Dive Brief:
- Pennsylvania utilities have filed plans with state regulators for the third phase of their energy efficiency programs.
- According to its filing, the state's largest utility, Exelon's PECO Energy, is targeting reduced usage of 2.1 million MWh by 2021 – a plan that goes beyond goals set by regulators.
- The utility announced last month that efficiency programs had helped PECO customers reduce their energy use by more than 2 million MWh since the program launched in 2009.
Dive Insight:
Pennsylvania's energy efficiency program, Act 129, requires each investor-owned utility to procure cost-effective resources to reduce demand. According to the American Council for an Energy-Efficiency Economy (ACEEE), the program has led to "significantly expanded energy efficiency program offerings in recent years."
In August 2012, regulators established electricity savings targets for 2014-2016, targeting an average of 2.3% in cumulative savings. ACEEE said the third phase sets 5-year cumulative targets of 5.1 million MWh, equivalent to about 0.77% incremental savings per year through 2020.
Utility regulators set targets for individual utilities in September, and Platts reports that the utilities have come back with plans that may help the state exceed its goal.
The largest utility, PECO Energy, expects to exceed its target. PECO anticipates reducing usage by 2.1 million MWh, compared to a 1.9 million MWh target set by the Public Utilities Commission. The utility is required to cut demand by more than 160 MW, but expects to reduce it by 171 MW by the middle of 2021. PECO said last month that efficiency had saved customers some $463 million since 2009.
Pennsylvania law required all Pennsylvania electric utilities to develop programs to help customers reduce energy use by 1% by 2011 and 3% by 2013. By next year, utilities must slash electrical consumption another 2.9% by mid-2016 and 5% by 2021.