PECO First PA Utility To Meet PA Alternative Energy Portfolio Standards

PECO has signed five-year agreements for the purchase of renewable energy credits equal to 412,000 megawatt-hours of renewable energy. This agreement, along with a similar agreement made in August 2008, brings PECO’s renewable energy credit purchase to 452,000 per year, making it the first utility in the state to buy and bank renewable energy credits to meet the Pennsylvania Alternative Energy Portfolio Standards requirements.

 

Based on Environmental Protection Agency methodology, PECO’s renewable energy credit commitment avoids carbon dioxide emissions equal to taking about 60,000 cars off the road each year.

 

“By signing these agreements we reinforce our commitment to renewable energy and strong environmental focus,” said Denis O’Brien, president and CEO of PECO. “As a utility leader, it is critically important that we support the continued development of new renewable energy sources and promote clean energy technologies.”

 

The AEPS Act requires that by 2011, 3.5 percent of the energy sold to PECO customers be comprised of energy generated from renewable resources such as wind, low-impact hydro, methane, geothermal, biomass, or fuel cells, as measured by renewable energy credits. Renewable energy credits are created on a one-to-one basis each time one megawatt-hour of renewable energy is produced.

 

Under this purchase, PECO’s aggregate supply of renewable energy credits has a weighted average price of $20.42 per credit. The winning bidders were Iberdrola Renewables, Inc. and Exelon Generation Company, LLC.

 

The winning bidders were chosen based on price following a competitive bid process approved by the Public Utility Commission and administered by Navigant Consulting an independent RFP monitor.

In addition to the completed purchases, the company also is seeking approval from the Public Utility Commission to purchase 8,000 solar renewable energy credits annually under ten-year agreements - enough energy to power nearly 1,000 homes for 10 years.

 

PECO’s support of alternative energy is part of a broader environmental initiative to preserve the environment and help customers become more environmentally responsible. Totaling more than $15.3 million of investment, the comprehensive program also includes the installation of a green roof and a new Crown Lights system at the company’s Center City headquarters; the opening of PECO’s first ‘green building’ in West Chester, recently awarded silver certification for Leadership in Energy and Environmental Design; improvements to secure LEED certification for many other company work sites; the increased use of hybrid and biodiesel vehicles; support for community environmental projects; and enhanced tools and programs to help customers use energy more efficiently.

 

These efforts are a component of Exelon 2020: A Low-Carbon Roadmap, the comprehensive environmental plan of PECO’s parent company. Exelon 2020 sets the goal of reducing, offsetting or displacing more than 15 million metric tons of greenhouse gas emissions per year by 2020.

 

The corporation will achieve this by reducing or offsetting the company’s carbon footprint, helping customers reduce their greenhouse gas emissions, and providing more low-carbon electricity in the marketplace.