Pennsylvania Energy Policy

Important Legislation

The Center for American Progress ranks Pennsylvania fifth among the states in terms of its committment to and achievements in the field of energy efficiency. In part, this is the result of legislative initiatives that have supported efforts at energy efficiency market transformation.

  • PA Act 129 Extension

    The PA Public Utility Commission has started the process of evaluating the cost-effectiveness of the Energy Efficiency & Conservation Programs and determining whether additional incremental consumption and peak demand reduction targets will be adopted and, if so, what those incremental reduction targets shall be.  Act 129 required Energy Efficiency & Conservation (EE&C) programs for the Commonwealth’s largest electric distribution companies and required that the Pennsylvania Public Utility Commission evaluate the costs and benefits of the EE&C programs by November 31, 2013.  Act 129 further directs that the Commission must set new incremental consumption and peak demand reductions, if the benefits of the Program and plans exceed the costs.

  • Tentative Implementation Order - The Act 129 Phase 2 EEC Program Tentative Implementation Order. From the Public Meeting of May 10, 2012. Docket Nos. M-2012-2289411 and M-2008-2069887.
    (Commissioner Gardner Statement - Commissioner Gardner Dissenting Statement - Commissioner Witmer Statement)

    1. Appendix 1 - Avoided Costs and General Model Inputs by EDC
    2. Appendix 2 - Residential Sector Data
    3. Appendix 2.2 and 2.3 - Measure Level TRC Rations by EDC and Levelized Costs by EDC
    4. Appendix 3 - Commercial/Industrial Sector Data
  • Secretarial Letter issued May 8, 2012 - Regarding the release of the Act 129 Pennsylvania Statewide Electric End Use and Saturation Studies. The Letter also announces a Stakeholders’ Meeting that will be held on Tuesday, June 5, 2012 at 1:00 PM in Hearing Room 1 of the Commonwealth Keystone Building, 400 North Street, Harrisburg, Pennsylvania, 17120. Docket No. M-2012-2289411.

          1. Pennsylvania Statewide Residential End-Use and Saturation Study

          2. Pennsylvania Statewide Commercial & Industrial End Use & Saturation Study

Following the creation of KEEA's 2007 Energy Action Agenda, KEEA developed legislation that would require electric utilities to conserve energy. Under the Special Energy Session called by Governor Rendell in April 2007, more than 50 bills were under consideration by the House and Senate. Because of the challenges posed by the pending expiration of electric rate caps, KEEA focused on legislation that would offer energy efficiency programs to utility customers. Ultimately, KEEA supported Special Session House Bill 2200 and Senate Bill 35. In October 2008, after meetings with legislators, lobby days, and support from other energy groups, KEEA ensured the passage of House Bill 2200 as Act 129, the Utility Energy Efficiency Act. The act takes significant steps towards energy efficiency, energy conservation, and the reduction of peak demand.

PA Act 129 requires each of the seven Pennsylvania electric distribution companies to reduce energy demand and consumption within its service territory. It requires a 1% reduction by May 31, 2011, a 3% reduction in consumption by May 31, 2013, and an attendant 4.5% reduction in peak demand by May 31, 2013. This represents a statewide energy conservation program of over $108 million per year.

KEEA continues to monitor the implementation of Act 129.

For details on the plans and progress, go to the PUC Act 129 web page.

For more information on the residential, business, and commercial programs designed by Pennsylvania's Utilities in response to Act 129, click here.

Full text of Act 129

  • Alternative Energy Portfolio Standards (AEPS) Act of 2004

According go the AEPS website, the act "requires that electric distribution companies and electric generation suppliers include a specific percentage of electricity from alternative resources in the generation that they sell to Pennsylvania customers." The resources are divided into two tiers, with special regulations about the share of electricity to be derived from solar photovoltaics.

Tier I includes:

1. Solar photovoltaic energy
2. Solar thermal
3. Wind power
4. Low-impact hydropower
5. Geothermal energy
6. Biologically derived methane gas (including landfill gas)
7. Fuel cells
8. Biomass energy
9. Coal mine methane
10. Black Liquor (PA only)
11. Large-scale hydropower (certain restrictions apply)

In 2007, 1.5% of electric sales were required to come from Tier I resources. By 2021, 8% of electric sales must come from Tier I resources.

Tier II includes:

1. Waste coal
2. Distributed generation systems
3. Demand-side management
4. Large-scale hydropower
5. Municipal solid waste
6. Generation of electricity utilizing by-products of the pulping process and wood
7. Integrated combined coal gasification technology

 In 2007, 4.2% of electric sales were required to come from Tier II resources. By 2021, 10% of electric sales must come from Tier II resources.

Solar photovoltaic energy was required to supply 0.0013% of electric sales. By 2021, solar photovoltaic energy will supply 0.5% of electric sales.

For more information on the AEPS program, click here.

Full text of the AEPS legislation

  • Alternative Energy Investment Act of 2008

The Alternate Energy Investment Act will provide $92.5 million for energy efficiency improvements in homeowners and small businesses statewide. The act will also invest more than $200 million in solar photovoltaic systems and will help fund renewable energy projects.

Click here to read a concise summary of the law prepared by Roger E. Clark of The Reinvestment Fund.

Full text of the Alternative Energy Investment Act


KEEA Testimony

Reports on Pennsylvania

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