The Public Utility Commission Thursday adopted a Final Implementation Order on the future of energy efficiency and conservation programs established under Act 129 of 2008.

The Commission voted 5-0 to approve the Implementation Order that addresses issues related to the design and implementation of the next phase of the EE&C program.  As part of the adoption of this Order, the Commission will adopt a three-year Phase II Act 129 EE&C Program that will operate from June 1, 2013, through May 31, 2016.  Commissioner Wayne E. Gardner and James H. Cawley issued a joint dissenting statement. Commissioner Cawley issued a separate dissenting statement.

The current EE&C plans are valid through May 2013, at which time the law directs the PUC to re-evaluate the costs and benefits to determine if the EE&C programs should continue. By initiating this planning process well in advance of 2013, the Commission intended to facilitate a smooth transition to minimize any possible program lapses if the decision is made to move into the second phase of the program.

Commissioner Pamela Witmer noted that it is important to provide the regulated community certainty regarding the investments they have made to date and certainty for consumers who have embraced energy conservation measures. Commissioner Witmer further stated that for the first time, electric distribution companies’ Act 129 plans will include the opportunity for long-term energy consumption reductions through whole house or building envelope control measures.

The Implementation Order addresses:

-- The proposed timeline for implementing for Phase 2;

-- The length of a potential Phase 2;

-- Exclusion of a peak demand program;

-- Aligning electric distribution company targets and funding using dollars per MWh of expected reductions;

-- Inclusion of a reduction carve-out for the government, educational and non-profit sector;

-- Inclusion of a low-income sector reduction carve-out;

-- Program design issues;

-- Other transition issues; and

-- Program cost recovery issues.

On June 5, 2012, the Commission held an Act 129 stakeholders meeting to provide the opportunity for a question and answer session with the Statewide Evaluator related to the baseline studies and the Potential Study discussed in the Tentative Implementation Order, which was issued for comment May 10, 2012.

On March1, 2012, the Commission issued a Secretarial Letter seeking comments.  Chairman Powelson issued a statement. In addition, the Commission held an Act 129 Stakeholder meeting on March 16, 2012, to provide interested parties an opportunity to identify additional issues and concerns regarding the design of any future EE&C Program and to address any questions regarding the topics and issues presented in the Secretarial Letter.

On Oct. 15, 2008, Act 129 of 2008 became law and included implementation of EE&C programs that would produce usage reductions to meet legislatively-mandated targets through May 31, 2013. 

Act 129 also addressed issues such as electric utility and default service provider responsibilities; conservation service providers; smart meter technology; time-of-use rates; real-time pricing plans; default service procurement; market misconduct; alternative energy sources; and cost recovery.

Visit the PUC’s Act 129 webpage for more information.

8/6/2012