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PRINTER'S NO. 1274
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
805
Session of
2017
INTRODUCED BY BOSCOLA, BROWNE, ARGALL, AUMENT, EICHELBERGER,
HUTCHINSON, MENSCH, SCAVELLO, STEFANO, VULAKOVICH AND WARD,
OCTOBER 19, 2017
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
OCTOBER 19, 2017
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in restructuring of electric utility
industry, further providing for energy efficiency and
conservation program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2806.1(a)(10), (b)(1) introductory
paragraph and (i)(B) and (I), (c)(3), (d)(2), (f)(1)(i) and (ii)
and (2)(i) and (ii) introductory paragraph and (A) and the
definition of "conservation service provider" in subsection (m)
of Title 66 of the Pennsylvania Consolidated Statutes are
amended, subsection (m) is amended by adding a definition and
the section is amended by adding subsections to read:
ยง 2806.1. Energy efficiency and conservation program.
(a) Program.--The commission shall, by January 15, 2009,
adopt an energy efficiency and conservation program to require
electric distribution companies to adopt and implement cost-
effective energy efficiency and conservation plans to reduce
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energy demand and consumption within the service territory of
each electric distribution company in this Commonwealth. The
program shall include:
* * *
(10) A requirement for the [participation] utilization
of conservation service providers [in] to facilitate the
implementation of all or part of a plan.
* * *
(b) Duties of electric distribution companies.--
(1) The following apply:
(i) By July 1, 2009, each electric distribution
company shall develop and file an energy efficiency and
conservation plan with the commission for approval to
meet the requirements of subsection (a) and the
requirements for reduction in consumption under
subsections (c) and (d). The plan shall be implemented
upon approval by the commission. The following are the
plan requirements:
* * *
[(B) A minimum of 10% of the required reductions
in consumption under subsections (c) and (d) shall be
obtained from units of Federal, State and local
government, including municipalities, school
districts, institutions of higher education and
nonprofit entities.]
* * *
(I) The electric distribution company shall
demonstrate that the plan is cost effective using a
total resource cost test approved by the commission
and provides a diverse cross section of alternatives
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for participating customers of [all] rate classes
included in the plan.
* * *
(c) Reductions in consumption.--The plans adopted under
subsection (b) shall reduce electric consumption as follows:
* * *
(3) By November 30, 2013, [and every five years
thereafter,] the commission shall evaluate the costs and
benefits of the program established under subsection (a) and
of approved energy efficiency and conservation plans
submitted to the program. The evaluation shall be consistent
with a total resource cost test or a cost-benefit analysis
determined by the commission. If the commission determines
that the benefits of the program exceed the costs, the
commission shall adopt additional required incremental
reductions in consumption. Following May 31, 2021, the term
of a plan shall be determined by the commission but shall not
exceed five years.
(c.1) Option.--
(1) Prior to each phase of implementation of the program
beginning after May 31, 2021, by a date determined by the
commission, a customer that is a member of a large commercial
class or industrial class may opt to cease participation in
the electric distribution company plan for all of the
customer's eligible accounts. A customer that opts to cease
participation in a plan under this paragraph shall remain
opted out of the electric distribution company plan for all
subsequent phases of implementation of the program unless and
until the customer, by a date determined by the commission
prior to implementation of a subsequent phase, opts to resume
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participation in the electric distribution company plan.
(2) A customer that opts out of a plan under paragraph
(1):
(i) shall not be eligible to receive grants, rebates
or other funding contained in the plan for the opt-out
accounts during the applicable phase; and
(ii) shall not be required to pay a recovery under
subsection (k) for the opt-out accounts during the
applicable phase.
(3) By December 31, 2018, the commission shall establish
guidelines to implement this subsection.
(c.2) Refund.--Any overcollections or undercollections from
any customer classes shall be refunded or recovered, as
appropriate in accordance with the commission's implementation
order for the subsequent phase.
(d) Peak demand.--The plans adopted under subsection (b)
shall reduce electric demand as follows:
* * *
(2) [By November 30, 2013, the commission shall compare
the total costs of energy efficiency and conservation plans
implemented under this section to the total savings in energy
and capacity costs to retail customers in this Commonwealth
or other costs determined by the commission. If the
commission determines that the benefits of the plans exceed
the costs, the commission shall set additional incremental
requirements for reduction in peak demand for the 100 hours
of greatest demand or an alternative reduction approved by
the commission. Reductions in demand shall be measured from
the electric distribution company's peak demand for the
period from June 1, 2011, through May 31, 2012. The
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reductions in consumption required by the commission shall be
accomplished no later than May 31, 2017.] The commission
shall not mandate any peak demand reductions in any new plan
implemented after May 31, 2021.
* * *
(f) Penalties.--
(1) The following shall apply for failure to submit a
plan:
(i) An electric distribution company that fails to
file a plan under subsection (b) shall be subject to a
civil penalty of not more than $100,000 per day until the
plan is filed.
(ii) An electric distribution company that fails to
file a revised plan under subsection (e)(2)(ii) shall be
subject to a civil penalty of not more than $100,000 per
day until the plan is filed.
* * *
(2) The following shall apply to an electric
distribution company that fails to achieve the reductions in
consumption required [under subsection (c) or (d)] by the
commission under subsection (c):
(i) The electric distribution company shall be
subject to a civil penalty [not less than $1,000,000 and]
not to exceed [$20,000,000] $5,000,000 for failure to
achieve the [required] reductions in consumption [under
subsection (c) or (d)] required by the commission under
subsection (c). Any penalty paid by an electric
distribution company under this subparagraph shall not be
recoverable from ratepayers.
(ii) If an electric distribution company fails to
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achieve the [required] reductions in consumption [under
subsection (c) or (d)] required by the commission under
subsection (c), responsibility to achieve the reductions
in consumption shall be transferred to the commission.
The commission shall do all of the following:
(A) Implement a plan to achieve the [required]
reductions in consumption [under subsection (c) or
(d)] required by the commission under subsection (c).
* * *
(m) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Conservation service provider." An entity that provides
information and technical assistance on measures to enable a
person to increase energy efficiency or reduce energy
consumption [and that has no direct or indirect ownership,
partnership or other affiliated interest with an electric
distribution company].
* * *
"Large commercial class or industrial class." The group of
customers categorized as large commercial or as industrial by an
electric distribution company in its original energy efficiency
and conservation plan under subsection (b)(1)(i) or as filed in
the company's tariff.
* * *
Section 2. This act shall take effect in 60 days.
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