Electric Power Outlook - Pennsylvania Public Utility Commission

Based on forecast growth data, consumption reduction goals total 1.5 million MWh in 2011 and
4.4 million MWh in 2013. Peak demand reduction goals total 1,193 MW for 2013. These goals
were adopted by the Commission on March 26, 2009. Total program costs are estimated at just
under $1 billion. 35 See Table 3.
Table 3 Consumption and peak demand reduction goals and cost
Company 1% (MWh) 3% (MWh) 4.5% (MW) Total Plan Cost
Duquesne 140,855 422,565 113 $78,183,806
Met-Ed 148,650 445,951 119 $99,467,568
Penelec 143,993 431,979 108 $91,898,976
Penn Power 47,729 143,188 44 $26,639,136
PPL 382,144 1,146,431 297 $246,005,504
PECO 393,860 1,181,580 355 $341,580,634
West Penn 209,387 628,160 157 $94,249,872
Total 1,466,618 4,399,854 1,193 $978,025,496
In 2009, the Commission established standards each program must meet and provided guidance on
the procedures to be followed for submittal, review and approval of all aspects of EDC plans.
Programs are evaluated using a total resource cost test. 36 Each plan must include a proposed cost
recovery tariff mechanism. Plans were filed on July 1, 2009. 37 The Commission approved the
plans, with modifications, in late October 2009, requiring the filing of revised plans within 60
days, which were subsequently approved. 38
Smart Meters and Time-of-Use Rates
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Section 2807(f) of the Public Utility Code requires that EDCs, with greater than 100,000
customers, file a smart meter technology procurement and installation plan with the Commission
for approval. Smart meters are to be furnished upon request from a customer that agrees to pay the
cost of the meter, in new building construction, and in accordance with a depreciation schedule not
to exceed 15 years.
A Smart Meter Procurement and Installation Implementation Order was adopted by the
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Commission on June 18, 2009. Each smart meter plan must include a summary of the EDC’s
current deployment of smart meter technology, if any; a plan for future deployment complete with
dates for key milestones; and measurable goals and other pertinent information. The Commission
granted a network development and installation grace period of up to 30 months following plan
35 Program costs are from individual plans and generally represent 2 percent of revenues as of December 2006
multiplied by four to reflect the four-year duration of the plans.
36 Docket No. M-2009-2108601.
37 Docket No. M-2008-2069887.
38 Docket Nos. M-2009-2093215, M-2009-2093216, M-2009-2093217, M-2009-2093218, M-2009-2092222, M-2009-
2112952 and M-2009-2112956.
39 66 Pa. C.S. § 2807(f).
40 Docket No. M-2009-209655.
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Pennsylvania Public Utility Commission