SENATE AMENDED PRIOR PRINTER'S NOS. 3089, 3176, 3218, PRINTER'S NO. 4429 3233
No. 2200 Session of 2008
INTRODUCED BY GEORGE, McCALL, BELFANTI, CALTAGIRONE, CONKLIN, DALEY, GOODMAN, HARHAI, HARKINS, KULA, MANDERINO, McGEEHAN, VITALI, J. WHITE, WALKO, SURRA, DeLUCA, DERMODY, GRUCELA, JOSEPHS, JAMES, GINGRICH, FREEMAN, K. SMITH, McILVAINE SMITH, YOUNGBLOOD AND FRANKEL, JANUARY 15, 2008
SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, IN SENATE, AS AMENDED, SEPTEMBER 23, 2008
AN ACT 1 Amending Title 66 (Public Utilities) of the Pennsylvania 2 Consolidated Statutes, providing for recovery of certain <-- 3 labor relations expenses; further providing for definitions; 4 providing for adoption of energy efficiency and demand-side 5 response; and further providing for duties of electric 6 distribution companies. FURTHER PROVIDING FOR DEFINITIONS; <-- 7 PROVIDING FOR ENERGY EFFICIENCY AND CONSERVATION; FURTHER 8 PROVIDING FOR DUTIES OF ELECTRIC DISTRIBUTION COMPANIES; AND 9 PROVIDING FOR PROCUREMENT. 10 The General Assembly of the Commonwealth of Pennsylvania 11 hereby enacts as follows: 12 Section 1. Title 66 of the Pennsylvania Consolidated <-- 13 Statutes is amended by adding a section to read: 14 § 1329. Recovery of certain labor relations expenses. 15 No public utility may charge its customers as a permissible 16 operating expense for ratemaking purposes any portion of the 17 direct or indirect cost of meetings, publications, consultants, 18 attorneys or other professional services and expenses associated
1 with the utility's efforts to dissuade the employees of the 2 utility, or the employees of any affiliated interest of the 3 utility as defined in section 2101 (relating to definition of 4 affiliated interest), from becoming or remaining a member in, or 5 otherwise being represented by, any labor union. 6 Section 2. Section 2803 of Title 66 is amended by adding 7 definitions to read: 8 § 2803. Definitions. 9 The following words and phrases when used in this chapter 10 shall have the meanings given to them in this section unless the 11 context clearly indicates otherwise: 12 "Affiliated interest." As defined in section 2101 (relating 13 to definition of affiliated interest). 14 * * * 15 "Cost effective." In relation to a program being evaluated, 16 satisfaction of the total resource cost test. 17 * * * 18 "Demand-side response." Load management technologies, 19 management practices or other strategies employed by retail 20 customers that decrease peak electricity demand or shift demand 21 from on-peak to off-peak periods provided that: 22 (1) The measure is installed on or after the effective 23 date of this section at the service location of a retail 24 customer. 25 (2) The measure reduces the peak demand or cost of 26 energy by the retail customer. 27 (3) The costs of the acquisition or installation of the 28 measure are directly incurred in whole or in part by the 29 electric distribution company. 30 * * * 20080H2200B4429 - 2 -
1 "Energy efficiency." Technologies, management practices or 2 other strategies or measures employed by retail customers that 3 reduce electricity consumption provided that: 4 (1) The measure is installed on or after the effective 5 date of this definition at the service location of a retail 6 customer. 7 (2) The measure reduces the consumption of energy by the 8 retail customer. 9 (3) The costs of the acquisition or installation of the 10 measure are directly incurred in whole or in part by the 11 electric distribution company. 12 "Independent entity." An entity with no direct or indirect 13 ownership, partnership or other affiliated interest with an 14 electric distribution company. 15 "Peak demand." The highest electrical requirement occurring 16 during a specified period. For an electric distribution company, 17 the term means the sum of the metered consumption for all retail 18 customers over that period. 19 "Real-time price." A rate that directly reflects the 20 different cost of energy during each hour. 21 * * * 22 "Smart meter technology." Technology, including, but not 23 limited to, metering technology and network communications 24 technology capable of bidirectional communication and that 25 records electricity usage on at least an hourly basis, including 26 related electric distribution system upgrades to enable the 27 technology. The technology shall provide customers with direct 28 access to and use of price and consumption information. The 29 technology shall also: 30 (1) Directly provide customers with information on their 20080H2200B4429 - 3 -
1 hourly consumption. 2 (2) Enable time-of-use rates and real-time price 3 programs. 4 (3) Effectively support the automatic control of the 5 customer's electricity consumption by one or more of the 6 following as selected by the customer: 7 (i) the customer; 8 (ii) the customer's utility; or 9 (iii) a third party engaged by the customer or the 10 customer's utility. 11 "Time-of-use rate." A rate that reflects the costs of 12 serving customers during different time periods, including off- 13 peak and on-peak periods, but not as frequently as each hour. 14 "Total resources cost test." A standard test that is met if, 15 over the effective life of the program, the avoided supply-side 16 monetary costs are greater than the monetary costs of the 17 demand-side programs borne by both the electric distribution 18 company and the participants. 19 * * * 20 Section 3. Title 66 is amended by adding a section to read: 21 § 2806.1. Adoption of procedures encouraging energy efficiency 22 and demand-side response. 23 (a) Program.--The commission shall develop a program to 24 provide for the implementation of cost-effective programs that 25 reduce energy demand and consumption within the service 26 territories of all electric distribution companies throughout 27 this Commonwealth. The program shall include, but is not limited 28 to, the following: 29 (1) Selecting a program administrator to develop and 30 oversee the delivery of energy efficiency and demand-side 20080H2200B4429 - 4 -
1 response programs within the service territory of each 2 electric distribution company within this Commonwealth. 3 (2) Implementing the necessary administrative and 4 financial mechanisms that will enable the program 5 administrator to develop and oversee the provision of energy 6 efficiency and demand-side response programs within the 7 service territory of each electric distribution company 8 within this Commonwealth, including the levying of 9 assessments in accordance with sections 510 (relating to 10 assessment for regulatory expenses upon public utilities), 11 1307 (relating to sliding scale of rates; adjustments) and 12 1308 (relating to voluntary changes in rates). The commission 13 shall not approve or implement and shall not assess or charge 14 to customers the costs of energy efficiency or demand- 15 response programs to the extent that the costs of such 16 programs exceed 2% of the total annual revenues of the 17 electric distribution company from all sources, including 18 default service generation revenues as of January 1, 2007. 19 This funding limit shall not include amounts provided for by 20 the low-income usage reduction programs established under 21 regulations at 52 Pa. Code Ch. 58 (relating to residential 22 low income usage reduction programs). 23 (3) Implementing the necessary administrative and 24 financial mechanisms that facilitate a system of third-party 25 entities to deliver all or portions of the energy efficiency 26 and demand-side response programs within the service 27 territory of each electric distribution company within this 28 Commonwealth, including the levying of assessments in 29 accordance with sections 510, 1307 and 1308. The commission 30 may order the electric distribution company to pay the third- 20080H2200B4429 - 5 -
