Hearing on AEPS Act of 2004 – Net Metering and HB 1349

Sep 2, 2015Testimony, Briefs, & Filings

Before the House Consumer Affairs Committee

Hearing on AEPS Act of 2004 — Net-Metering and HB 1349

Testimony of
Donna M.J. Clark
Vice President and General Counsel
Energy Association of Pennsylvania
September 2, 2015

Good morning, Chairman Godshall, Chairman Daley and members of the House Consumer Affairs Committee. I am Donna Clark, Vice President and General Counsel of the Energy Association of Pennsylvania (“EAP” or “Association”), a trade organization comprised of the major regulated electric and gas public utilities operating in the Commonwealth. Today, I am here to speak specifically concerning matters that impact the Association’s electric utility members, otherwise known as electric distribution companies (“EDCs”).1 Thank-you for providing this opportunity to address industry support for and concerns with net-metering as it currently stands in Pennsylvania and to offer our perspective on HB 1349.

I. Evolution of Net-Metering Provisions Under the AEPS Act

Enacted in 2004, the Alternative Energy Portfolio Standards Act (“AEPS Act”), 73 P.S. § 1648.1 et seq. promotes the development of alternative energy in Pennsylvania in two fundamental ways. First, the AEPS Act mandates a greater reliance on identified (Tier I and Tier II) alternative energy sources through a 15-year schedule pursuant to which EDCs and electric generation suppliers (“EGSs”) must purchase increasing amounts of electric energy generated by alternative energy sources for resale to Pennsylvania’s retail electric consumers. 73 P.S. §§ 1648.3 (b) and (c). Second, the AEPS Act encourages customer-generators to obtain electric power through eligible onsite alternative energy systems which can be net-metered and interconnected to the distribution system of the EDC that serves the customer-generator. 73 P.S. § 1648.5.

The AEPS Act has been amended on two occasions: First, by Act 35 of 2007, which amended certain provisions for net-metering and interconnection including, inter alia, the definitions for customer-generator and net-metering as well as provisions concerning the reconciliation mechanism for surplus energy supplied through net-metering and the price to be paid by the EDC to the customer-generator for such surplus energy. 73 P.S. §§ 1648.2 and 1648.5; Second, by Act 129 of 2008, which expanded the scope of eligible Tier I alternative energy sources (to include biomass energy and specific categories of low-impact hydropower) and amended the Tier I compliance obligation to increase the percentage share of Tier I resources mandated to be purchased and resold by EDCs and EGSs. 66 Pa. C.S. § 2814.

Questions

Please direct any questions or requests for more information to
Debra Kitner
by email or phone at (717) 901-0607.