Guidelines For Expanded Alternative Energy Requirements Approved By PUC

The Public Utility Commission this week finalized 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 unanimously to adopt the final procedures and guidelines for expanding the definition of alternative energy sources in the Alternative Energy Portfolio Standards Act of 2004 that qualify as Tier I alternative energy resources.

 

The order outlines 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 AEPS.

 

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

 

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, electric distribution companies and electric generation suppliers 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 expanded the definition of alternative energy sources that qualify as Tier I resources under AEPS. It also charged the Commission with adjusting, at least quarterly, the percentage share of Tier I resources to be sold by EDCs and EGSs to reflect the new Tier I resources.

 

The Act applies to both EDCs and EGSs, who must demonstrate their compliance on an annual basis. However, compliance with AEPS is deferred until an electric distribution company's generation rate caps expire.

 

The order is one of the phases 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.

 

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