1 party entity for services rendered in an electric 2 distribution company's respective service territory pursuant 3 to this section. The electric distribution company may be a 4 third-party entity. 5 (b) Selection of program administrator.--The commission 6 shall implement the following procedures when selecting a 7 program administrator: 8 (1) The commission shall prepare a request for proposals 9 for a program administrator to provide for the development 10 and delivery of the energy efficiency and demand-side 11 response programs in the service territories of all electric 12 distribution companies and shall make the request for 13 proposals available for public comment. 14 (2) The commission shall, within 60 days of the 15 completion of the public comment period, issue the final 16 request for proposals. 17 (3) The commission shall, based on a competitive bid 18 process, select an independent entity to serve as the energy 19 efficiency and demand-side response program administrator. 20 (4) The commission shall include as a part of its 21 agreement with the program administrator a system of 22 performance parameters and a financial mechanism that 23 provides incentives for exceeding established performance 24 parameters and penalties for third parties not meeting 25 established performance parameters. 26 (c) Powers and duties of program administrator.--The program 27 administrator shall have powers and duties assigned by the 28 commission. The powers and duties shall include, but not be 29 limited to: 30 (1) Soliciting through a competitive procurement process 20080H2200B4429 - 6 -
1 within each electric distribution company service territory a 2 program of providing energy efficiency and demand-side 3 response programs to residential, commercial and industrial 4 customers utilizing third-party entities. 5 (2) Ensuring that each proposal includes, but is not 6 limited to: 7 (i) A clear delineation of how the program will be 8 conducted. 9 (ii) The types of specific program measures to be 10 offered. 11 (iii) The cost and benefit of each program to be 12 offered. 13 (iv) A process for monitoring and verifying results, 14 data collection and management procedures, program 15 evaluation processes and financial management strategies. 16 (3) In its review of each proposal received: 17 (i) Taking into account the unique circumstances of 18 each electric distribution company's service territory. 19 (ii) Finding that each program is cost effective and 20 that the portfolio of programs is designed to provide 21 every affected customer class with the opportunity to 22 participate and benefit economically. 23 (iii) Determining the cost-effectiveness of energy 24 efficiency and demand-side response measures using the 25 total resource cost test. 26 (4) Recommending to the commission those entities best 27 suited to provide energy efficiency and demand-side response 28 programs within the service territory of each electric 29 distribution company. 30 (5) In the event no qualified proposals are received 20080H2200B4429 - 7 -
1 that meet the required plan goals in an electric distribution 2 company service territory to conduct the program activities: 3 (i) Issuing a subsequent request for proposals with 4 plan goals that are reduced no more than necessary to 5 obtain qualified proposals to provide program activities. 6 The lowered plan goals for energy efficiency and demand- 7 side response shall only be in effect for that year. 8 (ii) In subsequent years, utilizing the plan goals 9 unless no qualified proposals are received to conduct the 10 program activities that meet the plan goals, the program 11 administrator shall issue a subsequent request for 12 proposals in accordance with the procedures identified in 13 this subparagraph. 14 (6) Executing agreements on behalf of the commission 15 with the selected entity in each electric distribution 16 company service territory to conduct the energy efficiency 17 and demand-side response program. As part of these agreements 18 the program administrator shall ensure that: 19 (i) The programs offered by the selected entity are 20 provided equitably across all customer classes. 21 (ii) A clearly defined process for financial 22 compensation for the entity delivering the program which 23 is tied to defined goals for performance regarding 24 program activities accomplished, energy cost savings on a 25 per-customer basis and utility-wide basis and overall 26 energy and peak demand reduction is established. 27 (iii) A system of incentives and penalties for 28 performance of contractual activities above and below 29 predetermined levels is in place. 30 (iv) There is a set contract term which may include 20080H2200B4429 - 8 -
1 an initial three-year term with renewal terms of varied 2 length. 3 (7) Submitting reports to the commission at such times 4 and in such manner as the commission directs. 5 (d) Commission review of recommendations.--The commission 6 shall review the recommendations made by the program 7 administrator regarding those entities best suited to provide 8 energy efficiency and demand-side response programs within the 9 service territory of each electric distribution company. The 10 commission shall approve or disapprove the recommendations made 11 by the program administrator. 12 (1) The commission review of the recommendations of the 13 program administrator shall be limited to ensuring that: 14 (i) There is no evidence of fraud or market abuse. 15 (ii) Any costs entered into are borne by the 16 appropriate parties and that costs, including the costs 17 of subsection (c)(6)(iii) incentives, related to the 18 provision of the contracted services are borne by the 19 appropriate customer class. 20 (iii) There will be provided, in a cost-effective 21 manner, a program that provides energy efficiency and 22 demand-side response measures to all customer classes 23 throughout the service territory of each electric 24 distribution company. 25 (2) If the commission approves a third-party entity to 26 conduct the program, the commission shall ensure the program 27 administrator finalizes the agreement between the commission 28 and the third-party entity selected to provide the program of 29 energy efficiency and demand-side response. 30 (3) In the event the commission disapproves the 20080H2200B4429 - 9 -
1 recommendation of the program administrator, the commission 2 shall provide a rationale for this decision and direct the 3 program administrator on a course of action. 4 (e) Plan goals.--The program administrator shall ensure that 5 each proposal submitted by a third-party entity to deliver a 6 program of energy efficiency and demand-side response measures 7 includes meeting the following energy saving goals: 8 (1) The following relate to energy efficiency goals: 9 (i) By May 31, 2011, total annual deliveries to 10 retail customers of electric distribution companies shall 11 be reduced by a minimum of 1%. This load reduction shall 12 be measured against the expected load forecasted by the 13 commission for June 1, 2010, through May 31, 2011, based 14 on load for the period June 1, 2007, through May 31, 15 2008, with provision made for weather adjustments and 16 extraordinary load that the electric distribution company 17 must serve. The commission shall determine and make 18 public the forecasts to be used for each electric 19 distribution company no later than August 31, 2008. The 20 program administrator shall ensure that a third-party 21 entity meets the goals contained in this section through 22 the implementation of a program of energy efficiency 23 measures throughout the service territory of the electric 24 distribution company. 25 (ii) By May 31, 2013, total annual deliveries to 26 retail customers of electric distribution companies shall 27 be reduced by a minimum of 2.5%. This load reduction 28 shall be measured against the expected load forecasted by 29 the commission for June 1, 2012, through May 31, 2013, 30 based on load for the period June 1, 2007, through May 20080H2200B4429 - 10 -
