The Public Utility Commission this week announced a partnership with GDS Associates Inc. Engineers and Consultants to provide long-term, statewide evaluation of electric distribution company energy efficiency programs.

The Commission voted 5-0 to select GDS as a contractor for final negotiation, which if successful will result in a contract between the PUC and GDS being signed. The company earned the highest number of points in the evaluation process. Among the bidders, GDS received the high score in key criteria, including work plan; personnel and infrastructure; and prior experience.

GDS will provide evaluation services for up to four and one-half years to audit program results and verify specific electricity reduction claims of EDCs in response to Act 129 specifications.

As mandated by Act 129 of 2008, the seven largest Pennsylvania EDCs are required to file a plan for consumption and peak demand reductions by July 1, 2009. The PUC will then review the plans for approval, which require the EDCs to meet established reduction targets for May 31, 2011, and May 31, 2013.

As the evaluator, GDS will work with senior Commission staff and assist the PUC to implement a legislative mandate containing significant consumption and peak demand reduction targets; audit programs to be implemented across Pennsylvania by the seven largest Pennsylvania electric utilities; evaluate and improve the EDC's programs in their initial, critical four years of implementation; and provide assessments and recommendations to policymakers for potential programs beyond the initial 2013 program implementation period.

The initial term of the contract will be from the effective date of the contract until October 31, 2011, with the option of a one-year extension from November 1, 2011, until October 31, 2012, and then another extension from November 1, 2012, until December 31, 2013. The extension options will be exercised solely at the Commission's discretion.

Act 129 expanded the PUC's oversight responsibilities and imposed new requirements with the overall goal of reducing electricity consumption and demand. It added several new sections to and amended several existing sections of the Public Utility Code.

The Commission is implementing the Act in phases that address EDC responsibilities to implement energy efficiency and conservation programs; smart meter technology; time-of-use rates; real-time pricing plans; default service procurement; market misconduct; alternative energy sources; and cost recovery.