House Committee Holds Hearing On Act 129 Energy Efficiency Mandates

The House Consumer Affairs Committee this week held a hearing on Act 129 which sets electricity consumption demand reduction milestones starting at 1 percent by 2011 increasing to 4 percent by 2013.

 

Tyrone Christy, Vice Chair of the Public Utility Commission, provided an overview of activities the PUC has undertaken to implement Act 129, noting the Commission is meeting all the deadlines for implementing the act.

 

Sonny Popowsky, Consumer Advocate of PA, said electric utilities needed to do more to shape their electricity demands to benefit all of their customers in order to promote more residential electric competition.

 

Frank Jiruska, PECO Energy Company, spoke about the steps his company has taken to offer customers an early phase-in option and to promote competitive electric procurement to reduce electricity costs. He noted implementing Act 129 will result in a loss of revenue for the company, possibly as much as $40 million annually.

 

Maggie Eldridge, American Council for an Energy-Efficient Economy, presented the findings of an ACEE report which estimates reducing customer electric demands could save as much as $5 billion nationally by 2025.

 

Michael Love, Energy Association of PA, praised the efforts of the PUC to implement Act 129, however noted limiting the amount utilities can spend to achieve the required reductions is not adequate noting New Jersey utilities were allowed to spend three times as much as Act 129 allows and they have yet to reach a 1 percent reduction.

 

Paul Raab, UGI Gas, said the use of natural gas by consumers has a significant potential to contribute to the electricity reduction goals and improve energy efficiency in the Commonwealth.

 

Rep. Joe Preston (D-Allegheny) serves as Majority Chair of the Committee and Rep. Bob Godshall (R-Montgomery) serves as Minority Chair.