1 31, 2008, with provision made for weather adjustments and 2 extraordinary load that the electric distribution company 3 must serve. The commission shall determine and make 4 public the forecasts to be used for each electric 5 distribution company no later than August 31, 2008. The 6 program administrator shall ensure that a third-party 7 entity meets the goals contained in this section through 8 the implementation of a program of energy efficiency 9 measures throughout the service territory of the electric 10 distribution company. 11 (iii) By November 30, 2013, the program 12 administrator shall evaluate the costs and benefits of 13 these energy efficiency and conservation programs. If the 14 benefits have been shown to exceed the costs, consistent 15 with the total resource cost test, the program 16 administrator, in consultation with the commission, shall 17 set additional, incremental energy efficiency and 18 conservation goals for the period ending May 31, 2018. 19 (iv) After May 31, 2018, the program administrator 20 shall continue to evaluate the costs and benefits of 21 efficiency and conservation measures and, in consultation 22 with the commission, may adopt additional incremental 23 load reduction standards for electric distribution 24 companies. 25 (2) The following relate to demand-side response 26 measures: 27 (i) Cost-effective demand-side response measures to 28 reduce peak demand by a minimum of 4% in the 100 hours of 29 highest demand with provision made for weather 30 adjustments and extraordinary load that the electric 20080H2200B4429 - 11 -
1 distribution company must serve shall be implemented in 2 each electric distribution company's service territory. 3 This reduction will be measured against the electric 4 distribution company's peak demand in the 100 hours of 5 greatest demand for June 1, 2007, through May 31, 2008. 6 The reductions shall be accomplished by May 31, 2012. 7 (ii) By November 30, 2012, the program administrator 8 shall compare the total costs of these demand-side 9 response measures to the total savings in energy and 10 capacity costs to retail customers of this Commonwealth. 11 If the benefits have been shown to exceed the costs, 12 consistent with the total resource cost test, the 13 commission shall order additional peak demand reductions 14 for the 100 hours of greatest demand or an alternative 15 measure adopted by the commission. The reductions shall 16 be measured from the electric distribution company's peak 17 demand for the period from June 1, 2011, through May 31, 18 2012. The mandated reductions shall be accomplished no 19 later than May 31, 2017. 20 (iii) After May 31, 2017, the program administrator 21 shall continue to evaluate the costs and benefits of 22 demand-side response measures and may, in consultation 23 with the commission, adopt additional incremental peak 24 load reduction standards. 25 (f) Measurements and verification.--The commission shall 26 establish standards by which the program administrator submits 27 to the commission an annual report, which includes that 28 information relating to the actions and results of the energy 29 efficiency and demand-side response programs undertaken within 30 each electric distribution service territory by each third-party 20080H2200B4429 - 12 -
1 entity. 2 (1) The report shall include, but not be limited to: 3 (i) Documentation of program expenditures. 4 (ii) Measurement and verification of savings 5 resulting from programs. 6 (iii) Evaluation of the cost-effectiveness of 7 expenditures. 8 (iv) Any other information the commission may 9 require pursuant to its rulemaking authority. 10 (2) The program administrator, upon consultation with 11 the commission, shall direct a third-party entity to modify 12 or terminate a particular energy efficiency or a demand-side 13 response program if, after an adequate period for 14 implementation of the program, the commission determines the 15 program is not sufficiently meeting its goals and purposes. 16 (3) In the event an energy efficiency or demand-side 17 response program is terminated, the program administrator 18 shall require the third-party entity to submit a revised 19 program describing the actions to be undertaken to either 20 offer a substitute program or increase the availability of 21 existing programs to make up for the effect of the terminated 22 program on its overall program goals. 23 (g) Responsibilities of electric distribution companies.-- 24 Each electric distribution company that does not seek to be a 25 third-party entity shall: 26 (1) Cooperate with the program administrator as needed 27 in its efforts to competitively procure the services of a 28 third-party entity to provide an energy efficiency and 29 demand-side response program within the service territory of 30 the electric distribution company. 20080H2200B4429 - 13 -
1 (2) Provide information necessary to effectively 2 facilitate the work of the selected third-party entity in 3 conducting the energy efficiency and demand-side response 4 program. 5 (3) Provide assistance as may be requested by the 6 program administrator in reviewing proposals from third-party 7 entities seeking to provide energy efficiency and demand-side 8 response programs within their service territories. 9 (4) Provide assistance as may be requested by the 10 program administrator to facilitate the successful execution 11 of the contract agreement with the third-party entities to 12 provide an energy efficiency and demand-side response program 13 within their service territories. 14 (h) Recovery of administrative and program costs.--An 15 electric distribution company may fully recover all 16 administrative costs, including, but not limited to, costs 17 incurred under subsections (a)(3) and (g)(1), (2), (3) and (4), 18 that the commission determines are prudently incurred and 19 reasonable in amount pursuant to implementing a program to 20 deliver cost-effective energy efficiency and demand-side 21 response activities through a third-party entity. Program and 22 administrative costs shall be recovered on a full and current 23 basis by the electric distribution company from customers 24 through a reconcilable automatic adjustment clause pursuant to 25 section 1307. Energy efficiency and demand-side resource 26 programs shall be deemed to be a new service offered for the 27 first time under section 2804(4)(vi) (relating to standards for 28 restructuring of electric industry). 29 (i) Reporting.--The commission shall submit an annual report 30 to the General Assembly describing the results of the programs 20080H2200B4429 - 14 -
1 implemented by each of the electric distribution companies, 2 including, but not limited to: 3 (1) The costs, benefits and reductions in energy costs. 4 (2) Energy use by customer class within this 5 Commonwealth. 6 (3) Reductions in overall peak demand and projections 7 toward complying with the overall target reduction goals of 8 this section. 9 (j) Definitions.--For purposes of this section, the term 10 "electric distribution company" shall mean a public utility 11 providing facilities for the jurisdictional transmission and 12 distribution of electricity to 100,000 or more retail customers 13 in this Commonwealth. 14 Section 4. Section 2807(e) of Title 66 is amended by adding 15 a paragraph to read: 16 § 2807. Duties of electric distribution companies. 17 * * * 18 (e) Obligation to serve.--* * * 19 (6) (i) Within nine months after the effective date of 20 this paragraph, electric distribution companies shall 21 file a smart meter technology procurement and 22 installation plan with the commission for approval and 23 make the plan available for public comment for a minimum 24 of 30 days. The plan shall describe the smart meter 25 technologies the electric distribution company proposes 26 to install, how the smart meter technology meets the 27 requirements of this paragraph and how the smart meter 28 technology shall be installed according to this 29 paragraph. In addition, the plan shall ensure that all 30 smart meter technology installation and maintenance work 20080H2200B4429 - 15 -
