The Public Utility Commission this week approved a plan that will allow PECO Energy Co. to begin fulfilling the requirements of the state’s Alternative Energy Portfolio Standards Act of 2004 sooner than required.

The commission voted 4-0 to allow the company to acquire alternative energy credits through a competitive procurement process in order to begin to meet its AEPS requirements.

Alternative energy credits were created as a tool to measure compliance with the AEPS Act. The credits act as a concrete way to determine if the electric distribution companies are using the required percentage of energy from alternative sources as required by the Act.

The commission also approved a motion by Commissioner Tyrone J. Christy that among other things provided that the commission would have three business days to review the auction results as opposed to a 24-hour review period provided in the settlement.

PECO’s compliance period for AEPS begins January 1, 2011, however, under the law, PECO may now begin acquiring alternative energy credits, “banking” those credits for use at the start of its compliance period. Banked credits may be used for up to two consecutive years.

AEPS 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 electric distribution companies and electric generation suppliers who must demonstrate their compliance on an annual basis. The level of alternative energy required gradually increases according to a 15-year schedule.

For more information, visit the PUC’s Alternative Energy webpage. An additional statement was issued by Commissioner James A. Cawley.

NewsClip: PUC Approves Lower Electric Rate for PPL

12/7/2007