Pennsylvania currently has no statewide requirements for interconnection of renewable energy systems other than standards established under the federal PURPA law. However, in January 2001 the Pennsylvania Public Utility Commission (PUC) established an Interconnection Working Group to “consider whether unnecessary barriers currently impede the interconnection of distributed generation resources to the electric distribution company (EDC) distribution grid” and “explore the feasibility of developing uniform interconnection standards to be followed by all the EDCs.”

In February, 2004 the PUC staff began to revitalize the efforts of the working group because numerous stakeholders continued to promote distributed generation as a demand-side response to enhance the reliability and economic efficiency of both the wholesale and retail electricity markets. The current efforts will continue dialogue with the working group and stakeholders, develop a strawman proposal, and provide recommendations to the PUC.

For more information contact Karen Oill Moury at kmoury@state.pa.us.

The state’s first utility to adopt a net metering tariff, Philadelphia Electric Co. (PECO), recently increased its system limit to 40 kW and streamlined its interconnection requirements. Covering most of southeastern Pennsylvania, PECO offers three net metering options:

• Customer is not subject to additional meter charges but forfeits any surplus each month
  
• Customer is charged $4.46/month for second meter to measure “sale” of excess power back to the grid through annual reconciliation
  
• Customers is charged net incremental cost for “smart” meter plus an additional $5.09/month for the residential time-of-use rate to allow annual reconciliation based on on-peak and off-peak periods.

Electrical interface protection is required to monitor current, voltage and frequency, and to disconnect the power source from the grid if predetermined limits are exceeded. Installations must meet all local municipality building codes, the National Electrical Code, and the National Electrical Safety Code, and must be inspected by an approved electrical underwriter. The quality of service must be documented prior to connection and must conform to standards described for wave-form, harmonic distortion, and voltage limits. Allegheny Power (West Penn) has established standards titled “Nonutility Generators, Interconnection Policy and Guidelines,” in APS Engineering Manual Section 35, which are available upon request. Pennsylvania Power & Light Co. (PPL) and Duquesne Light require that customer equipment conform to the Company’s “Relay and Control Requirements for Parallel Operation of Non-utility Generation.”

Each utility’s policies for purchasing customer-owned generation are described in their Electric Tariff schedules. Philadelphia Electric Co. (PECO)’s “Requirements for Parallel Operations for Customers with Generation Not Exceeding 40 kW” became effective April 6, 2001. PECO charges $100 to process net metering applications to interconnect photovoltaic (PV) systems meeting IEEE and UL standards, and $300 for all other distributed generation technologies. Interconnection is not allowed prior to PECO’s approval; the company pledges a “good faith effort” to complete the approval process within 30 days of receiving the application. For installations that fail to meet the stated requirements, customers will be charged actual costs for re-inspections. PECO will pay the first $1,000 for distribution equipment upgrades, but the customer will pay any remaining costs for transformers or other rearrangements required at PECO’s discretion. 

Allegheny Power (West Penn)’s Net Metering Riderfor systems up to 10 kW, modeled after PECO’s earlier requirements, was issued in November 1999. West Penn charges $35 for the initial inspection of a qualifying PV system and actual cost up to $250 for the “engineering review and inspection of other renewable power production sources and their associated protective equipment.” Customers with qualifying facilities less than 50 kW can select other options to operate in parallel and sell power under terms of the Cogeneration Schedule 85 and/or Alternative Generation Rider Schedule 86established under West Penn’s Electric Tariff No. 39.   

Pennsylvania Power & Light Co. (PPL)’s Renewable Energy Development Rider for systems up to 10 kW also is similar to PECO’s earlier net metering policy, charging customers for all interconnection equipment over $1,000 and a processing fee of $300 for non-PV installations. However, under the two-meter and “smart meter” options, PPL calculates Transmission and Distribution Charges on both energy delivered by the Company and generated by the Customer. PPL’s Electric Tariff No. 201 also specifies rates for supplementary and backup power in Rule 6A-Standby Service for Qualifying Facilities.   