1 shall be performed by adequately trained and qualified 2 personnel and that, to the extent practical, such work 3 shall be offered initially to employees of the electric 4 distribution company. 5 (ii) Electric distribution companies shall furnish 6 smart meter technology to: 7 (A) Customers responsible for 40% of the 8 distribution company's annual peak demand within four 9 years after the effective date of this paragraph. 10 (B) Customers responsible for 75% of the 11 distribution company's annual peak demand within six 12 years after the effective date of this paragraph. 13 (C) One hundred percent of its customers within 14 ten years after the effective date of this paragraph. 15 Electric distribution companies shall, with customer 16 consent, make available electronic access to customer 17 meter data to third parties, including electric 18 generation suppliers and providers of conservation and 19 load management services. 20 (iii) Electric distribution companies shall be 21 permitted to recover all reasonable and prudent costs, as 22 determined by the commission, of providing smart meter 23 technology, including annual deprecation and capital 24 costs over the life of the smart meter technology, that 25 are incurred after the effective date of this paragraph, 26 less all operating and capital costs savings realized by 27 the electric distribution company from the introduction 28 and use of the smart meter technology. An electric 29 distribution company may, at its option, recover such 30 smart meter technology costs: 20080H2200B4429 - 16 -
1 (A) through base rates, including a deferral for 2 future base rate recovery of current costs, with 3 carrying charges equal to 6%; or 4 (B) on a full and current basis through a 5 reconcilable automatic adjustment clause under 6 section 1307 (relating to sliding scale of rates; 7 adjustments). 8 In no event shall lost or decreased revenues by an 9 electric distribution company due to reduced electricity 10 consumption or shifting energy demand be considered a 11 cost of smart meter technology. Smart meter technology 12 shall be deemed to be a new service offered for the first 13 time under section 2804(4)(vi) (relating to standards for 14 restructuring of electric industry). 15 (iv) By January 1, 2010, or at the end of the 16 applicable generation rate cap period, whichever is 17 later, a default service provider shall submit to the 18 commission one or more proposed time-of-use rates and a 19 real-time price plan. The commission shall approve or 20 modify the time-of-use rates and real-time price plan 21 within six months of submittal. The default service 22 provider shall offer commission-approved time-of-use 23 rates and a real-time price plan to all residential and 24 commercial customers that have been provided with smart 25 meter technology within 60 days of installation of the 26 smart meter technology or commission approval of the 27 time-of-use rates and a real-time price plan, whichever 28 is later. Customer participation in time-of-use rates or 29 real-time pricing shall be voluntary and shall only be 30 provided with the affirmative consent of the customer. 20080H2200B4429 - 17 -
1 The default service provider shall submit an annual 2 report to the commission on the participation in the 3 time-of-use and real-time price programs and the efficacy 4 of the programs in affecting energy demand and 5 consumption and the effect on wholesale market prices. 6 (v) For purposes of this paragraph, the term 7 "electric distribution company" shall mean a public 8 utility providing facilities for the jurisdictional 9 transmission and distribution of electricity to 100,000 10 or more retail customers in this Commonwealth. 11 Section 5. This act shall take effect immediately. 12 SECTION 1. SECTION 2803 OF TITLE 66 OF THE PENNSYLVANIA <-- 13 CONSOLIDATED STATUTES IS AMENDED BY ADDING DEFINITIONS TO READ: 14 § 2803. DEFINITIONS. 15 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER 16 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 17 CONTEXT CLEARLY INDICATES OTHERWISE: 18 * * * 19 "BILATERAL CONTRACT." AN AGREEMENT, AS APPROVED BY THE 20 PENNSYLVANIA PUBLIC UTILITY COMMISSION, REACHED BY TWO PARTIES, 21 EACH ACTING IN ITS OWN INDEPENDENT SELF-INTEREST, AS A RESULT OF 22 NEGOTIATIONS FREE OF UNDUE INFLUENCE, DURESS OR FAVORITISM, IN 23 WHICH THE ELECTRIC ENERGY SUPPLIER AGREES TO SELL AND THE 24 ELECTRIC DISTRIBUTION COMPANY AGREES TO BUY A QUANTITY OF 25 ELECTRIC ENERGY AT A SPECIFIED PRICE FOR A SPECIFIED PERIOD OF 26 TIME UNDER TERMS AGREED TO BY BOTH PARTIES, AND WHICH FOLLOWS A 27 STANDARD INDUSTRY TEMPLATE WIDELY ACCEPTED IN THE INDUSTRY OR 28 VARIATIONS THERETO ACCEPTED BY THE PARTIES. STANDARD INDUSTRY 29 TEMPLATES MAY INCLUDE THE EEI MASTER AGREEMENT FOR PHYSICAL 30 ENERGY PURCHASES AND SALES AND THE ISDA MASTER AGREEMENT FOR 20080H2200B4429 - 18 -
1 FINANCIAL ENERGY PURCHASES AND SALES. 2 * * * 3 "DEFAULT SERVICE PROVIDER." AN ELECTRIC DISTRIBUTION COMPANY 4 WITHIN ITS CERTIFIED SERVICE TERRITORY OR AN ALTERNATIVE 5 SUPPLIER APPROVED BY THE PENNSYLVANIA PUBLIC UTILITY COMMISSION 6 THAT PROVIDES GENERATION SERVICE TO RETAIL ELECTRIC CUSTOMERS 7 WHO: 8 (1) CONTRACT FOR ELECTRIC POWER, INCLUDING ENERGY AND 9 CAPACITY, AND THE CHOSEN ELECTRIC GENERATION SUPPLIER DOES 10 NOT SUPPLY THE SERVICE; OR 11 (2) DO NOT CHOOSE AN ALTERNATIVE ELECTRIC GENERATION 12 SUPPLIER. 13 SECTION 2. TITLE 66 IS AMENDED BY ADDING A SECTION TO READ: 14 § 2806.1. ENERGY EFFICIENCY AND CONSERVATION. 15 (A) PROGRAM.--THE COMMISSION SHALL ADOPT A PROGRAM TO 16 REQUIRE ELECTRIC DISTRIBUTION COMPANIES TO ADOPT AND IMPLEMENT 17 COST-EFFECTIVE ENERGY EFFICIENCY AND CONSERVATION PLANS TO 18 REDUCE ENERGY DEMAND AND CONSUMPTION WITHIN THE SERVICE 19 TERRITORIES OF ALL ELECTRIC DISTRIBUTION COMPANIES IN THIS 20 COMMONWEALTH. THE PROGRAM SHALL INCLUDE: 21 (1) PROCEDURES FOR THE APPROVAL OF PLANS SUBMITTED UNDER 22 SUBSECTION (B). 23 (2) A PLAN EVALUATION PROCESS INCLUDING A PROCESS TO 24 MONITOR AND VERIFY DATA COLLECTION, QUALITY ASSURANCE AND 25 RESULTS SUBMITTED. 26 (3) AN ANALYSIS OF THE COST AND BENEFIT OF EACH PLAN 27 SUBMITTED UNDER SUBSECTION (B) IN ACCORDANCE WITH A TOTAL 28 RESOURCE COST TEST. 29 (4) AN ANALYSIS OF HOW THE PROGRAM AND INDIVIDUAL PLANS 30 WILL ENABLE EACH ELECTRIC DISTRIBUTION COMPANY TO ACHIEVE THE 20080H2200B4429 - 19 -
