Pennsylvania’s Act129 requires each of the seven major Electric Distribution Companies (EDCs) in Pennsylvania to adopt a plan to reduce energy demand and consumption within its service territory. The minimum saving requirements for each EDC is 1% by May 2011 and 3% by May 2013.  The Act also requires a 4.5 percent reduction in peak demand by May 31,2013.

The Pennsylvania Public Utility Commission (PUC) has established an energy efficiency and conservation program that included the plan requirements for most of the state’s electric distribution companies (EDCs) to reduce energy demand and consumption within its service territories.

As required under the Act, the Commission established:

• Consumption forecast guidelines;
• Requirements for filing peak demand data;
• Standards to ensure measures are applied equitably to all customer classes;
• EDC cost recovery guidelines; and
• Guidelines for determining allowable costs and allocation of costs to customer classes.

The Commission also established processes for:

• Conservation service provider contract review;
• Energy efficiency and conservation plan approval;
• Plan effectiveness evaluation;
• Cost-benefit analysis approval;
• Consumption reduction requirement analysis;
• Measurement of annual consumption and peak demand reductions;
• Recommendations for additional measures;
• Competitive bidding and approval of contracts with conservation service providers;
• Compliance with consumption reduction requirements; and
• Participation of conservation service providers.

Act 129 adds several new sections to, and amends several existing sections of the Public Utility Code. The Commission will continue to implement the Act in phases. Subsequent phases of the Commission’s Act 129 implementation process will address EDC and default service provider responsibilities; conservation service providers; smart meter technology; time-of-use rates; real-time pricing plans; default service procurement; market misconduct; alternative energy sources; and cost recovery.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

Allegheny Power & Pennsylvania Act 129

In response to Pennsylvania’s Act 129, Allegheny has proposed and received approval for energy efficiency programs for residential, commercial and industrial customers. Customers will be receiving specific information on these new Watt Watchers programs in the coming months. These programs are designed to help consumers use electricity efficiently, curb consumption and reduce overall demand for electricity.

“Allegheny is moving aggressively to introduce these new energy efficiency programs, which offer incentives for homes and businesses to save energy and money. We have designed a portfolio of programs that will provide meaningful reductions in energy usage and with the implementation of smart meters, we will offer customers new rate options and other tools for customers to better manage their electric bills.” -- Rodney Dickens, President of Allegheny Power.

The programs approved by the Commission includes:

• Rebates for customers that purchase high efficiency appliances, lighting and heating and cooling systems;
• Residential home audits and rebates toward implementing audit recommendations;
• Home audit, weatherization and air conditioner replacement programs for low-income customers;
• New rate options that will provide financial incentives for customers to lower their demand for electricity or shift their usage to lower-priced times;
• Incentives for customers who install in-home devices that reduce electric usage when demand is highest; and

Various programs for commercial, industrial, government and non-profit customers to sincrease energy efficiency and conservation.

The Act 129  programs are funded through customer rates. The typical residential customer using 1,000 kilowatt-hours a month should be seeing an increase of about $2 per month. Customers who take advantage of one or more of the new programs have the opportunity to offset that amount and save much more over the years. Programs enabled by smart meters will be available in 2011.

Article condensed from Allegheny Power Web Site

Article condensed from Aelue – The Energy Savings Co. Web Site