Duquesne Light’s current standards for connecting qualifying and non-utility generating facilities are available from “a Company Representative upon request” (call 888-393-7100 or visit www.duquesnelight.com/ContactUs/Email/default.cfm). Pennsylvania Power Co, Metropolitan Edison (Metro Ed)’s and Pennsylvania Electric Company (Penelec) have issued their comprehensive electric generation supplier coordinated tariff in December 2003 under parent company First Energy. Pike County Light & Power Company’s Electric Tariff No. 8 includes Rider A - Purchase of Energy from Customers with Qualifying On Site Generation Facilities for systems up to 500 kW (pages 81-83), with options for tiered rates for on-peak and off-peak periods or a flat rate less monthly charges, and net energy billing for systems up to 50 kW. Pike’s Service Classifications 5) Supplementary, Back-up or Maintenance (pages 102-104) and 6) Interruptible Service (pages 105-108) specify charges for interconnection of Small Power Production and Cogeneration Facilities. Citizen’s Electric of Lewisburg’s Tariff No. 14 states in the Cogeneration & Small Power Production Qualifying Facility Service section that "Qualifying Facility" (QF) or a "Small Power Production Facility" (SPP) that meets Federal Energy Regulatory Commission (FERC) certification requirements with generating capacity of 500 kW or less will be purchased by the Company in accordance with rates and terms identified:

Option A - Energy credit based on the Company's projected cost for the year ending: 2.82¢ per kWh during on and off peak hours.

Option B- A combination of the highest capacity and energy credits based on projected Company cost for the year ending. This option will require a signed contract with a minimum of 3 years: 3.83¢ per kWh during on peak hours or 2.82¢ per kWh during off peak hours.

Any reasonable additional connection costs above the cost to service Customer's electrical load with Citizens' Electric will be paid by customer may incur to allow the purchase of power from the qualifying facility. Customers with more than 500 kW of generating capacity or customers that do not meet FERC certification requirements can apply for specific contract terms.

UGI Utilities, Inc.’s Electric Tariff No. 5 includes the following provision for interconnection. Supplemental use of renewable energy sources states that sources such as wood, solar, wind and water are permitted in conjunction with service supplied under any rate scheduled previously in the Tariff without violating the total electric space and/or water heating requirement of the rate. Any Customer system of this type that produces electric energy may not be operated concurrently with service supplied by the Company except under written agreement setting forth the conditions of such operation.

Customer Co-Generation (pages 35-39) offers three options for qualifying facilities up to 500 kW and three net energy billing options for residential customers with systems up to 50 kW.

We are unaware of a net metering policy for Wellsboro Electric or any other simplified interconnection agreements for wind energy facilities in Pennsylvania. This means that many wind system owners are likely to be subject to interconnection requirements for “qualifying facilities” under the Federal PURPA Law.

Public Benefit Funds
Although Pennsylvania's electricity restructuring law did not establish a clean energy fund, renewable and sustainable energy funding programs were created with the state’s five major distribution companies through individual settlements. The mission of these funds is to promote: (1) renewable energy and advanced clean energy technologies and services; (2) energy conservation and efficiency technologies and services; and (3) the growth of sustainable energy businesses that design, manufacture, sell, install or maintain the technologies in either (1) or (2). The funds are empowered to provide financial assistance in the form of loans, near-equity and equity investments and grants.

The Metropolitan Edison Region SEF, serving Metropolitan Edison customers of the FirstEnergy (formerly GPU) service territory, is administered by the Berks County Community Foundation. This is a companion fund to the Penelec Region SEF. The Penelec Region SEF, serving Penelec customers of the FirstEnergy (formerly GPU) service territory, is administered by the Community Foundation of the Alleghenies. This is a companion fund to the Metropolitan Edison Region SEF.

The Sustainable Development Fund, serving the Southeastern Pennsylvania PECO service territory, is administered by The Reinvestment Fund.  

The West Penn Power SEF, serving the West Penn Power market area, is administered by The Energy Institute of Penn State University, in partnership with Energetics, Incorporated, with all non-invested assets managed by PNC Bank.  