1 REQUIREMENTS FOR REDUCTION IN CONSUMPTION UNDER SUBSECTIONS 2 (C) AND (D). 3 (5) STANDARDS TO ENSURE THAT EACH PLAN INCLUDES A 4 VARIETY OF ENERGY EFFICIENCY AND CONSERVATION MEASURES AND 5 WILL PROVIDE THE MEASURES EQUITABLY TO ALL CLASSES OF 6 CUSTOMERS. 7 (6) PROCEDURES TO REVIEW ALL PROPOSED CONTRACTS PRIOR TO 8 THE EXECUTION OF THE CONTRACT WITH THIRD-PARTY ENTITIES TO 9 IMPLEMENT THE PLAN. THE COMMISSION MAY ORDER THE MODIFICATION 10 OF A PROPOSED CONTRACT TO ENSURE THAT THE PLAN IS ADEQUATE. 11 (7) PROCEDURES TO ENSURE COMPLIANCE WITH REQUIREMENTS 12 FOR REDUCTION IN CONSUMPTION UNDER SUBSECTIONS (C) AND (D). 13 (8) A REQUIREMENT FOR THE PARTICIPATION OF THIRD-PARTY 14 ENTITIES IN THE IMPLEMENTATION OF ALL OR PART OF A PLAN. 15 (9) A PROCESS TO LINK REDUCTIONS IN CONSUMPTION TO THE 16 COMPENSATION OF THIRD-PARTY ENTITIES. 17 (10) PROCEDURES FOR THE LEVY OF ASSESSMENTS IN 18 ACCORDANCE WITH SECTIONS 510 (RELATING TO ASSESSMENT FOR 19 REGULATORY EXPENSES UPON PUBLIC UTILITIES) AND 1308 (RELATING 20 TO VOLUNTARY CHANGES IN RATES) SUBJECT TO THE LIMITATIONS OF 21 SUBSECTION (G) TO FUND PLANS FILED UNDER SUBSECTION (B) 22 SUBJECT TO THE LIMITATIONS SET FORTH UNDER SUBSECTION (G). 23 (B) DUTIES OF ELECTRIC DISTRIBUTION COMPANIES.-- 24 (1) (I) BY NOVEMBER 15, 2008, EACH ELECTRIC 25 DISTRIBUTION COMPANY SHALL DEVELOP AND FILE AN ENERGY 26 EFFICIENCY AND CONSERVATION PLAN WITH THE COMMISSION FOR 27 APPROVAL TO MEET THE REQUIREMENTS OF SUBSECTION (A) AND 28 THE REQUIREMENTS FOR REDUCTION IN CONSUMPTION UNDER 29 SUBSECTIONS (C) AND (D). THE PLAN SHALL BE IMPLEMENTED 30 UPON APPROVAL BY THE COMMISSION AND SHALL COMPLY WITH ALL 20080H2200B4429 - 20 -
1 OF THE FOLLOWING: 2 (A) INCLUDE SPECIFIC PROPOSALS TO IMPLEMENT 3 ENERGY EFFICIENCY AND CONSERVATION MEASURES TO 4 ACHIEVE THE REQUIRED REDUCTIONS IN CONSUMPTION UNDER 5 SUBSECTIONS (C) AND (D). 6 (B) A MINIMUM OF 10% OF THE REQUIRED REDUCTIONS 7 IN CONSUMPTION UNDER SUBSECTIONS (C) AND (D) SHALL BE 8 OBTAINED FROM UNITS OF FEDERAL, STATE AND LOCAL 9 GOVERNMENT, INCLUDING MUNICIPALITIES, SCHOOL 10 DISTRICTS, INSTITUTIONS OF HIGHER EDUCATION AND 11 NONPROFIT ENTITIES. 12 (C) THE MANNER IN WHICH PERFORMANCE WILL BE 13 MEASURED, VERIFIED AND EVALUATED. 14 (D) THE MANNER IN WHICH THE PLAN WILL ACHIEVE 15 THE REQUIREMENTS OF THE PROGRAM UNDER SUBSECTION (A) 16 AND THE REQUIRED REDUCTIONS IN CONSUMPTION UNDER 17 SUBSECTIONS (C) AND (D). 18 (E) INCLUDE A CONTRACT WITH ONE OR MORE THIRD- 19 PARTY ENTITIES TO IMPLEMENT THE PLAN OR A PORTION OF 20 THE PLAN AS APPROVED BY THE COMMISSION. 21 (F) INCLUDE ESTIMATES OF THE COST OF 22 IMPLEMENTATION OF THE ENERGY EFFICIENCY AND 23 CONSERVATION MEASURES IN THE PLAN. 24 (G) INCLUDE SPECIFIC ENERGY EFFICIENCY MEASURES 25 FOR HOUSEHOLDS AT OR BELOW 150% OF THE FEDERAL 26 POVERTY INCOME GUIDELINES. THE NUMBER OF MEASURES 27 SHALL BE PROPORTIONATE TO THOSE HOUSEHOLDS' SHARE OF 28 THE TOTAL ENERGY USAGE IN THIS COMMONWEALTH. THE 29 ELECTRIC DISTRIBUTION COMPANY SHALL COORDINATE 30 MEASURES UNDER THIS CLAUSE WITH OTHER PROGRAMS 20080H2200B4429 - 21 -
1 ADMINISTERED BY THE COMMISSION OR ANOTHER FEDERAL OR 2 STATE AGENCY. THE EXPENDITURES OF AN ELECTRIC 3 DISTRIBUTION COMPANY UNDER THIS CLAUSE SHALL BE IN 4 ADDITION TO EXPENDITURES MADE UNDER 52 PA. CODE CH. 5 58 (RELATING TO RESIDENTIAL LOW INCOME USAGE 6 REDUCTION PROGRAMS). 7 (H) INCLUDE A PROPOSED COST-RECOVERY TARIFF 8 MECHANISM TO FUND THE ENERGY EFFICIENCY AND 9 CONSERVATION MEASURES AND TO ENSURE RECOVERY OF THE 10 PRUDENT AND REASONABLE COSTS OF THE PLAN AS APPROVED 11 BY THE COMMISSION. 12 (I) A DEMONSTRATION THAT THE PLAN IS COST- 13 EFFECTIVE USING A TOTAL RESOURCE COST TEST OR OTHER 14 COST-BENEFIT ANALYSIS APPROVED BY THE COMMISSION AND 15 PROVIDES A DIVERSE CROSS SECTION OF ALTERNATIVES FOR 16 CUSTOMERS OF ALL RATE CLASSES. 17 (J) REQUIRE AN ANNUAL INDEPENDENT EVALUATION OF 18 THE PERFORMANCE OF THE COST-EFFECTIVENESS OF THE PLAN 19 AND A FULL REVIEW OF THE FIVE-YEAR RESULTS OF THE 20 PLAN AND, TO THE EXTENT PRACTICABLE, HOW THE PLAN 21 WILL BE ADJUSTED ON A GOING-FORWARD BASIS AS A RESULT 22 OF THE EVALUATION. 23 (II) A NEW PLAN SHALL BE FILED WITH THE COMMISSION 24 EVERY FIVE YEARS OR AS OTHERWISE REQUIRED BY THE 25 COMMISSION. THE PLAN SHALL SET FORTH THE MANNER IN WHICH 26 THE COMPANY WILL MEET THE REQUIRED REDUCTIONS IN 27 CONSUMPTION UNDER SUBSECTIONS (C) AND (D). 28 (III) NO MORE THAN 2% OF FUNDS AVAILABLE TO 29 IMPLEMENT A PLAN UNDER THIS SUBSECTION SHALL BE ALLOCATED 30 FOR EXPERIMENTAL EQUIPMENT OR DEVICES. 20080H2200B4429 - 22 -
1 (2) THE COMMISSION SHALL DIRECT AN ELECTRIC DISTRIBUTION 2 COMPANY TO MODIFY OR TERMINATE ANY PART OF A PLAN APPROVED 3 UNDER THIS SECTION IF, AFTER AN ADEQUATE PERIOD FOR 4 IMPLEMENTATION, THE COMMISSION DETERMINES THAT AN ENERGY 5 EFFICIENCY OR CONSERVATION MEASURE INCLUDED IN THE PLAN IS 6 NOT EFFECTIVE. 7 (3) IF PART OF A PLAN IS MODIFIED OR TERMINATED UNDER 8 PARAGRAPH (2), THE ELECTRIC DISTRIBUTION COMPANY SHALL SUBMIT 9 A REVISED PLAN DESCRIBING ACTIONS TO BE TAKEN TO OFFER 10 SUBSTITUTE MEASURES OR TO INCREASE THE AVAILABILITY OF 11 EXISTING MEASURES IN THE PLAN TO ACHIEVE THE REQUIRED 12 REDUCTIONS IN CONSUMPTION UNDER SUBSECTIONS (C) AND (D). 13 (C) REDUCTIONS IN CONSUMPTION.--EACH ELECTRIC DISTRIBUTION 14 COMPANY SHALL REDUCE CONSUMPTION AS FOLLOWS: 15 (1) BY MAY 31, 2011, EACH ELECTRIC DISTRIBUTION COMPANY 16 SHALL REDUCE ITS TOTAL ANNUAL WEATHER-NORMALIZED DELIVERIES 17 TO RETAIL CUSTOMERS BY A MINIMUM OF 1%. THE 1% LOAD REDUCTION 18 IN CONSUMPTION SHALL BE MEASURED AGAINST THE ELECTRIC 19 DISTRIBUTION COMPANY'S EXPECTED LOAD AS FORECASTED BY THE 20 COMMISSION FOR JUNE 1, 2007 THROUGH MAY 31, 2008, WITH 21 PROVISIONS MADE FOR WEATHER ADJUSTMENTS AND EXTRAORDINARY 22 LOADS THAT THE ELECTRIC DISTRIBUTION COMPANY MUST SERVE. 23 (2) BY MAY 31, 2013, EACH ELECTRIC DISTRIBUTION COMPANY 24 SHALL REDUCE ITS TOTAL ANNUAL WEATHER-NORMALIZED DELIVERIES 25 TO RETAIL CUSTOMERS BY A MINIMUM OF 2.5%. THE 2.5% LOAD 26 REDUCTION IN CONSUMPTION SHALL BE MEASURED AGAINST THE 27 ELECTRIC DISTRIBUTION COMPANY'S EXPECTED LOAD AS FORECASTED 28 BY THE COMMISSION FOR JUNE 1, 2007, THROUGH MAY 31, 2008, 29 WITH PROVISION MADE FOR WEATHER ADJUSTMENTS AND EXTRAORDINARY 30 LOADS THAT THE ELECTRIC DISTRIBUTION COMPANY MUST SERVE. 20080H2200B4429 - 23 -
1 (3) BY NOVEMBER 30, 2013, THE COMMISSION SHALL EVALUATE 2 THE COSTS AND BENEFITS OF THE PROGRAM ESTABLISHED UNDER 3 SUBSECTION (A) AND ENERGY EFFICIENCY AND CONSERVATION PLANS 4 SUBMITTED TO THE PROGRAM. THE EVALUATION SHALL BE CONSISTENT 5 WITH A TOTAL RESOURCE COST TEST OR A COST VERSUS BENEFIT 6 MEASUREMENT DETERMINED BY THE COMMISSION. IF THE COMMISSION 7 DETERMINES THAT THE BENEFITS OF THE PROGRAM EXCEED THE COSTS, 8 THE COMMISSION SHALL ADOPT ADDITIONAL INCREMENTAL REQUIRED 9 REDUCTIONS IN CONSUMPTION FOR THE PERIOD ENDING MAY 31, 2018. 10 (4) AFTER MAY 31, 2018, THE COMMISSION SHALL CONTINUE TO 11 EVALUATE THE COSTS AND BENEFITS OF THE PROGRAM ESTABLISHED 12 UNDER SUBSECTION (A) AND ENERGY EFFICIENCY AND CONSERVATION 13 PLANS APPROVED UNDER SUBSECTION (A). IF THE COMMISSION 14 DETERMINES THAT THE BENEFITS OF THE PROGRAM EXCEED THE COSTS, 15 THE COMMISSION MAY REQUIRE AND APPROVE ADDITIONAL PLANS TO 16 ACHIEVE INCREMENTAL REQUIREMENTS FOR REDUCTION IN CONSUMPTION 17 FOR ELECTRIC DISTRIBUTION COMPANIES. EACH PLAN SHALL BE FOR A 18 TERM NOT TO EXCEED FIVE YEARS. 19 (D) PEAK DEMAND.--EACH ELECTRIC DISTRIBUTION COMPANY SHALL 20 IMPLEMENT ENERGY EFFICIENCY AND CONSERVATION MEASURES TO ACHIEVE 21 THE FOLLOWING REDUCTIONS IN CONSUMPTION: 22 (1) BY MAY 31, 2013, EACH ENERGY DISTRIBUTION COMPANY 23 SHALL REDUCE ITS WEATHER-NORMALIZED DELIVERIES TO RETAIL 24 CUSTOMERS BY A MINIMUM OF 4% IN THE 100 HOURS OF HIGHEST 25 DEMAND. THE REDUCTION SHALL BE MEASURED AGAINST THE ELECTRIC 26 DISTRIBUTION COMPANY'S PEAK DEMAND IN THE 100 HOURS OF 27 GREATEST DEMAND FOR JUNE 1, 2007, THROUGH MAY 31, 2008. 28 (2) BY NOVEMBER 30, 2013, THE COMMISSION SHALL COMPARE 29 THE TOTAL COSTS OF ENERGY EFFICIENCY AND CONSERVATION PLANS 30 IMPLEMENTED UNDER THIS SECTION TO THE TOTAL SAVINGS IN ENERGY 20080H2200B4429 - 24 -
