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RPS Pennsylvania
(Last updated December 17th, 2004)
RENEWABLE PORTFOLIO STANDARDS—STATE SUMMARY
I. POLICY
II. ADMINISTRATION
III. FINANCING
IV. CRITICAL ELEMENTS
V. POLICY/PROGRAM ASSESSMENT
VI. PUBLIC OUTREACH
AND EDUCATION
I. POLICY
Date Enacted
December 7, 2004
Effective Date
March 7, 2005
Time Period
2007-2020
Extensions to Time Period
Extensions have not been addressed at this time. The Act states
that generation requirements at the end of the time period
continue to be met after the time period ends.
Applicable Laws, Orders, and Regulations
Senate Bill 1030: Alternative Energy Portfolio Standards Act.
http://www2.legis.state.pa.us/WU01/LI/BI/BT/2003/0/SB1030P1973.pdf
Description
The Pennsylania legislature recently passed into law the Alternative
Energy Portfolio Standards Act. Energy sources are split into
two tiers, Tier 1 being pure renewables such as wind, solar,
etc., while Tier 2 includes waste coal, coal gasification,
and demand-side management. Tier 1 generation starts at 1.5%
in 2007 and increments .5% a year to reach 8% by 2020, while
Tier 2 must contribute 10% by 2020. Because of these separate
requirements, this Act is essentially a Renewable Portfolio
Standard similar to other states' of 8%, with an additional
energy standard of 10%. In the Tier 1 category there is a
set-aside percentage requirement for solar generation. The
Public Utility Commission will also set up an independent
entity to manage an alternative energy credits trading system.
Program Name
Alternative Energy Portfolio Standard
Standard
|
Year
|
Tier 1
Generation Requirement |
Tier
2 Generation Requirement |
Solar
Generation Requirement |
2007
|
1.5
% |
4.2
% |
0.0013
% |
2008
|
2
% |
4.2
% |
0.0013
% |
2009
|
2.5
% |
4.2
% |
0.0013
% |
2010
|
3
% |
4.2
% |
0.0013
% |
2011
|
3.5
% |
6.2
% |
0.0203
% |
2012
|
4
% |
6.2
% |
0.0203
% |
2013
|
4.5
% |
6.2
% |
0.0203
% |
2014
|
5
% |
6.2
% |
0.0203
% |
2015
|
5.5
% |
6.2
% |
0.0203
% |
2016
|
6
% |
8.2
% |
0.25
% |
2017
|
6.5
% |
8.2
% |
0.25
% |
2018
|
7
% |
8.2
% |
0.25
% |
2019
|
7.5
% |
8.2
% |
0.25
% |
2020 and after
|
8
% |
10
% |
0.5
% |
Eligibility Date
No eligibility date is discussed.
Generation Limit
No generation limits are discussed.
Incremental Capacity
Incremental capacity is not discussed.
Fuels/Technologies
Tier 1:
- Solar photovoltaics
- Wind power
- Low-impact hydropower
- Geothermal energy
- Biologically derived methane gas
- Fuel cells
- Biomass energy
- Coal mine methane
Tier 2:
- Waste coal
- Distributed generation systems
- Demand-side management
- Large-scale hydropower, including pumped storage
- Municipal solid waste
- Generation of electricity utilizing by-products of the
pulping process and wood manufacturing process including
bark, wood chips, sawdust and lignin in spent pulping liquors
- Integrated combined coal gasification technology
II. ADMINISTRATION
Administering Entities
Pennsylvania Public Utility Commission
Type of Entity
State
Administrative Contacts
Pennsylvania Public Utility Commission
Wendell F. Holland, Chairman
PO Box 3265
Harrisburg , PA 17105-3265
Phone: 717-787-1031
Website: http://www.puc.state.pa.us/
III. FINANCING
Funding Level
No funding is explicitly specified.
Funding Source
Costs of implementing the alternative energy standard will be
recovered on rate-payers' bills through the automatic energy
adjustment clause as a cost of generation supply. If a provider
voluntarily generates or purchases alternative energy credits
during exemption from the standard under a cost recovery period,
those costs are deferred as a regulatory asset and recovered
during the first year after the cost recovery period ends.
