Sen. Lisa Boscola (D-Lehigh) Thursday introduced legislation-- Senate Bill 805-- to allow large commercial and industrial electricity users to opt-out of the Act 129 Energy Efficiency and Conservation Program.

The bill would remove the cost recovery surcharge on those deciding to opt-out of funding the program.  They would also be removed from the electric distribution company’s targets for energy conservation and no longer be eligible to receive grants or other benefits under the Act 129 program.

“To enhance their business or survive the host of headwinds facing manufacturers since the 1990’s, these large and sophisticated customers have been implementing energy efficiency for years, including many projects that were initiated and completed years prior to Act 129 implementation in anticipation of the expiration of electric rate caps,” said Sen. Boscola.  “Because of these realities, the vast majority of these large customers are being forced to participate in EE&C Plans that promise them no benefit while still costing between 2 percent and 5 percent of their total electricity spend.”

Act 129 Has Saved $2.2 Billion

The most recent Public Utility Commission annual report on the Act 129 Program documents a total of $2.2 billion in savings for consumers and 3.3 million megawatt hours of electricity over 3 years.

The report found for every $1 invested in energy efficiency through the Act 129 programs, $1.70 was achieved in energy savings for consumers.

“These initial results and determinations for Phase II demonstrate the success of the EE&C programs,” said Chairman Gladys M. Brown in a statement at today’s meeting.  “I commend Commission staff, the EDCs, and the energy efficiency service providers across the state for their continued work in this arena.”

“The report confirms, once again, that Pennsylvania's Act 129 energy efficiency programs are making the Commonwealth more energy efficient -- reducing energy use and helping businesses and residents save money,” said Matt Elliott, Keystone Energy Efficiency Alliance.  “Better yet, the programs are cost-effective and deliver net benefits to everyone that pays an electric bill.

"In addition to saving energy and saving money, the federal Department of Energy recently reported that energy efficiency supports 62,431 jobs in Pennsylvania,” Elliott explained.  “In fact, despite economy-wide ups and downs, Pennsylvania's energy efficiency industry has seen an average annual job growth rate of 7.5 percent year after year, for the past 7 years.”

“Today’s report demonstrates that smart state energy policy like Act 129 can deliver cost savings while also creating tens of thousands of jobs,” said Elliott.  “These are local Pennsylvania jobs - many of which could never be outsourced - and we applaud the legislature for having the foresight to enact 129, and to continue to support the programs over the years as energy savings and job creation add up, year over year.”

A copy of the report is available online.

For more information, visit the PUC’s Act 129 webpage or the Keystone Energy Efficiency Alliance’s Act 129 webpage.

[Posted: Oct. 20, 2017]

10/23/2017