Pennsylvania Energy Efficiency Obligation

In 2004, the government of Pennsylvania introduced an energy efficiency obligation for the residential, commercial and industrial sectors. The legislation concerns electricity. Obligated parties include major electric distribution companies. Phase II of the EE&C Program establishes electricity savings targets for the three-year period from FY2014-16. The targets amount to 2.3% cumulative savings over the three year period. Phase III is a five year period running from 2016-2020. Targets vary by utility, but total 5 710 487 MWh over the phase, equivalent to about 0.77% incremental savings per year through 2020. Eligible energy efficiency measures include HVAC equipment - ranging from room air conditioners to large centrifugal chillers - as well as lighting, energy management controls upgrades, drives and motors, and food service equipment; also appliances, lighting, motors and drives, HVAC, compressed air, and refrigeration measures: Calculation of savings is based on deemed and metered savings. The evaluation of ratepayer-funded energy efficiency programmes in Pennsylvania relies on both legislative mandates and regulatory orders. The order follows the legislation. Evaluations are mainly administered by the Pennsylvania Public Utilities Commission, but there are no specific legal. Under Act 129, the electric distribution companies' energy efficiency and conservation plans propose a cost-recovery tariff mechanism to fund the energy efficiency and conservation measures and to ensure recovery of reasonablecosts. The utilities can also recover the costs through a reconcilable adjustment mechanism.

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