The Public Utility Commission this week started the rulemaking process that will govern compliance with the Alternative Energy Portfolio Standards Act by electric distribution companies (EDC) and electric generation suppliers (EGS).

“The Commission recognizes the importance of this Act to protecting our environment and promoting economic development and continues to move toward full implementation of this Act without delay,” said Commission Chairman Wendell F. Holland. “We look forward to receiving comments on this proposed rulemaking as we strive to provide a feasible framework for compliance by both electric companies and generation suppliers.”

The Commission voted 3-2 to seek comment on the proposed uniform standards and processes that will determine compliance by EDCs and EGSs. Commissioner Kim Pizzingrilli dissented on the portion dealing with geographic scope and offered a statement. Commissioner Terrance J. Fitzpatrick dissented and issued a statement outlining his reasons.

The rulemaking reflects the Commission’s understanding that the Act is intended to promote the efficient utilization of the region’s alternative energy resources in a manner that will yield significant economic and environmental benefits for Pennsylvania.

The Alternative Energy Portfolio Standards Act generally requires that a certain percentage of all electric energy sold to retail customers be derived from alternative energy sources such as solar, wind, hydropower, geothermal, biomass, and demand side management resources.

The law applies to both EDCs and EGSs who must demonstrate their compliance on an annual basis. The level of alternative energy required gradually increases according to a 15-year schedule.

The proposed rulemaking addresses provisions such as:

· EDC and EGS obligations;

· Fuel and technology standards for alternative energy sources;

· Alternative energy system qualification, credit certification and credit program administrator;

· Alternative compliance payments;

· Mechanisms for circumstances beyond the control of the EDC or EGS (force majeure);

· Cost recovery; and

· Banking of alternative energy credits.

The proposed rules will be published in the Pennsylvania Bulletin. Comments are due 60 days from that publication date. Specific instructions on how to submit comments as well as the deadlines for submission will be available as part of the Commission’s entered order.

Visit the PUC’s Alternative Energy webpage for more information.

7/21/2006