The Public Utility Commission this week initiated an investigation into future Commission action needed to ensure the state's compliance with and eligibility for specific energy-related funding from the American Recovery and Reinvestment Act of 2009.

 

"In compliance with the Recovery Act, and at the request of the Governor, we move that this Commission commence an investigation into the requirements of Section 410(a) of the Recovery Act," said Commission Chairman James H. Cawley and Commissioner Wayne E. Gardner in a motion.

 

"Specifically, this Commission should establish a comment and reply comment period for interested parties to provide recommendations for future Commission action through appropriate orders, policy statements, or regulations that will ensure compliance with the Recovery Act so that Pennsylvania consumers and businesses can optimally avail themselves of the opportunities provided by energy efficiency and renewable energy while the financial health of Pennsylvania's public utilities is maintained."

 

The Commission voted 5-0 to begin the investigation and institute a public comment period for recommendations on future Commission action that will ensure the state's compliance with the Recovery Act.

 

The Recovery Act included, among other things, $3.1 billion in grants under the Federal State Energy Program, which are contingent upon the states having general ratemaking policies which ensure that "utility financial incentives are aligned with helping their customers use energy more efficiently and that provide timely cost recovery and a timely earnings opportunity for utilities associated with cost-effective measurable and verifiable efficiency savings, in a way that sustains or enhances utility customers' incentives to use energy more efficiently."

 

Interested parties have 60 days from the entry of the order to file comments with the Commission on how to best achieve those conditions. A 30-day reply comment period also will apply.

 

The Commission also will evaluate the affect of proposed federal legislation that calls for utilities to reduce the amount of energy sold. The Commission indicated it will take a closer look at the American Clean Energy and Security Act of 2009 and the effect it would have on electric and natural gas utilities' business models.