A Summary of the 2010 Annual Report of the Alternative Energy Portfolio Standards (AEPS) Act of 2004

Abstract

In 2004, the Pennsylvania Legislature passed the Alternative Energy Portfolio Standards Act. This legislation requires an annually increasing percentage of electricity sold to retail customers in Pennsylvania by both electric distribution companies (EDC) and electric generation suppliers (EGS) to originate from alternative energy sources. The goal is to have 18% of all energy supplied by EDC’s & EGS’s in the state to originate from alternative sources by 2021. Qualifying alternative energy sources are divided into two Tiers with solar sources considered independently. Utilities are also permitted to comply with the law by purchasing alternative energy credits (AEC’s) in lieu of actually producing energy. To ensure that EDC’s & EGS’s comply with the legislation, the Pennsylvania Public Utility Commission (PUC) is charged with enforcing the provisions of the law. In addition, the Department of Environmental Protection (DEP) is responsible for monitoring compliance with all relevant environmental and health and safety standards relevant to the law’s implementation. Section 7(c) of the Act requires the PUC & DEP to produce an annual report detailing how well utilities within the state have complied with the legislation. For the 2010 reporting year, all EDC’s & EGS’s with an energy obligation under the act were in compliance. While the annual report is too large cover in its entirety, the purpose of this summary is to serve as a starting point for practitioners seeking further information regarding utility compliance in 2010. For that reason, this summary focuses specifically on the compliance numbers and the overall marketplace for alternative energy in Pennsylvania.