Portfolio Standards Act by electric distribution companies and electric generation suppliers.

The commission voted 5-0 to finalize the proposed uniform standards and processes that will determine compliance by EDCs and EGSs. The regulations reflect the commission’s understanding that the act is intended to promote the efficient utilization of the region’s alternative energy resources in a manner that will yield significant economic and environmental benefits for Pennsylvania.

Vice Chairman Tyrone J. Christyissued a statementcalling for a legislative amendment to the AEPS Act that would add a reciprocity requirement to the AEPS. Such a requirement would “help ensure that Pennsylvania receives the benefits for which it is paying, and would encourage other states within PJM to enact their own renewable/alternative energy portfolio standards, and to open their borders to Pennsylvania,” he said.

The rulemaking includes requirements for:EDC and EGS obligations; alternative energy system qualifications; alternative energy credit certification and duties of the credit program administrator; alternative compliance payments; alternative energy cost-recovery and market integrity; banking alternative energy credits; and alternative energy credit registry.

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 percent of electricity using alternative energy resources. The percentage of Tier I, Tier II and solar photovoltaic resources gradually increase 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 hasimplemented a websiteto make information about AEPS available to the public in a user-friendly manner.

The rulemaking now goes before the state’s Independent Regulatory Review Commission, the Office of Attorney General, Governor’s Budget Office and the standing committees in both houses of the General Assembly for review. Once that review is completed, the regulations would become final once published in the Pennsylvania Bulletin.

For more information, visit thePUC's Alternative Energy Portfolio Standards webpage.

9/26/2008