1 AND CAPACITY COSTS TO RETAIL CUSTOMERS IN THIS COMMONWEALTH. 2 IF THE COMMISSION DETERMINES THAT THE BENEFITS OF THE 3 MEASURES EXCEED THE COSTS, THE COMMISSION SHALL SET 4 ADDITIONAL INCREMENTAL REQUIREMENTS FOR REDUCTION IN PEAK 5 DEMAND FOR THE 100 HOURS OF GREATEST DEMAND OR AN ALTERNATIVE 6 REDUCTION APPROVED BY THE COMMISSION. REDUCTIONS IN 7 CONSUMPTION SHALL BE MEASURED FROM THE ELECTRIC DISTRIBUTION 8 COMPANY'S PEAK DEMAND FOR THE PERIOD FROM JUNE 1, 2011, 9 THROUGH MAY 31, 2012. THE REDUCTIONS IN CONSUMPTION REQUIRED 10 BY THE COMMISSION SHALL BE ACCOMPLISHED NO LATER THAN MAY 31, 11 2017. 12 (E) COMMISSION APPROVAL.--THE COMMISSION SHALL APPROVE OR 13 DISAPPROVE A PLAN FILED UNDER SUBSECTION (B) WITHIN 120 DAYS OF 14 SUBMISSION. THE FOLLOWING SHALL APPLY TO AN ORDER DISAPPROVING A 15 PLAN: 16 (1) THE COMMISSION SHALL DESCRIBE IN DETAIL THE REASONS 17 FOR THE DISAPPROVAL. 18 (2) THE ELECTRIC DISTRIBUTION COMPANY SHALL HAVE 60 DAYS 19 TO FILE A REVISED PLAN TO ADDRESS THE DEFICIENCIES IDENTIFIED 20 BY THE COMMISSION. 21 (F) PENALTIES.-- 22 (1) THE FOLLOWING SHALL APPLY FOR FAILURE TO SUBMIT A 23 PLAN: 24 (I) AN ELECTRIC DISTRIBUTION COMPANY THAT FAILS TO 25 FILE A PLAN UNDER SUBSECTION (B) SHALL BE SUBJECT TO A 26 CIVIL PENALTY OF $100,000 PER DAY UNTIL THE PLAN IS 27 FILED. 28 (II) AN ELECTRIC DISTRIBUTION COMPANY THAT FAILS TO 29 FILE A REVISED PLAN UNDER SUBSECTION (E)(2) SHALL BE 30 SUBJECT TO A CIVIL PENALTY OF $100,000 PER DAY UNTIL THE 20080H2200B4429 - 25 -
1 PLAN IS FILED. 2 (III) PENALTIES COLLECTED UNDER THIS PARAGRAPH SHALL 3 BE DEPOSITED IN THE LOW-INCOME ELECTRIC CUSTOMER 4 ASSISTANCE PROGRAM OF THE ENERGY DISTRIBUTION COMPANY FOR 5 THE RESPECTIVE SERVICE TERRITORY. 6 (2) THE FOLLOWING SHALL APPLY TO AN ELECTRIC 7 DISTRIBUTION COMPANY THAT FAILS TO ACHIEVE THE REDUCTIONS IN 8 CONSUMPTION REQUIRED UNDER SUBSECTION (C) OR (D): 9 (I) THE ELECTRIC DISTRIBUTION COMPANY SHALL BE 10 SUBJECT TO A CIVIL PENALTY OF UP TO $5,000,000 FOR 11 FAILURE TO ACHIEVE THE REQUIRED REDUCTIONS IN CONSUMPTION 12 UNDER SUBSECTION (C) OR (D). ANY PENALTY PAID BY AN 13 ELECTRIC DISTRIBUTION COMPANY UNDER THIS SUBPARAGRAPH 14 SHALL NOT BE RECOVERABLE FROM RATEPAYERS. 15 (II) IF AN ELECTRIC DISTRIBUTION COMPANY FAILS TO 16 ACHIEVE THE REQUIRED REDUCTIONS IN CONSUMPTION UNDER 17 SUBSECTION (C) OR (D) BY 2013, RESPONSIBILITY TO ACHIEVE 18 THE REDUCTIONS IN CONSUMPTION SHALL BE TRANSFERRED TO THE 19 COMMISSION. THE COMMISSION SHALL DO ALL OF THE FOLLOWING: 20 (A) IMPLEMENT A PLAN TO ACHIEVE THE REQUIRED 21 REDUCTIONS IN CONSUMPTION UNDER SUBSECTION (C) OR 22 (D). 23 (B) CONTRACT WITH THIRD-PARTY ENTITIES AS 24 NECESSARY TO IMPLEMENT ANY PORTION OF THE PLAN. 25 (III) THE PROVISIONS OF SUBPARAGRAPH (II) SHALL 26 APPLY IN EACH SUBSEQUENT FIVE-YEAR PERIOD IF THE ELECTRIC 27 DISTRIBUTION COMPANY FAILS TO ACHIEVE THE REDUCTION 28 STANDARDS UNDER SUBSECTION (C) OR (D). 29 (G) LIMITATION ON COSTS.--THE TOTAL COST OF ANY PLAN 30 REQUIRED UNDER THIS SECTION SHALL NOT EXCEED 2% OF THE ELECTRIC 20080H2200B4429 - 26 -
1 DISTRIBUTION COMPANY'S TOTAL ANNUAL REVENUE AS OF DECEMBER 31, 2 2006. NO MORE THAN 1% OF THE 2% OF THE COMPANY'S TOTAL ANNUAL 3 REVENUE MAY BE USED FOR THE ADMINISTRATIVE COSTS OF THE ELECTRIC 4 DISTRIBUTION COMPANY. THE LIMITATION UNDER THIS PARAGRAPH SHALL 5 NOT INCLUDE THE COST OF LOW-INCOME USAGE REDUCTION PROGRAMS 6 ESTABLISHED UNDER 52 PA. CODE CH. 58 (RELATING TO RESIDENTIAL 7 LOW INCOME USAGE REDUCTION PROGRAMS). 8 (H) REPORT.--THE FOLLOWING SHALL APPLY: 9 (1) EACH ELECTRIC DISTRIBUTION COMPANY SHALL SUBMIT AN 10 ANNUAL REPORT TO THE COMMISSION RELATING TO THE RESULTS OF 11 THE ENERGY EFFICIENCY AND CONSERVATION PLAN WITHIN THE 12 ELECTRIC DISTRIBUTION SERVICE TERRITORY. THE REPORT SHALL 13 INCLUDE ALL OF THE FOLLOWING: 14 (I) DOCUMENTATION OF PROGRAM EXPENDITURES. 15 (II) MEASUREMENT AND VERIFICATION OF ENERGY SAVINGS 16 UNDER THE PLAN. 17 (III) EVALUATION OF THE COST-EFFECTIVENESS OF 18 EXPENDITURES. 19 (IV) ANY OTHER INFORMATION REQUIRED BY THE 20 COMMISSION. 21 (2) BEGINNING FIVE YEARS FOLLOWING THE EFFECTIVE DATE OF 22 THIS SECTION AND ANNUALLY THEREAFTER, THE COMMISSION SHALL 23 SUBMIT A REPORT TO THE CONSUMER PROTECTION AND PROFESSIONAL 24 LICENSURE COMMITTEE OF THE SENATE AND THE CONSUMER AFFAIRS 25 COMMITTEE OF THE HOUSE OF REPRESENTATIVES. 26 (I) EXISTING FUNDING SOURCES.--EACH ELECTRIC DISTRIBUTION 27 COMPANY SHALL PROVIDE A LIST OF ALL ELIGIBLE FEDERAL AND STATE 28 FUNDING PROGRAMS. 29 (J) RECOVERY.--IN NO CASE SHALL DECREASED REVENUES OF AN 30 ELECTRIC DISTRIBUTION COMPANY DUE TO REDUCED ENERGY CONSUMPTION 20080H2200B4429 - 27 -
1 OR CHANGES IN ENERGY DEMAND BE CONSIDERED A RECOVERABLE COST. 2 (K) APPLICABILITY.--THIS SECTION SHALL NOT APPLY TO AN 3 ELECTRIC DISTRIBUTION COMPANY WITH FEWER THAN 100,000 CUSTOMERS. 4 (L) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING 5 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS 6 SUBSECTION: 7 "ELECTRIC DISTRIBUTION COMPANY TOTAL ANNUAL REVENUE." 8 AMOUNTS PAID TO THE ELECTRIC DISTRIBUTION COMPANY FOR 9 GENERATION, TRANSMISSION, DISTRIBUTION AND SURCHARGES BY RETAIL 10 CUSTOMERS. 11 "ENERGY EFFICIENCY AND CONSERVATION MEASURES." 12 (1) TECHNOLOGIES, MANAGEMENT PRACTICES OR OTHER MEASURES 13 EMPLOYED BY RETAIL CUSTOMERS THAT REDUCE ELECTRICITY 14 CONSUMPTION OR DEMAND IF ALL OF THE FOLLOWING APPLY: 15 (I) THE TECHNOLOGY, PRACTICE OR OTHER MEASURE IS 16 INSTALLED ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION 17 AT THE LOCATION OF A RETAIL CUSTOMER. 18 (II) THE TECHNOLOGY, PRACTICE OR OTHER MEASURE 19 REDUCES CONSUMPTION OF ENERGY BY THE RETAIL CUSTOMER. 20 (III) THE COST OF THE ACQUISITION OR INSTALLATION OF 21 THE MEASURE IS DIRECTLY INCURRED IN WHOLE OR IN PART BY 22 THE ELECTRIC DISTRIBUTION COMPANY. 23 (2) ENERGY EFFICIENCY AND CONSERVATION MEASURES SHALL 24 INCLUDE SOLAR OR SOLAR PHOTOVOLTAIC PANELS, ENERGY EFFICIENT 25 WINDOWS AND DOORS, ENERGY EFFICIENT LIGHTING, INCLUDING EXIT 26 SIGN RETROFIT, HIGH BAY FLUORESCENT RETROFIT AND PEDESTRIAN 27 AND TRAFFIC SIGNAL CONVERSION, GEOTHERMAL HEATING, 28 INSULATION, AIR SEALING, REFLECTIVE ROOF COATINGS, ENERGY 29 EFFICIENT HEATING AND COOLING EQUIPMENT OR SYSTEMS AND ENERGY 30 EFFICIENT APPLIANCES AND OTHER TECHNOLOGIES, PRACTICES OR 20080H2200B4429 - 28 -
1 MEASURES APPROVED BY THE COMMISSION. 2 "PEAK DEMAND." THE HIGHEST ELECTRICAL REQUIREMENT OCCURRING 3 DURING A SPECIFIED PERIOD. FOR AN ELECTRIC DISTRIBUTION COMPANY, 4 THE TERM SHALL MEAN THE SUM OF THE METERED CONSUMPTION FOR ALL 5 RETAIL CUSTOMERS OVER THAT PERIOD. 6 "QUALITY ASSURANCE." ALL OF THE FOLLOWING: 7 (1) THE AUDITING OF BUILDINGS, EQUIPMENT AND PROCESSES 8 TO DETERMINE THE COST-EFFECTIVENESS OF ENERGY EFFICIENCY AND 9 CONSERVATION MEASURES USING NATIONALLY RECOGNIZED TOOLS AND 10 CERTIFICATION PROGRAMS. 11 (2) INDEPENDENT INSPECTION OF COMPLETED ENERGY 12 EFFICIENCY AND CONSERVATION MEASURES COMPLETED BY THIRD-PARTY 13 ENTITIES TO EVALUATE THE QUALITY OF THE COMPLETED MEASURE. 14 "REAL-TIME PRICE." A RATE THAT DIRECTLY REFLECTS THE 15 DIFFERENT COST OF ENERGY DURING EACH HOUR. 16 "THIRD-PARTY ENTITY." AN ENTITY WITH NO DIRECT OR INDIRECT 17 OWNERSHIP, PARTNERSHIP OR OTHER AFFILIATED INTEREST WITH AN 18 ELECTRIC DISTRIBUTION COMPANY. 19 "TIME-OF-USE RATE." A RATE THAT REFLECTS THE COSTS OF 20 SERVING CUSTOMERS DURING DIFFERENT TIME PERIODS, INCLUDING OFF- 21 PEAK AND ON-PEAK PERIODS, BUT NOT AS FREQUENTLY AS EACH HOUR. 22 "TOTAL RESOURCE COST TEST." A STANDARD TEST THAT IS MET IF, 23 OVER THE EFFECTIVE LIFE OF EACH PLAN NOT TO EXCEED FIVE YEARS, 24 THE AVOIDED MONETARY COSTS OF SUPPLYING ELECTRICITY ARE GREATER 25 THAN THE MONETARY COSTS OF ENERGY EFFICIENCY MEASURES AND 26 CONSERVATION OF CONSUMPTION. 27 SECTION 3. SECTION 2807(E) OF TITLE 66 IS AMENDED AND THE 28 SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ: 29 § 2807. DUTIES OF ELECTRIC DISTRIBUTION COMPANIES. 30 * * * 20080H2200B4429 - 29 -
