PRINTER'S NO. 1777
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1412
Session of
2017
INTRODUCED BY BARRAR, SAINATO, BARBIN, BOBACK, D. COSTA,
DRISCOLL, FARRY, GILLEN, LONGIETTI, O'NEILL, RAVENSTAHL,
RYAN, SOLOMON, WARD AND ZIMMERMAN, MAY 19, 2017
REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY
PREPAREDNESS, MAY 19, 2017
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in restructuring of electric utility
industry, providing for microgrid and energy storage.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 66 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
ยง 2816. Microgrid and energy storage.
(a) Pilot program.--An electric distribution company may
propose energy storage or microgrid pilot programs for review
and approval by the commission. In determining whether a pilot
program under this section is in the public interest, the
commission shall consider the potential of the pilot program to:
(1) facilitate the use of diverse electric supply
options in this Commonwealth, including distributed energy
resources; and
(2) enhance electric distribution, resiliency and
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operational flexibility.
(b) Rulemaking.--Within five years of the date the first
pilot program is approved under subsection (a), the commission
shall evaluate the results of each approved pilot program and
determine the circumstances under which the ownership,
development and deployment of energy storage and microgrids by
electric distribution companies may be in the public interest.
Within 60 days of the determination, the commission shall
commence a rulemaking to establish regulations to further the
deployment of energy storage and microgrids consistent with the
objectives under subsection (a)(1) and (2). Nothing under the
rulemaking shall require an electric distribution company to
own, develop or deploy energy storage or microgrids.
(c) Recovery.--An electric distribution company shall be
permitted to recover in the electric distribution company's
distribution rates established under section 1308 (relating to
voluntary changes in rates) a pretax return on, and a return of,
the original cost of an energy storage facility or microgrid
constructed pursuant to an approved pilot program or regulations
promulgated under this section and the reasonable, prudently
incurred expenses to operate and maintain the facility.
(d) Wholesale market participation.--Energy storage and
microgrids authorized under this section may participate in
wholesale energy markets with net proceeds from participation
credited to customers.
(e) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Distributed energy resource." Any of the following:
(1) A distributed generation resource.
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(2) Energy efficiency.
(3) Energy storage.
(4) Electric vehicles and charging infrastructure.
(5) Demand response technology.
"Energy storage." A commercially available technology that
is capable of absorbing energy, storing the energy for a period
of time and thereafter dispatching the energy.
"Island mode." The physical disconnection of a microgrid and
customers within the microgrid from the distribution system of
the electric distribution company.
"Microgrid." A group of interconnected loads and distributed
energy resources within clearly defined electrical boundaries
that acts as a single controllable entity with respect to an
electric distribution company's distribution system which can
connect to and disconnect from a distribution system and operate
either connected to the distribution system or in island mode.
Section 2. This act shall take effect in 60 days.
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