The Public Utility Commission this week released the 2007 Annual Report of the Alternative Energy Portfolio Standards Act of 2004 saying that two electric distribution companies and five electric generation suppliers that had compliance obligations in 2007 have met, and in some instances exceeded, their requirements.

The report was prepared by the PUC Bureau of Conservation, Economics and Energy Planning in cooperation with the Department of Environmental Protection.

Between February 28, 2007, and May 31, 2007, Penn Power, UGI-Electric and five suppliers sold 1,452,807 megawatt hours of electricity and purchased 82,877 credits to meet their obligations. The suppliers include Constellation New Energy, Dominion Retail, Sempra, FirstEnergy Solutions and Strategic Energy.

During this reporting period, 5.7 percent of electricity sold to retail customers in the two utility service areas was generated from alternative energy resources. Tier I resources, such as wind, low-impact hydro and solar energy, made up 1.5 percent. Solar photovoltaic energy sales represented 0.0018 percent of the Tier I percentage. Tier II resources, such as waste coal, made up 4.2 percent.

The AEPS Act requires that a certain percentage of all electric energy sold to retail customers within the Commonwealth be derived from alternative energy sources. By 2021, EDCs and EGSs must supply 18.5 percent of electricity using alternative energy resources.

The percentage of Tier I, Tier II and solar photovoltaic resources gradually increases over this period. The Act applies to both electric distribution companies and electric generation suppliers, who must demonstrate their compliance on an annual basis. However, compliance with the portfolio standards is deferred until an electric distribution company's generation rate caps expire.

AEPS compliance is verified and tracked through an alternative energy credits program, in which EDCs and EGSs meet their obligations by purchasing individual credits. Each credit represents one megawatt hour of alternative energy generation.

Visit the PUC Alternative Energy webpage for more information.

5/30/2008