1 (E) OBLIGATION TO SERVE.--[AN ELECTRIC DISTRIBUTION 2 COMPANY'S] A DEFAULT SERVICE PROVIDER'S OBLIGATION TO PROVIDE 3 ELECTRIC GENERATION SUPPLY SERVICE FOLLOWING [IMPLEMENTATION OF 4 RESTRUCTURING AND THE CHOICE OF ALTERNATIVE GENERATION BY A 5 CUSTOMER] THE EXPIRATION OF A GENERATION RATE CAP SPECIFIED 6 UNDER SECTION 2804(4) (RELATING TO STANDARDS FOR RESTRUCTURING 7 OF ELECTRIC INDUSTRY) OR A RESTRUCTURING PLAN UNDER SECTION 8 2806(F) (RELATING TO IMPLEMENTATION, PILOT PROGRAMS AND 9 PERFORMANCE-BASED RATES) IS REVISED AS FOLLOWS: 10 (1) WHILE AN ELECTRIC DISTRIBUTION COMPANY COLLECTS 11 EITHER A COMPETITIVE TRANSITION CHARGE OR AN INTANGIBLE 12 TRANSITION CHARGE OR UNTIL 100% OF ITS CUSTOMERS HAVE CHOICE, 13 WHICHEVER IS LONGER, THE ELECTRIC DISTRIBUTION COMPANY SHALL 14 CONTINUE TO HAVE THE FULL OBLIGATION TO SERVE, INCLUDING THE 15 CONNECTION OF CUSTOMERS, THE DELIVERY OF ELECTRIC ENERGY AND 16 THE PRODUCTION OR ACQUISITION OF ELECTRIC ENERGY FOR 17 CUSTOMERS. 18 [(2) AT THE END OF THE TRANSITION PERIOD, THE COMMISSION 19 SHALL PROMULGATE REGULATIONS TO DEFINE THE ELECTRIC 20 DISTRIBUTION COMPANY'S OBLIGATION TO CONNECT AND DELIVER AND 21 ACQUIRE ELECTRICITY UNDER PARAGRAPH (3) THAT WILL EXIST AT 22 THE END OF THE PHASE-IN PERIOD. 23 (3) IF A CUSTOMER CONTRACTS FOR ELECTRIC ENERGY AND IT 24 IS NOT DELIVERED OR IF A CUSTOMER DOES NOT CHOOSE AN 25 ALTERNATIVE ELECTRIC GENERATION SUPPLIER, THE ELECTRIC 26 DISTRIBUTION COMPANY OR COMMISSION-APPROVED ALTERNATIVE 27 SUPPLIER SHALL ACQUIRE ELECTRIC ENERGY AT PREVAILING MARKET 28 PRICES TO SERVE THAT CUSTOMER AND SHALL RECOVER FULLY ALL 29 REASONABLE COSTS.] 30 (3.1) (I) FOLLOWING THE EXPIRATION OF AN ELECTRIC 20080H2200B4429 - 30 -
1 DISTRIBUTION COMPANY'S OBLIGATION TO PROVIDE ELECTRIC 2 GENERATION SUPPLY SERVICE TO RETAIL CUSTOMERS AT CAPPED 3 RATES, IF A CUSTOMER CONTRACTS FOR ELECTRIC GENERATION 4 SUPPLY SERVICE AND THE CHOSEN ELECTRIC GENERATION 5 SUPPLIER DOES NOT PROVIDE THE SERVICE OR IF A CUSTOMER 6 DOES NOT CHOOSE AN ALTERNATIVE ELECTRIC GENERATION 7 SUPPLIER, THE DEFAULT SERVICE PROVIDER SHALL PROVIDE 8 ELECTRIC GENERATION SUPPLY SERVICE TO THAT CUSTOMER 9 PURSUANT TO A COMMISSION-APPROVED COMPETITIVE PROCUREMENT 10 PLAN. THE ELECTRIC POWER ACQUIRED SHALL BE PROCURED 11 THROUGH COMPETITIVE PROCUREMENT PROCESSES AND SHALL 12 INCLUDE ONE OR MORE OF THE FOLLOWING: 13 (A) AUCTIONS. 14 (B) REQUESTS FOR PROPOSAL. 15 (C) BILATERAL AGREEMENTS ENTERED INTO AT THE 16 SOLE DISCRETION OF THE DEFAULT SERVICE PROVIDER WHICH 17 SHALL BE AT PRICES WHICH ARE: 18 (I) NO GREATER THAN THE COST OF OBTAINING 19 GENERATION UNDER COMPARABLE TERMS IN THE 20 WHOLESALE MARKET, AS DETERMINED BY THE COMMISSION 21 AT THE TIME OF EXECUTION OF THE CONTRACT; OR 22 (II) CONSISTENT WITH A COMMISSION-APPROVED 23 COMPETITION PROCUREMENT PROCESS. ANY AGREEMENT 24 BETWEEN AFFILIATED PARTIES SHALL BE SUBJECT TO 25 REVIEW AND APPROVAL OF THE PENNSYLVANIA PUBLIC 26 UTILITY COMMISSION UNDER CHAPTER 21 (RELATING TO 27 RELATIONS WITH AFFILIATED INTERESTS). IN NO CASE 28 SHALL THE COST OF OBTAINING GENERATION FROM ANY 29 AFFILIATED INTEREST BE GREATER THAN THE COST OF 30 OBTAINING GENERATION UNDER COMPARABLE TERMS IN 20080H2200B4429 - 31 -
1 THE WHOLESALE MARKET AT THE TIME OF EXECUTION OF 2 THE CONTRACT. 3 (II) THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY TO 4 ANY TYPE OF FUEL PURCHASED BY A DEFAULT SERVICE PROVIDER 5 TO PROVIDE ELECTRIC GENERATION SUPPLY SERVICE, INCLUDING 6 FUEL REQUIRED TO BE PURCHASED UNDER THE ACT OF NOVEMBER 7 30, 2004 (P.L.1672, NO.213), KNOWN AS THE ALTERNATIVE 8 ENERGY PORTFOLIO STANDARDS ACT. 9 (3.2) THE ELECTRIC POWER PROCURED PURSUANT TO PARAGRAPH 10 (3.1) SHALL INCLUDE A PRUDENT MIX OF THE FOLLOWING: 11 (I) SPOT MARKET PURCHASES. 12 (II) SHORT-TERM CONTRACTS. 13 (III) LONG-TERM PURCHASE CONTRACTS, ENTERED INTO AS 14 A RESULT OF AN AUCTION, REQUEST FOR PROPOSAL OR BILATERAL 15 CONTRACT THAT IS FREE OF UNDUE INFLUENCE, DURESS OR 16 FAVORITISM, OF NOT LESS THAN THREE AND NOT MORE THAN 20 17 YEARS, UNLESS THE COMMISSION DETERMINES A LONGER TERM IS 18 NECESSARY FOR THE RELIABILITY IN THE ACQUISITION OF 19 GENERATION AND IT IS IN THE BEST INTEREST OF CONSUMERS TO 20 EXTEND THE TERM OF THE CONTRACT BEYOND 20 YEARS. THE 21 DEFAULT SERVICE PROVIDER SHALL HAVE SOLE DISCRETION TO 22 DETERMINE THE SOURCE, FUEL TYPE AND LENGTH OF CONTRACT. 23 (3.3) THE PRUDENT MIX OF CONTRACTS ENTERED INTO PURSUANT 24 TO PARAGRAPH (3.2) SHALL BE DESIGNED TO ENSURE: 25 (I) ADEQUATE AND RELIABLE SERVICE. 26 (II) THE LEAST COST TO CUSTOMERS OVER TIME. 27 (III) COMPLIANCE WITH THE REQUIREMENTS OF PARAGRAPH 28 (3.1). 29 (3.4) THE DEFAULT SERVICE PROVIDER SHALL FILE A PLAN FOR 30 COMPETITIVE PROCUREMENT WITH THE COMMISSION AND OBTAIN 20080H2200B4429 - 32 -
1 COMMISSION APPROVAL OF THE PLAN CONSIDERING THE STANDARDS IN 2 PARAGRAPHS (3.1), (3.2) AND (3.3) BEFORE THE COMPETITIVE 3 PROCESS IS IMPLEMENTED. THE COMMISSION SHALL HOLD HEARINGS AS 4 NECESSARY ON THE PROPOSED PLAN. IF THE COMMISSION FAILS TO 5 ISSUE A FINAL ORDER ON THE PLAN WITHIN NINE MONTHS OF THE 6 DATE THAT THE PLAN IS FILED, THE PLAN SHALL BE DEEMED TO BE 7 APPROVED AND THE DEFAULT SERVICE PROVIDER MAY IMPLEMENT THE 8 PLAN AS FILED. COSTS INCURRED THROUGH AN APPROVED COMPETITIVE 9 PROCUREMENT PLAN SHALL BE DEEMED TO BE THE LEAST COST OVER 10 TIME AS REQUIRED UNDER PARAGRAPH (3.3). 11 (3.5) AT THE TIME THE COMMISSION EVALUATES THE PLAN AND 12 PRIOR TO APPROVAL, IN DETERMINING IF THE DEFAULT ELECTRIC 13 SERVICE PROVIDER'S PLAN OBTAINS GENERATION SUPPLY AT THE 14 LEAST COST, THE COMMISSION SHALL CONSIDER THE DEFAULT SERVICE 15 PROVIDER'S OBLIGATION TO PROVIDE ADEQUATE AND RELIABLE 16 SERVICE TO THE CUSTOMERS AND THAT THE DEFAULT SERVICE 17 PROVIDER HAS OBTAINED A PRUDENT MIX OF CONTRACTS TO OBTAIN 18 LEAST COST ON LONG-TERM, SHORT-TERM AND SPOT MARKET BASIS AND 19 SHALL MAKE SPECIFIC FINDINGS WHICH SHALL INCLUDE THE 20 FOLLOWING: 21 (I) THE DEFAULT SERVICE PROVIDER'S PLAN INCLUDES 22 PRUDENT STEPS NECESSARY TO NEGOTIATE FAVORABLE GENERATION 23 SUPPLY CONTRACTS. 24 (II) THE DEFAULT SERVICE PROVIDER'S PLAN INCLUDES 25 PRUDENT STEPS NECESSARY TO OBTAIN LEAST COST GENERATION 26 SUPPLY CONTRACTS ON A LONG-TERM, SHORT-TERM AND SPOT 27 MARKET BASIS. 28 (III) NEITHER THE DEFAULT SERVICE PROVIDER NOR ITS 29 AFFILIATED INTEREST HAS WITHHELD OR ASKED TO WITHHOLD 30 FROM THE MARKET ANY GENERATION SUPPLY WHICH SHOULD HAVE 20080H2200B4429 - 33 -
1 BEEN UTILIZED AS PART OF THE LEAST COST PROCUREMENT 2 POLICY. 3 (3.6) NOTWITHSTANDING SECTIONS 508 (RELATING TO POWER OF 4 COMMISSION TO VARY, REFORM AND REVISE CONTRACTS) AND 2102 5 (RELATING TO APPROVAL OF CONTRACTS WITH AFFILIATED 6 INTERESTS), THE COMMISSION SHALL NOT MODIFY CONTRACTS OR 7 DISALLOW COSTS ASSOCIATED WITH AN APPROVED PROCUREMENT 8 PROCESS WHEN IT HAS REVIEWED AND APPROVED THE RESULTS OF THE 9 PROCUREMENT. 10 (3.7) NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE 11 TO THE CONTRARY, THE COMMISSION MAY MODIFY CONTRACTS OR 12 DISALLOW COSTS WHEN THE PARTY SEEKING RECOVERY OF THE COSTS 13 IS AT FAULT ASSOCIATED WITH CONTRACTS ENTERED INTO PURSUANT 14 TO A COMMISSION-APPROVED PROCUREMENT PLAN IF THE COMMISSION 15 DETERMINES AFTER A HEARING THAT: 16 (I) THE CONTRACT HAS NOT BEEN IMPLEMENTED OR 17 APPROVED OR DOES NOT COMPLY WITH THE COMMISSION-APPROVED 18 PROCUREMENT PLAN; OR 19 (II) THERE HAS BEEN FRAUD, COLLUSION OR MARKET 20 MANIPULATION WITH REGARD TO THESE CONTRACTS. 21 (3.8) THE DEFAULT SERVICE PROVIDER SHALL HAVE THE RIGHT 22 TO RECOVER ON A FULL AND CURRENT BASIS, PURSUANT TO A 23 RECONCILABLE AUTOMATIC ADJUSTMENT CLAUSE UNDER SECTION 1307 24 (RELATING TO SLIDING SCALE OF RATES; ADJUSTMENTS), ALL COSTS 25 INCURRED UNDER THIS SECTION AND A COMMISSION-APPROVED 26 COMPETITIVE PROCUREMENT PLAN. 27 (4) IF A CUSTOMER THAT CHOOSES AN ALTERNATIVE SUPPLIER 28 AND SUBSEQUENTLY DESIRES TO RETURN TO THE LOCAL DISTRIBUTION 29 COMPANY FOR GENERATION SERVICE, THE LOCAL DISTRIBUTION 30 COMPANY SHALL TREAT THAT CUSTOMER EXACTLY AS IT WOULD ANY NEW 20080H2200B4429 - 34 -