Cost Cap
No cost cap is specified.
Charge
.Automatic energy adjustment charge on rate-payers' bills.
IV. CRITICAL ELEMENTS
Trading
The Commission is to develop an alternative energy credits trading
system and assign an independent entity to administer the credits.
One credit counts for one MWh of generation, and may be counted
towards meeting the generation requirements set forth in the
alternative energy standard. A registry of all credit sales
and purchases will be kept and made available. Credits produced
by energy efficiency, load management, and demand-side management
are to follow a depreciation schedule to be worked out.
Green Pricing
Green pricing programs are not addressed.
Certification
The independent entity created by the commission to serve as
adminstrator of the alternative energy credits trading system
will be responsible for certification of alternative energy
credits.
Out-of-State
Only energy that is generated within Pennsylvania, or within
the boundaries of any regional transmission system that serves
part of Pennsylvania, may count towards compliance with the
alternative energy standards. If a utility or generator sells
electricity in another state that has an RPS, the provider must
document to the commission that it is satisfying the RPS in
that other state, and it may not "double-count" -
any generation used to satisfy the RPS in another state may
not also be used to satisfy Pennsylvania's.
Self-generation
Within nine months of the effective date of this act, the commission
must develop interconnection and net-metering standards for
customer-sited generation. These standards must be consistent
with standarads in other states served by any regional transmission
organization that serves part of Pennsylvania.
Flexibility/Exemptions
Cost Recovery Period
As part of the transition to deregulation, the commission set
up with some utilities a period or recovering costs through
competitive transition charges, or in some cases through a commission-approved
rate plan. Utilities are exempt from complying with the alternative
energy standard for the duration of their cost recovery period,
but no longer than Dec. 31, 2010. At the end of the cost recovery
period, utilities must then comply at the percentage level currently
in effect.
Force Majeure
Upon the request of a provider, or of its own will, the PUC
can at any time decide that there are not sufficient alternative
energy resources available to comply with the standard, and
may modify the generation requirements.
Banked Credits
Alternative energy credits generated or purchased in excess
of the requirement for a given year may be banked for later
use for up to two subsequent years. Utilities exempt from the
standard during the cost recovery period may also bank credits,
and use them for the first two years after their exemption ends.
Alternative Compliance Payments
If at the end of the year the commission determines that a provider
has not met the requirements of the alternative energy standard,
the commission may impose an alternative compliance payment.
For all except the solar generation requirement, the alternative
compliance payment will be $45 times the number of additional
credits needed to meet the requirement. For the solar requirement,
alternative payment will be 200% of the average market value
of solar energy credits sold during the year.
Contracts
No specific information or requirements for contracts are discussed.
V. POLICY/PROGRAM ASSESSMENT
Reporting Requirement
A reporting period is to be worked out for reporting of alternative
energy credit transactions and compliance. The commission is
required to submit a report annually to the Environmental Resources
and Energy Committees of the both the House and Senate. This
report should cover all areas of the program.
Sanctions
The public utility commission may impose alternative compliance
payments as discussed in the Flexibility section above in the
case that a provider does not meet the requirements of this
act at the end of the year.
Assessing Entity
Pennsylvania Public Utility Commission
Report Date
To be determined.
Report Name
Not yet available.
Status
Governer Rendell signed the bill into law on December 7th. The
Act is to become effective 90 days after being signed.
Cost Information
As the order has yet to be implemented, cost information is
still unavailable.
Assessment Contact
Pennsylvania Public Utility Commission
Wendell F. Holland, Chairman
PO Box 3265
Harrisburg , PA 17105-3265
Phone: 717-787-1031
Website: http://www.puc.state.pa.us/
VI. PUBLIC OUTREACH AND EDUCATION
Outreach/Customer Education
Pennsylvania Public Utility Commission Consumer Education
http://www.puc.state.pa.us/general/consumereducation.aspx
Press Releases
Governer Rendell Signs Measure Mandating Clean-Energy Portfolio
Standard For PA
http://www.state.pa.us/papower/cwp/view.asp?A=11&Q=439442
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