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(Allentown, Pa) – Sustainable Energy Fund (“SEF”) urges advocacy groups and local electric customers to oppose the Energy Efficiency and Conservation Plan filed by PPL with the Pennsylvania Public Utility Commission on July 1, 2009.
SEF’s Director of Technical Services, John Costlow stated, “It is unusual for us to oppose a plan that is supposed to decrease energy consumption. At Sustainable Energy Fund we are all about energy efficiency and renewable energy, but this is a bad plan and a poor use of rate payer money.”
Costlow continues, “This program is being funded by us, the electric customers, not PPL.” The proposed Energy Efficiency and Conservation plan will be funded through a $246 million surcharge that will be collected from PPL’s electric customers over the next 3 ½ years. Based on the proposed plan and the number of customers reported in PPL’s 2008 Annual Report, SEF estimates that the plan will cost residential customers $104,573,5381 or about $85 each and commercial customers $141,431,4351 or about $810 each over the three and a half years. On behalf of local electric customers, SEF has staff and consultants examining in detail the more than 300 pages of the filing.
Mr. Costlow noted, “SEF’s initial review has revealed 25% of the $246 million plan is for administrative costs and that 76% of the projected Net Lifetime Energy Consumption Savings for residential customers [exclusive of low-income] comes from collecting old appliances and installing compact fluorescent light bulbs, over 7 million bulbs.”
“On July 7, 2009 the Commission released estimates on the expected rate increase coming in January. The report estimates that come January 1, 2010 PPL’s residential customers will see a 30.4% increase and its mid-size commercial customers will see a 36.8% increase in their electric bills,” Costlow added.
SEF has also discovered, by reviewing direct testimony filed with the plan, that PPL proposes adding the $246 million surcharge to distribution rates thereby avoiding a separate charge on the customer’s bill. Joseph Kleha, PPL Electric’s Manager – Regulatory Compliance and Rates, stated in testimony that “PPL Electric proposes that the cost recovery mechanism be applied to distribution charges for each customer rather than appear as a separate line item on the customers’ bill.” And that “… annual spending could be less than or more than the cap” referring to the cap imposed by ACT 129 that limits how much utilities can spend each year on the program3. Mr. Costlow stated, “I am concerned about any charge that is buried on the bill as it would be difficult for most customers to determine what the program is actually costing them.”
SEF is currently preparing a petition to intervene in the proceeding and plans to launch a series of educational ads and workshops within the next several weeks to help local electrical customers understand the program, its impacts, and how it can be made better. “With properly designed and administered renewable energy, energy efficiency, and energy conservation programs PPL could help its customers mitigate the escalating cost of local electric service and SEF is going to work with these customers to help make that happen,” stated John Costlow.
On October 15, 2008 Governor Rendell signed HB2200 creating ACT129 of 2008. The ACT implemented by the Commission imposed new regulations on Pennsylvania’s largest electric distribution companies with the goal of reducing energy consumption and demand. Costlow stated, “SEF supports the ACT and applauds the General Assembly, the Governor, and the Commission on enacting the legislation and then quickly implementing the regulations for utilities.” Among other things the ACT requires utilities to design, administer and manage energy efficiency and conservation programs for the benefit of their customers. In PPL’s service territory the plan is expected to reduce energy consumption by 3% or 1,146,000 MWh and peak demand by 4.5% or 297 MW by 20131. Final program approval is expected by the Commission in the late fall. About SEF- Sustainable Energy Fund (SEF) is a private non-profit organization that promotes energy efficiency, renewable energy and education initiatives in the Commonwealth of Pennsylvania. SEF seeks out, focuses on, and invests in economically viable, energy related businesses, projects, and educational initiatives that create innovative, market-based technologies and solutions to enable environmentally sound and sustainable energy use. Headquartered in Allentown, SEF may also finance certain projects in the eastern PJM grid territory, which includes New Jersey, Delaware, and Maryland. By offering financial incentives that promote sound energy strategies, SEF can help municipalities, school districts, non-profits, farmers, manufacturing facilities, warehouses, transportation companies and other businesses save energy and reduce costs. SEF also provides educational services which include Sustainable Scholars, Solar Scholarssm, Wind Scholars, and the Sustainable Energy Conference being held in Easton this year.
1 PPL Electric Utilities Corporation Energy Efficiency and Conservation Plan Docket No. M-2009-2093216 date July 1, 2009.
2 PUC Electric Price Estimates July 2009 page 3 bottom. http://www.puc.state.pa.us/electric/electric_price_estimates.aspx
3 Direct Testimony of Joseph M. Kleha Docket M-2009-2093216 July 1, 2009.
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