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West Chester Daily Local - 04/22/2008

State Senate considers energy efficiency bill H.B. 2200

By ANNE PICKERING, Staff Writer

With energy conservation measures seen as the fastest way to reduce greenhouse gasses, legislators in the state House of Representatives passed an energy efficiency bill in February whose goal is to cut projected energy use by 2.5 percent in the next five years.

The state Senate is now considering the bill, H.B. 2200, that has the support of area environmental groups including PennEnvironment, PennFuture and the Sierra Club.

A poll of state senators in the southeast Pennsylvania region found that many support an energy efficiency bill, said Nathan Wilcox, energy and clean air advocate for Penn-Environment in an interview Monday, but it is not certain whether they will support this particular bill.

According to PennEnvironment, cutting energy use by 2.5 percent in five years is a modest goal, but if achieved it would result in 7.4 million fewer tons of global warming pollution being created in Pennsylvania or the equivalent of removing more than 1.3 million cars from the road for a year.

In addition to cutting overall demand by 2.5 percent, the bill also has a goal of cutting peak demand by 4 percent over four years. Peak demand refers to those times when energy usage is at its highest -- generally on hot summer days. In Pennsylvania, some of the oldest and dirtiest coal-fired plants are used when utilities need extra power to meet peak demand, said Wilcox.

If peak demand can be reduced, it’s possible it won’t be necessary to build additional power plants, said Wilcox, a step that would save ratepayers millions of dollars.

State Rep. Barbara McIlvaine Smith, D-156th, of West Chester, was one of the co-sponsors of H.B. 2200, which passed the House Feb. 12, with a 152-45 vote.

“H.B. 2200 is one significant step on the long road toward achieving the goal” of a healthier environment, a stronger economy and reduced dependency on foreign oil. “We need to make Pennsylvania a model for the rest of the country,” McIlvaine Smith said.

In two separate op-ed opinion pieces, state Sen. Edwin Erickson, R-26th, of Newtown Square, and state Sen. John Rafferty, R-44th, of Collegeville, supported legislation with the goal of cutting projected energy use by 2.5 percent although neither specifically mentioned H.B. 2200. Rafferty’s letter appeared in the Pottstown Mercury on April 12 and Erickson’s letter appeared in the Delaware County Daily Times on April 20.

State Sen. Andy Dinniman, D-19th, of West Whiteland, said Monday there is wide support in the Senate for a strong energy efficiency bill. “We want a strong energy conservation measure. What we want to examine is the cost to consumers.”

To achieve the target reductions in energy use, H.B. 2200 authorizes the Pennsylvania Public Utility Commission to appoint a system administrator who works with a third-party entity, which could be the utility itself, in developing energy conservation programs. The administrator has to ensure that programs have clear goals including cost and benefits and there is a process for monitoring and verifying results. The commission reviews the recommendations of the program administrator. Costs to implement the programs can be passed along to consumers but are capped at 2 percent of the utilities’ overall revenues.

In Chester County, PECO, a subsidiary of Exelon Corp., is the sole provider of electricity and natural gas. If the bill passed, PECO could request to be the third-party provider.

Wilcox said the kind of energy efficiency programs that other states have passed include setting incentives for incorporating green building techniques in new construction or providing flourescent light bulbs to consumers.

H.B. 2200 also requires that the electric utility offer smart meter technology to a certain percentage of customers until it is offered to all in 10 years. Smart meters show consumers when electricity is most expensive. The theory is that if consumers have that information, they will choose to run appliances at times when rates are the lowest.

Cathy Engel, communications manager at PECO, said she could not comment about legislation that had not passed yet.

“We certainly support efforts to increase energy efficiency for our customers and to provide our customers the tools they need to use energy efficiently. In general, we support the passage of a comprehensive, overall energy package that would help our customers manage increases in energy prices and Pennsylvania’s increased energy needs,” said Engel.

The utility currently has a proposal before the PUC for a program called Phase One residential real time pricing. If the PUC approves it, customers who are participating will have access to an interactive Web site and their meters will be upgraded. Customers will be able to go on line every day and see what the estimated cost of their energy for the next day will be. Based on that information, consumers could change their usage patterns.

There is also information on PECO’s Web site regarding discounts for PECO customers who purchase energy efficient products.

Environmental groups are hopeful the Senate will take up the bill this spring before adjourning for the summer.