Pennsylvania

Legislative activities

The Pennsylvania state legislature has passed legislation focusing on net-metering and interconnection standards. In 2004 the Pennsylvania state legislature directed the Pennsylvania Public Utility Commission (PUC) to establish net-metering and interconnection standards for certain renewable-energy systems, and expanded the net-metering legislation in 2007. (H.B. 1203) [2, 3]

“In February 2008, the Pennsylvania House of Representatives passed a bill that would mandate deployment of smart meters and demand response, set peak-demand reduction goals, and establish M&V standards (HB 2200)… In October 2008, the Senate passed its version of the bill. Later in October 2008, Governor Rendell signed HB 2200 into law, thereby creating Act 129.” The new law covers demand response and smart metering for all customer classes in Pennsylvania. [1]

Regulatory activities

By 1998, the Pennsylvania Public Utility Commission had approved rates for distributed generation and dealt with net metering by 2007. Time-of-Day rates were established through the Commission by 1998. They also approved demand side management programs by 1998, and had implemented Day-Ahead hourly pricing by 2007. [4, 5, 6]

As Pennsylvania is within the PJM footprint there is the opportunity for end-use customers to participate in demand response though curtailment service providers.

“In September 2006, the Pennsylvania Public Utility Commission opened a proceeding in which it reconvened its Demand-Side Response Working Group, which had been created initially in 2001 but had been dormant since 2004. The Commission tasked the reconvened Demand-Side Response Working Group, which has a subgroup focused on smart metering, to help investigate the issues addressed in the September 2006 Order initiating the proceeding. Namely, these issues are:

- “Energy utilities’ current efforts to assist their customers to reduce usage, increase energy efficiency, and implement demand side response programs (including implementation of time-based rates), and whether additional cost effective and reasonable steps can be taken to increase those efforts materially (and, if so, the nature of those activities and the costs that the utility or other entity and customers would incur to implement them).”
- “Whether Advanced Metering Infrastructure should be developed by Pennsylvania utilities, and, if so, the timeline and standards that should be established for the implementation of these systems for the various customer classes and the methods of sharing this information with customers, competitive energy suppliers, and other customer representatives.”

The Demand-Side Response Working Group filed, in June 2007, its report summarizing its activities. In the report, the group said that demand response directly and indirectly benefits ratepayers.” [1]

Distributed generation include qualifying cogeneration, small power production facilities, standby generation, and net metering facilities. The price for power is either contracted for with the utility based on the avoided cost or in the case of net metering the energy is priced according to the customer's rate schedule.

Time-of-Day rates break the cost for electricity into periods with demand priced on-peak shoulder-peak, or off-peak and energy priced on-peak or off-peak.

Day-Ahead hourly pricing is calculated by PJM Locational Marginal Price for the Duquesne Zone or Duquesne Residual Zone using the difference between scheduled hourly customer loads and actual metered loads.

Demand side management includes interruptible service and thermal energy storage. Interruptible service charges a reduced amount to allow for a contract portion of the customer's load to be curtailed at the company's request. Thermal energy storage allows the customer, with review by the company, to shift usage to off peak hours.

Utilities and Rate Schedules

Allegheny Power
- Allegheny Power Rates

Duquesne Light
- Duquesne Light Rates

First Energy Corp
- First Energy Corp

PECO
- PECO Rates

PPL Electric Utilities
- PPL Electric Utilities Rates

See the National Rural Electric Cooperative Association (NRECA) for information on consumer-owned Cooperatives: http://www.nreca.org/members/MemberDirectory/Pages/default.aspx

State-Level Incentives

Pennsylvania offers program, grants, loans and rebates for geothermal, wind, and solar.

More information can be found in the Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=PA

Additional Resources

State Energy Office:
- Pennsylvania Department of Environmental Protection Office of Energy and Technology Deployment

State Authority Dealing with Energy Regulation:
- Pennsylvania Public Utility Commission
- Docket Search: http://www.puc.state.pa.us/general/search.aspx

The Pennsylvania Code

Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=PA

References

[1] Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Officials, Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy, Fall 2008. URL: http://www.oe.energy.gov/DocumentsandMedia/NCEP_Demand_Response_1208.pdf
[2] Database of State Incentives for Renewables & Efficiency, Pennsylvania – Net Metering, 12/09/2009. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=PA03R&re=1&ee=1
[3] Database of State Incentives for Renewables & Efficiency, Pennsylvania Interconnection Standards, 06/17/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=PA07R&re=1&ee=1
[4]Allegheny Power, Pennsylvania Tariffs. URL: http://www.alleghenypower.com/Tariffs/PA/PAtariff.asp
[5]Duquesnes Light Schedule of Rates, 5/13/2010. URL: http://www.duquesnelight.com/customerservices/bills&payments/UnderstandingMyBill/Tariff24_32.pdf
[6]PPL, At Your Service, General Tariff – Table of Contents. URL: https://www.pplelectric.com/at-your-service/electric-rates-and-rules/current-electric-tariff/table-of-contents.aspx