PECO Energy Settlement Includes Funding for Renewable Energy

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http://www.solarbuzz.com/News/NewsNAGO271.htm

Citizens for Pennsylvania's Future (PennFuture) and 11 other parties have reached a settlement with Philadelphia-based PECO Energy that will cut the costs of electricity to residential, small business and commercial customers; maintain current prices for the delivery of electricity (transmission and distribution, or T&D fees) for four more years; substantially expand assistance to low income customers; improve reliability of electricity to customers; increase economic development programs; adopt rules that will allow customers with solar panels or other personal power to sell excess electricity back to the company; and massively boost funding for renewable energy development and conservation programs.

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In addition to the millions in rate cuts, consumers will also get a four- year extension of the T&D rate cap that will otherwise expire on December 31, 2006. This extension is worth millions, and is unusual for Pennsylvania. In 2004, the PUC granted Allentown-based PPL a $194.3 million increase when that company's rate cap expired.

Renewable energy and energy conservation will also get a $19.2 million boost from the settlement, with PECO Energy paying $12 million to the Pennsylvania Energy Development Authority (PEDA) "for the purposes of funding renewable energy, energy efficiency and energy conservation," and $7.2 million to the Sustainable Development Fund.

When combined with Pennsylvania's landmark Alternative Energy Portfolio Standard law, the Energy Harvest program, the sustainable development funds, and Pennsylvania's vibrant voluntary green energy market, the $19.2 million of renewable energy and conservation benefits from the settlement means Pennsylvania can build thousands of megawatts of new wind, solar, biomass, methane and energy conservation projects.

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