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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: January 29, 2019 11:08 AM
From: Representative Jason Ortitay
To: All House members
Subject: Cutting Costs and Ending Subsidies in the PA Electricity Market
In the near future, I will be introducing legislation to reaffirm Pennsylvania’s commitment to competitive energy markets. To do so, it is critical that we have a fair playing field. The Alternative Energy Portfolio Standards (AEPS) Act of 2004 was implemented when the market for alternative energy in Pennsylvania was in its infancy and was designed to subsidize and incentivize renewable energy sources. It mandates that certain percentages of electricity sold to retail customers be generated by alternative energy.

AEPS requires that by 2021, 8% of electricity must come from Tier I resources, which includes a mandated carve-out of .5% for solar. Tier I resources include solar thermal electric, wind, low-impact hydropower, geothermal electric energy, biologically derived methane gas, fuel cells, biomass, electricity produced in-state from the by-products of pulping and wood manufacturing industries, and coal mine methane. 10% of electricity must come from Tier II resources by 2021. Tier II resources include electricity produced out-of-state from the by-products of pulping and wood manufacturing industries, waste coal, distributed generation systems, demand-side management, large-scale hydropower, pumped storage hydropower, municipal solid waste, and integrated combined coal gasification technology.

AEPS requires that the energy sold to consumers comes from these sources no matter the cost. This mandate runs counter to the fundamental purpose of Pennsylvania’s competitive energy market: consumer choice. If consumers want to purchase a specific electricity source, then they have the ability to do that. It is time that we stop allowing government to intervene in this market and stop allowing them to use ratepayer dollars to subsidize corporate interests.

Please join me in sponsoring this legislation to reaffirm our support for Pennsylvania’s competitive electricity market.

Introduced as HB767