The House Environmental Resources and Energy Committee, chaired by Rep. Bill Adolph (R-Delaware) and Rep. Bud George (D-Clearfield), held the second of its Energy Policy information meetings on November 1 to hear presentations on energy efficiency and renewable sources of energy.

Commissioner William Shane from the Public Utility Commission said the state needed to do more to encourage indigenous natural gas production in Pennsylvania, which now provides 20 percent of our needs.

He suggested streamlining the permitting process for new wells and potentially drilling for natural gas on lands owned by the Department of Conservation and Natural Resources and off the North Carolina coast.

Commissioner Shane noted that electric customers have been shielded from the increase in the cost of fuel to produce electricity because of caps on rates, unlike in natural gas which has no caps. But, those caps will be going off at the end of 2009 and in 2010 which will mean a competitive market will exist.

The PUC is also working to encourage demand-side management and energy efficiency through a variety of programs like the Low Income Usage Reduction Program which makes homes more energy efficient, expanding the use of time-of-use metering equipment that encourages off-peak use and educating consumers about energy conservation.

Commissioner Shane said implementation of the Alternative Energy Portfolio Standards will also increase the use of non-fossil fuel for electricity production and recommended the construction of coal gasification plants to generate electricity.

Commissioner Shane was also asked what he thought of the recent proposal by the Department of Environmental Protection to develop a Pennsylvania-only rule to limit mercury emissions at power plants and he said he personally opposed the idea.

Bill Prindle from the American Council for an Energy Efficient Economy said promoting energy efficiency is the “fastest and cheapest way” to deal with Pennsylvania’s energy problems.

Unlike the 1970s, today’s energy crisis is not about supply, Prindle said, it’s about how much energy can be delivered on a daily and yearly basis at what cost. That means looking at the demand-side of the energy marketplace can have a real impact, particularly at peak use times.

Prindle said states like New York and New Jersey have each spent over $100 million a year to promote energy efficiency, and Pennsylvania has not even come close.

Roger Clark, Manager of Technology and Policy for the Sustainable Energy Development Fund said for the goals of the Alternative Energy Portfolio Standard to be met, Pennsylvania has to build regional and local clean energy markets.

The Committee's next Energy Policy information meeting will be November 16 and scheduled to provide remarks is Department of Environmental Protection Secretary Kathleen McGinty.

11/4/2005