The Public Utility Commission this week proposed procedures and guidelines that allow for the limited expansion of qualified alternative energy sources and the requirements mandated by Act 129 of 2008.

 

The Commission voted 5-0 to seek comment on the manner in which Pennsylvania-based low-impact hydro-power facilities and generators utilizing by-products of pulping and wood manufacturing processes will qualify as a Tier I resource as defined by the Alternative Energy Portfolio Standards Act of 2004.

 

The tentative order also proposed reporting requirements and related procedures that the PUC will use to adjust the AEPS Tier I requirements to account for the newly qualified resources.

Commissioner Kim Pizzingrilli issued a statement on the action taken this week.

 

AEPS required 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, which were divided into two tiers. The percentage of Tier I, Tier II and solar photovoltaic resources gradually increases over this period.

Act 129, which added new sections to and amended existing sections of the Public Utility Code, expanded the definition of alternative energy sources that qualify under Tier I under AEPS. It also charged the Commission with increasing, at least quarterly, the percentage share of Tier I resources to be sold by electric distribution companies and electric generation suppliers to reflect the new Tier I resources.

 

Interested parties have 20 days from the entry of the tentative order to file comments with the Commission. Further instructions for submitting comments can be found in the tentative order.

 

The tentative order initiates a new phase in the PUC's implementation of Act 129. Several implementation stages are complete. The Commission will continue to implement the Act in phases which will address EDC and default service provider responsibilities; smart meter technology; time-of-use rates; real-time pricing plans; default service procurement; market misconduct; and cost recovery.

 

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.

 

For more information, visit the PUC's Act 129 webpage.