Electric Power Outlook - Pennsylvania Public Utility Commission

approval. The EDCs filed their Smart Meter Technology Procurement and Installation Plans on
Aug. 14, 2009. 41 The plans were approved in April/May 2010.
Smart meter technology includes metering technology and network communications technology
capable of bidirectional communication that records electricity usage on at least an hourly basis,
including related electric distribution system upgrades to enable the technology. The technology
must provide customers with direct access to and use of price and consumption information.
Default service providers with more than 100,000 customers must submit at least one proposed
time-of-use (TOU) rate and real-time pricing (RTP) plan. Commission approval is due within six
months of submittal. These pricing options must be offered to all customers that have been
provided with smart meter technology.
PURPA
Section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA) was implemented
to encourage the conservation of energy supplied by electric utilities, the optimization of the
efficiency of use of facilities and resources by electric utilities, and equitable rates to electric
consumers. One of the ways PURPA set out to accomplish its goals was through the
establishment of a new class of generating facilities that would receive special rate and
regulatory treatment. Generating facilities in this group are known as qualifying facilities (QFs),
and fall into two categories: qualifying small power production facilities and qualifying
cogeneration facilities.
A small power production facility is a generating facility of 80 MW or less whose primary
energy source is renewable (hydro, wind or solar), biomass, waste or geothermal resources. A
cogeneration facility is a generating facility that sequentially produces electricity and another
form of useful thermal energy (such as heat or steam) in a way that is more efficient than the
separate production of both forms of energy. With some limited exceptions, these facilities are
also limited in size to 80 MW.
Although enacted more than 30 years ago, PURPA continues to have an impact on
Pennsylvania’s EDCs. The Commission’s regulations govern the purchases and sales of energy
between QFs and electric utilities. It also governs the purchases and sales of capacity and
associated energy between suppliers of electric generation and electric utilities. 44
42
43
41 Docket Nos. M-2009-2123944 (PECO), M-2009-2123945 (PPL), M-2009-2123948 (Duquesne Light), M-2009-
2123950 (Met-Ed, Penelec and Penn Power) and M-2009-2123951 (West Penn Power).
42 Duquesne, Met-Ed, Penelec, Penn Power, PPL, PECO and West Penn.
43 Pub. L. 95-617, Title II, § 210, 92 Stat. 3144 (16 U.S.C.A. § 824a-3(a)—(j)).
44 52 Pa. Code §§ 57.31-57.39.
Electric Power Outlook for Pennsylvania 2010-15 19