1 APPLICANT FOR ENERGY SERVICE.
2 (5) (I) NOTWITHSTANDING PARAGRAPH [(3)] (3.1), THE
3 ELECTRIC DISTRIBUTION COMPANY OR COMMISSION-APPROVED
4 ALTERNATIVE SUPPLIER MAY, IN ITS SOLE DISCRETION, OFFER
5 LARGE CUSTOMERS WITH A PEAK DEMAND OF 15 MEGAWATTS OR
6 GREATER AT ONE METER AT A LOCATION IN ITS SERVICE
7 TERRITORY ANY NEGOTIATED RATE FOR SERVICE AT ALL OF THE
8 CUSTOMERS' LOCATIONS WITHIN THE SERVICE TERRITORY FOR ANY
9 DURATION AGREED UPON BY THE ELECTRIC DISTRIBUTION COMPANY
10 OR COMMISSION-APPROVED ALTERNATIVE SUPPLIER AND THE LARGE
11 CUSTOMER. THE COMMISSION SHALL PERMIT, BUT SHALL NOT
12 REQUIRE, AN ELECTRIC DISTRIBUTION COMPANY OR COMMISSION-
13 APPROVED ALTERNATIVE SUPPLIER TO PROVIDE SERVICE TO LARGE
14 CUSTOMERS UNDER THIS PARAGRAPH. CONTRACT RATES ENTERED
15 INTO UNDER THIS PARAGRAPH SHALL BE SUBJECT TO REVIEW BY
16 THE COMMISSION IN ORDER TO ENSURE THAT ALL COSTS RELATED
17 TO THE RATES ARE BORNE BY THE PARTIES TO THE CONTRACT AND
18 THAT NO COSTS RELATED TO THE RATES ARE BORNE BY OTHER
19 CUSTOMERS OR CUSTOMER CLASSES. IF NO COSTS RELATED TO THE
20 RATES ARE BORNE BY OTHER CUSTOMERS OR CUSTOMER CLASSES,
21 THE COMMISSION SHALL APPROVE THE CONTRACT WITHIN 90 DAYS
22 OF ITS FILING, OR IT SHALL BE DEEMED APPROVED BY
23 OPERATION OF LAW UPON EXPIRATION OF THE 90 DAYS.
24 INFORMATION SUBMITTED UNDER THIS PARAGRAPH SHALL BE
25 SUBJECT TO THE COMMISSION'S PROCEDURES FOR THE FILING OF
26 CONFIDENTIAL AND PROPRIETARY INFORMATION.
27 (II) FOR PURPOSES OF PROVIDING SERVICE UNDER THIS
28 PARAGRAPH TO CUSTOMERS WITH A PEAK DEMAND OF 20 MEGAWATTS
29 OR GREATER AT ONE METER AT A LOCATION WITHIN THAT
30 DISTRIBUTION COMPANY'S SERVICE TERRITORY, AN ELECTRIC
20080H2200B4429 - 35 -
1 DISTRIBUTION COMPANY THAT HAS COMPLETED ITS RESTRUCTURING 2 TRANSITION PERIOD AS OF THE EFFECTIVE DATE OF THIS 3 PARAGRAPH MAY, IN ITS SOLE DISCRETION, ACQUIRE AN 4 INTEREST IN A GENERATION FACILITY OR CONSTRUCT A 5 GENERATION FACILITY SPECIFICALLY TO MEET THE ENERGY 6 REQUIREMENTS OF THE CUSTOMERS, INCLUDING THE ELECTRIC 7 REQUIREMENTS OF THE CUSTOMERS' OTHER BILLING LOCATIONS 8 WITHIN ITS SERVICE TERRITORY. THE ELECTRIC DISTRIBUTION 9 COMPANY MUST COMMENCE CONSTRUCTION OF THE GENERATION 10 FACILITY OR CONTRACT TO ACQUIRE THE GENERATION INTEREST 11 WITHIN THREE YEARS AFTER THE EFFECTIVE DATE OF THIS 12 PARAGRAPH, EXCEPT THAT THE ELECTRIC DISTRIBUTION COMPANY 13 MAY ADD TO THE GENERATION FACILITIES IT COMMENCED 14 CONSTRUCTION OR CONTRACTED TO ACQUIRE AFTER THIS THREE- 15 YEAR PERIOD TO SERVE ADDITIONAL LOAD OF CUSTOMERS FOR 16 WHOM IT COMMENCED CONSTRUCTION OR CONTRACTED TO ACQUIRE 17 GENERATION WITHIN THREE YEARS. NOTHING IN THIS PARAGRAPH 18 REQUIRES OR AUTHORIZES THE COMMISSION TO REQUIRE AN 19 ELECTRIC DISTRIBUTION COMPANY TO COMMENCE CONSTRUCTION OR 20 ACQUIRE AN INTEREST IN A GENERATION FACILITY. THE 21 ELECTRIC DISTRIBUTION COMPANY'S INTEREST IN THE 22 GENERATION FACILITY IT BUILT OR CONTRACTED TO ACQUIRE 23 SHALL BE NO LARGER THAN NECESSARY TO MEET PEAK DEMAND OF 24 CUSTOMERS SERVED UNDER THIS SUBPARAGRAPH. DURING TIMES 25 WHEN THE CUSTOMER'S DEMAND IS LESS THAN THE ELECTRIC 26 DISTRIBUTION COMPANY'S GENERATION INTEREST, THE ELECTRIC 27 DISTRIBUTION COMPANY MAY SELL EXCESS POWER ON THE 28 WHOLESALE MARKET. AT NO TIME SHALL THE COSTS ASSOCIATED 29 WITH THE GENERATING FACILITY INTERESTS BE INCLUDED IN 30 RATE BASE OR OTHERWISE REFLECTED IN RATES. THE GENERATION 20080H2200B4429 - 36 -
1 FACILITY INTERESTS SHALL NOT BE COMMISSION-REGULATED 2 ASSETS. 3 (6) A DEFAULT SERVICE PLAN APPROVED BY THE COMMISSION 4 PRIOR TO THE EFFECTIVE DATE OF THIS SECTION SHALL REMAIN IN 5 EFFECT THROUGH ITS APPROVED TERM. AT ITS SOLE DISCRETION, THE 6 DEFAULT SERVICE PROVIDER MAY PROPOSE AMENDMENTS TO ITS 7 APPROVED PLAN THAT ARE CONSISTENT WITH THIS SECTION, AND THE 8 COMMISSION SHALL ISSUE A DECISION WHETHER TO APPROVE OR 9 DISAPPROVE THE PROPOSED AMENDMENTS WITHIN NINE MONTHS OF THE 10 DATE THAT THE AMENDMENTS ARE FILED. IF THE COMMISSION FAILS 11 TO ISSUE A FINAL ORDER WITHIN NINE MONTHS, THE AMENDMENTS 12 SHALL BE DEEMED TO BE APPROVED AND THE DEFAULT SERVICE 13 PROVIDER MAY IMPLEMENT THE AMENDMENTS AS FILED. 14 (7) THE DEFAULT SERVICE PROVIDER SHALL OFFER RESIDENTIAL 15 AND SMALL BUSINESS CUSTOMERS A GENERATION SUPPLY SERVICE RATE 16 THAT SHALL CHANGE NO MORE FREQUENTLY THAN ON A QUARTERLY 17 BASIS. ALL DEFAULT SERVICE RATES SHALL BE REVIEWED BY THE 18 COMMISSION TO ENSURE THAT THE COSTS OF PROVIDING SERVICE TO 19 EACH CUSTOMER CLASS ARE NOT SUBSIDIZED BY ANY OTHER CLASS. 20 (F) SMART METER TECHNOLOGY AND TIME OF USE RATES.-- 21 (1) WITHIN NINE MONTHS AFTER THE EFFECTIVE DATE OF THIS 22 PARAGRAPH, ELECTRIC DISTRIBUTION COMPANIES SHALL FILE A SMART 23 METER TECHNOLOGY PROCUREMENT AND INSTALLATION PLAN WITH THE 24 COMMISSION FOR APPROVAL. THE PLAN SHALL DESCRIBE THE SMART 25 METER TECHNOLOGIES THE ELECTRIC DISTRIBUTION COMPANY PROPOSES 26 TO INSTALL IN ACCORDANCE WITH PARAGRAPH (2). 27 (2) ELECTRIC DISTRIBUTION COMPANIES SHALL FURNISH SMART 28 METER TECHNOLOGY AS FOLLOWS: 29 (I) UPON REQUEST TO A CUSTOMER THAT AGREES TO PAY 30 THE COST OF THE SMART METER. 20080H2200B4429 - 37 -
1 (II) IN THE CONSTRUCTION OF A NEW RESIDENCE OR NEW 2 BUILDING TO BE USED BY A COMMERCIAL CUSTOMER. 3 (III) IN ACCORDANCE WITH A SCHEDULE OF REPLACEMENT 4 OF FULL DEPRECIATION OF EXISTING METERS. 5 (3) ELECTRIC DISTRIBUTION COMPANIES SHALL, WITH CUSTOMER 6 CONSENT, MAKE AVAILABLE ELECTRONIC ACCESS TO CUSTOMER METER 7 DATA TO THIRD PARTIES, INCLUDING ELECTRIC GENERATION 8 SUPPLIERS AND PROVIDERS OF CONSERVATION AND LOAN MANAGEMENT 9 SERVICES. 10 (4) AN ELECTRIC DISTRIBUTION COMPANY SHALL NOT BE 11 PERMITTED TO RECOVER THE COSTS, AS DETERMINED BY THE 12 COMMISSION, OF PROVIDING SMART METER TECHNOLOGY UNDER 13 PARAGRAPH (2). 14 (5) IN NO EVENT SHALL LOST OR DECREASED REVENUES BY AN 15 ELECTRIC DISTRIBUTION COMPANY DUE TO REDUCED ELECTRICITY 16 CONSUMPTION OR SHIFTING ENERGY DEMAND BE CONSIDERED A COST OF 17 SMART METER TECHNOLOGY. 18 (6) BY JANUARY 1, 2010, OR AT THE END OF THE APPLICABLE 19 GENERATION RATE CAP PERIOD, WHICHEVER IS LATER, A DEFAULT 20 SERVICE PROVIDER SHALL SUBMIT TO THE COMMISSION ONE OR MORE 21 PROPOSED TIME-OF-USE RATES AND REAL-TIME PRICE PLANS. THE 22 COMMISSION SHALL APPROVE OR MODIFY THE TIME-OF-USE RATES AND 23 REAL-TIME PRICE PLAN WITHIN SIX MONTHS OF SUBMITTAL. THE 24 DEFAULT SERVICE PROVIDER SHALL OFFER THE RATES AND REAL-TIME 25 PRICE PLAN TO ALL RESIDENTIAL AND COMMERCIAL CUSTOMERS THAT 26 HAVE BEEN PROVIDED WITH SMART METER TECHNOLOGY WITHIN 60 DAYS 27 OF INSTALLATION OF THE SMART METER TECHNOLOGY OR COMMISSION 28 APPROVAL OF THE TIME-OF-USE RATES AND REAL-TIME PRICE PLAN, 29 WHICHEVER IS LATER. RESIDENTIAL OR COMMERCIAL CUSTOMERS MAY 30 ELECT TO PARTICIPATE IN TIME-OF-USE RATES OR REAL-TIME 20080H2200B4429 - 38 -
1 PRICING. THE DEFAULT SERVICE PROVIDER SHALL SUBMIT AN ANNUAL 2 REPORT TO THE COMMISSION ON THE PARTICIPATION IN THE TIME-OF- 3 USE AND REAL-TIME PRICE PROGRAMS AND THE EFFICACY OF THE 4 PROGRAMS IN AFFECTING ENERGY DEMAND AND CONSUMPTION AND THE 5 EFFECT ON WHOLESALE MARKET PRICES. 6 (7) THE PROVISIONS OF THIS SUBSECTION SHALL NOT APPLY TO 7 AN ELECTRIC DISTRIBUTION COMPANY WITH 100,000 OR FEWER 8 CUSTOMERS. 9 (G) DEFINITION.--AS USED IN THIS SECTION, THE TERM "SMART 10 METER TECHNOLOGY" MEANS TECHNOLOGY, INCLUDING METERING 11 TECHNOLOGY AND NETWORK COMMUNICATIONS TECHNOLOGY CAPABLE OF 12 BIDIRECTIONAL COMMUNICATION, THAT RECORDS ELECTRICITY USAGE ON 13 AT LEAST AN HOURLY BASIS, INCLUDING RELATED ELECTRIC 14 DISTRIBUTION SYSTEM UPGRADES TO ENABLE THE TECHNOLOGY. THE 15 TECHNOLOGY SHALL PROVIDE CUSTOMERS WITH DIRECT ACCESS TO AND USE 16 OF PRICE AND CONSUMPTION INFORMATION. THE TECHNOLOGY SHALL ALSO: 17 (1) DIRECTLY PROVIDE CUSTOMERS WITH INFORMATION ON THEIR 18 HOURLY CONSUMPTION. 19 (2) ENABLE TIME-OF-USE RATES AND REAL-TIME PRICE 20 PROGRAMS. 21 (3) EFFECTIVELY SUPPORT THE AUTOMATIC CONTROL OF THE 22 CUSTOMER'S ELECTRICITY CONSUMPTION BY ONE OR MORE OF THE 23 FOLLOWING AS SELECTED BY THE CUSTOMER: 24 (I) THE CUSTOMER; 25 (II) THE CUSTOMER'S UTILITY; OR 26 (III) A THIRD PARTY ENGAGED BY THE CUSTOMER OR THE 27 CUSTOMER'S UTILITY. 28 (4) PROVIDE A MEANS TO OBTAIN REAL-TIME CONSUMPTION 29 INFORMATION FROM A METER SUCH AS AN INSTALLED PORT OR OUTPUT 30 FOR TRANSMITTING METER PULSE DATA EXTERNAL TO THE METER TO BE 20080H2200B4429 - 39 -
1 USED BY THE CUSTOMER, THE ELECTRIC DISTRIBUTION COMPANY OR A 2 THIRD PARTY ENGAGED BY THE CUSTOMER IN THE ELECTRIC 3 DISTRIBUTION COMPANY. 4 SECTION 4. TITLE 66 IS AMENDED BY ADDING A SECTION TO READ: 5 § 2813. PROCUREMENT OF POWER. 6 EXCEPT AS PROVIDED UNDER THE ACT OF NOVEMBER 30, 2004 7 (P.L.1672, NO.213), KNOWN AS THE ALTERNATIVE ENERGY PORTFOLIO 8 STANDARDS ACT, THE COMMISSION MAY NOT ORDER A DEFAULT SERVICE 9 PROVIDER TO PROCURE POWER FROM A SPECIFIC GENERATION SUPPLIER, 10 FROM A SPECIFIC GENERATION FUEL TYPE OR FROM NEW GENERATION 11 ONLY. 12 SECTION 5. THIS ACT SHALL TAKE EFFECT IN 60 DAYS. A11L66GRH/20080H2200B4429 - 40 -