Sierra Club applauds signing of
energy conservation law

Allentown (October 15, 2008) - The Pennsylvania Sierra Club applauded Governor Rendell’s signature on HB 2200, the Energy Conservation bill. The energy conservation law requires Pennsylvania’s electric utilities to reduce the electricity consumption by 1 percent within 3 years (May 2011) and by 3 percent within 5 years (May 2013). The law also requires utilities to reduce peak demand by 4.5 percent in 2013. “Pennsylvania has finally turned the corner from electric demand growth to electric conservation,” noted Jeff Schmidt, state director of the Sierra Club. “This law is sorely needed to hold down energy costs and to curb the need for new peak load electric generating plants.”

As part of the law, electric companies must offer time of use rates and a real time price plan to all customers who have smart meters. Residential or commercial customers will have the option to choose time of use rates or real time pricing. With the looming rate increases in 2010, Pennsylvania consumers can use the smart meter tool to limit their electricity consumption to off-peak hours, thereby saving on electric bills. The law allows electric companies 15 years to phase in smart meters to existing customers, but requires smart meters for all new building construction.

Providing electricity at peak demand periods is expensive for electric utilities, which pass on their costs to customers. A 1 percent reduction during high peak demand times can cut the market price of electricity by 10 percent. Nationwide, energy efficiency programs have helped electricity customers to reduce their energy bills by 20-30%.

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