Environmental Law

Pennsylvania Moves to Boost Energy Efficiency

By Dennis Pfaff and Kevin Livingston, Editors

Pennsylvania, it seems, is making some pretty significant moves to improve energy efficiency in that state, and also to promote alternative energy use and development.

In the past few weeks, the state's Democratic Gov. Edward G. Rendell (pictured) has signed legislation that he said would help save Pennsylvanians save $500 million in the next five years by prodding utilities to increase energy efficiency. Among the provisions of the bill is a requirement that every home and business in the state be equipped with "smart meters" within 15 years. He also announced some hefty investments in alternative energy and efficiency projects.

Smart meters allow consumers to monitor their electricity use in ways that can encourage them to cut back on energy consumption it is most expensive. As part of the legislation, the utilities will be directed to offer customers pricing plans that reward ratepayers who shift their usage to off-peak hours. California is pressing forward with a similar concept and it is also prodding utilities to move aggressively to save energy.

In a statement, Rendell touted the cost savings aspects of the bill, which is intended to cut electricity use by 1 percent by 2011 and by 3 percent by 2013:

“This bill marks a great step forward in our efforts to help electricity consumers save on their energy bills by reducing consumption and its establishes Pennsylvania as a leader among states working to encourage conservation.”

At least one Pennsylvania newspaper, The Morning Call, noted that consumers in the state still face a major worry about their bills because of the imminent expiration of caps on utility rates. Those caps were imposed for 10 years in exchange for market deregulation, according to the newspaper. 

Rendell, in his statement on the bill signing, cited the "crushing blow" that resulting rate increases of between 20 percent and 60 percent could deliver to the state's residents and he urged lawmakers to quickly address the issue.

In a separate move, Rendell unveiled investments of nearly $12 million in clean energy projects that the state estimated would create more than 1,200 full- and part-time jobs and would attract almost $118 million in private money. Rendell signed a bill in July that, according to the governor's office, would invest more than $665 million in energy conservation and alternative energy projects.

According to the statement from the governor's office, companies and projects getting the initial round of investment included assisting a photovoltaic company in an effort to reduce manufacturing costs on solar modules; helping public agencies install solar-powered roadway lighting and low-energy traffic signals. Another project involves installation of a solar system to dewater iron oxide from mine drainage.

--Dennis Pfaff of Thelen LLP

Photo: Courtesy, Gov. Rendell's office

Full post as published by Climate Law Update on October 28, 2008 (boomark / email).