An affordable energy future for Pennsylvania

Pennsylvania lawmakers passed Act 129 in 2008, a measure aimed at curtailing energy demand, creating jobs, and reducing pollution. The Public Utility Commission is now considering whether certain programs required under the act are working and should continue.

The answer to that question is a resounding yes.

In fact, Act 129 has been even more successful at conserving energy and reducing electricity usage than many anticipated. The goal in Phase I was to reduce electricity use statewide by 1 percent by 2011 and 3 percent by 2013.

So far, all but one power company have exceeded the goals. The result has been an overall savings of 2,075 gigawatt-hours, a savings for customers of roughly $278 million each year.

Given the success so far, it makes little sense for the PUC to lower the goals in Phase II. The utilities have already demonstrated that they can save more than 1 percent per year. If anything, we should raise the bar.

Higher standards could be achieved by offering better incentives. The current law only carries penalties for failing to meet the savings goals. However, the PUC could also offer incentives to utilities for exceeding the targets.

Pennsylvania needs to become more energy-efficient, not less. In fact, my group, the Keystone Energy Efficiency Alliance, commissioned a study that found 35 percent of Pennsylvania's energy needs could be met through energy efficiency and conservation. We estimate that such a move would save $5 billion a year and create 27,000 new jobs by 2025.

Going forward, energy markets will continue to be volatile and costs will continue to rise as world oil supplies tighten. The need to reduce our dependence on foreign oil is clear. Therefore, Pennsylvania must strengthen investment in homegrown energy sources, especially energy efficiency, which is clean, safe, cheap, and quick to deploy. Unlike supply-side resources, energy efficiency and demand response can reduce both customers' bills and the price of energy.

We believe that the goals of Act 129 can be maintained at 1 percent a year. The utilities can realize higher savings goals by working closely with local governments on complementary initiatives such as Commercial Building Benchmarking, which was recently introduced in Philadelphia, and by continuing to improve their programs, including incentivizing greater investment in our schools and public facilities and by recognizing the value of reducing demand.

The PUC will decide whether to continue on the path to a more sustainable, affordable energy future, or whether to slow down and start drifting back to a higher-cost resource mix.

Failing to fully invest in energy efficiency not only leaves Pennsylvanians exposed to rising energy prices, but also slows our economic growth.

For more information on Act 129, visit www.puc.state.pa.us/electric/Act_129_info.aspx, or e-mail Liz Robinson at lizr@ecasavesenergy.org.

The original article can be found here.