On August 3, 2012, pursuant to Act 129 of 2008 (Act 129), the Pennsylvania Public Utility Commission (PUC) issued an order extending mandatory electricity consumption reduction targets in the commonwealth into a second phase (the Implementation Order). On August 20, Met- Ed, Penelec, Penn Power, West Penn Power (collectively, the First Energy Utilities) and PPL Electric filed Petitions for Reconsideration of the Implementation Order. On August 30, the PUC Commissioners voted unanimously to grant the petitions.
Phase I of the Act 129 Energy Efficiency and Conservation Program (E&C Program), which began in June 2009 and ends in May 2013, required Pennsylvania's seven largest electric distribution companies (EDCs) to adopt energy efficiency and conservation plans to reduce expected electricity consumption by 3 percent. The Implementation Order extended the EE&C Program into a second phase, and requires each EDC to further reduce electricity consumption by approximately 2 percent between June 2013 and May 2016.
The First Energy Utilities challenged the enforceability of the Implementation Order itself, including, as a result, the electricity consumption reduction targets. They allege that the PUC did not "adhere to the formalities required to adopt a 'regulation,' and, as a consequence the [Implementation Order] does not have the 'force of law.'" First Energy Petition for Reconsideration at 3. They ask that the PUC deem the Implementation Order a "policy statement with which the Companies should strive to comply, rather than an order that creates binding norms and has the force of law." First Energy Petition for Reconsideration at 5.
The First Energy Utilities and PPL both raise concerns with the fast-track appeal process for utilities to challenge their Act 129 targets. Unlike Phase I, in which all the EDCs had to achieve the same electricity savings, the PUC set different savings targets for each EDC in Phase II. PECO was allocated the highest savings target of 2.9 percent while West Penn Power has the lowest target of 1.6 percent. The Implementation Order provided for a fast-track appeal process of the savings targets, requiring utilities to file appeals of their savings targets by August 20, 2012.
In its motion, PPL seeks the right to challenge its savings targets after the August 20 deadline based on changes to the EE&C Program during Phase II that affect PPL's ability to meet its targets. The First Energy Utilities ask the PUC to defer the August 20 deadline, and address challenges to the electricity reduction targets simultaneously with hearings on the utilities' EE&C plans.
The utilities must submit their EE&C plans by November 1, and the hearings will follow. Combining the hearings would defer determination on the Act 129 electricity reduction targets until at least February 28, 2013, when the PUC is scheduled to rule on the utilities' plans.
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