12/16/24 - 110 New Stories - REAL Environmental & Conservation Leadership In PA: http://tinyurl.com/3ubmzu7a
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House Republicans Examine Energy Mandates And Impacts On Consumers
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The House Republican Policy Committee Monday held a hearing on the energy mandates included in the Alternative Energy Portfolio Standards and under Act 129 of 2008.
Terry Fitzpatrick, Energy Association of PA, told the Committee electric distribution companies are concerned about the cumulative cost to consumer of these mandates in light of the need to modernize electric infrastructure and maintain programs to assist low-income individuals. He noted the bulk of the requirements to purchase power from certain sources have not yet taken affect, however, the cost of alternative energy credits and compliance payments will increase the cost of electricity to consumers.
Fitzpatrick said the cost to comply with Act 129 mandates to reduce electricity use are complex and contentious as well as very prescriptive increasing the cost of compliance for consumers. The total cost of compliance is expected to be about $1 billion in Pennsylvania.
Romulo Diaz, PECO, said while environmental stewardship is one of PECO's core values, there are more effective and less effective ways of achieving those goals laid out by AEPS and Act 129. "Our experience has been that some of these programs have been successful and cost-effective, but others can be improved while maintaining their basic structure, and a few require fundamental re-thinking."
Doug Krall, PPL Electric Utilities, said the energy efficiency and conservation programs in Act 129 are providing value to customers, but the AEPS requirements should not be changed to allow the electricity market to respond, react and adjust to the act's mandates.
Bill Roland, Duquesne Light, said whether we like it or not, the energy mandates have to be paid for by the consumers and that allowing customers the choice of electric suppliers is a core philosophy of his company.
Chuck Fullem, FirstEnergy, said the goals included in Act 129 were set in a "vastly different economic landscape" than Pennsylvania's finds itself in now. He noted in particular the mandates for smart meters and penalties for not achieving mandated electric use reductions should be review.
Rep. David Reed (R-Indiana), Chair of the Committee, said they will continue to explore energy efficiency policies and their impact on consumer in future meetings.
Copies of testimony are also available at the Committee website.
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8/29/2011 |
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