The Sustainable Energy Fund of Central Eastern Pennsylvania, serving the Central Eastern Pennsylvania PP&L Electric Utilities Corporation service territory.  

Each fund has its own seven-member board appointed from the major constituencies in the restructuring cases. The Pennsylvania PUC has approved bylaws for each of the funds and created a statewide board to oversee and help coordinate their activities. A Statewide Sustainable Energy Board was formed in 1999 to enhance communications among the four funds and state agencies. Download the 2003 Annual report (released in May 2004) for details on administration of funds. The Annual Report of provides loan and grant information for each of the regional boards in 2003, and highlights the key projects and significant accomplishments of the regional boards.

As shown in this Annual Report, the funding approved by the Commission has enabled the regional boards to provide financial support to a variety of sustainable energy initiatives, with loans and grants totaling over $9.6 million in 2003.

Pennsylvania Energy Harvest is part of a state plan to meet 10% of Pennsylvania’s energy needs with green power by encouraging more state agencies to use alternative energy sources. The initiative is open to farmers, local governments, conservation districts, nonprofit organizations, farms, businesses, and school districts, colleges and universities.  

Contacts:
 
Pennsylvania Public Utility Commission 
P.O. Box 3265 
Harrisburg, PA 17105-3265 
Phone: (717) 783-7349 
Website: http://puc.paonline.com 

Pennsylvania Department of Environmental Protection
Kurt M. Knaus
Rachel Carson State Office Building
P.O. Box 2063
Harrisburg, PA 17105-2063
Phone: (717) 787-1323
Website: http://www.dep.state.pa.us

Northeast Sustainable Energy Association
50 Miles Street
Greenfield, MA 01301
Phone: 413-774-6051
Website: http://www.nesea.org

Pennsylvania Office of Consumer Advocate
555 Walnut Street
5th Floor Forum Place
Harrisburg, PA 17101-1923
Phone: (717) 783-5048
Fax: (717) 783-7152
E-Mail: consumer@paoca.org
Website: http://www.oca.state.pa.us

Solar PV Grant Program
7217 Oak Avenue
Melrose Park, PA 19027-3222
Phone: (215) 635-0900
E-Mail: solarpv@trfund.com
Website: http://www.trfund.com

Sustainable Development Fund
718 Arch Street, 3N
Philadelphia, PA 19106
Phone: (215) 925-1130 x227
Fax: (215) 925-4764
Website: http://www.trfund.com/sdf

Additional information can be found on AWEA’s Pennsylvania Wind Power Web site.

Pennsylvania electric utilities offer a variety of additional incentives (in the form of local grants, loans, and rebate programs) for alternative energy development.

Grants are available from Metropolitan Edison Company, Penelec, Community Foundation for the Alleghenies (FirstEnergy Territory), Central Eastern Pennsylvania Grant Program (PP&L Territory), Sustainable Development Fund Grant Program (PECO Territory), and West Penn Power.

Loans are available from Metropolitan Edison Company SEF Loans (FirstEnergy Territory), Penelec SEF of the Community Foundation for the Alleghenies (FirstEnergy Territory, Central Eastern Pennsylvania Loan Program (PP&L Territory), Sustainable Development Fund Commercial Financing Program (PECO Territory), and West Penn Power SEF Commercial Loan Program.

The US Department of Energy has produced wind resource maps for each state. The map for Pennsylvania can be found here.

There is additional information in the Wind Energy Atlas of the United States, where you can review maps for other locations in the US or get more information about how the maps were created. You may also find useful information at the web site for the National Renewable Energy Laboratory (NREL). This site contains extensive information about wind resources in the United States.

The Philadelphia Million Solar Roofs Partnership maintains a Bulletin Board on interconnection issues.

Ron Celentano is a local expert on net metering who may be able to answer questions or provide more updated information.

The Northeast Sustainable Energy Association maintains a searchable database called the Sustainable Yellow Pages where you can search for wind energy professionals.

For additional wind turbine installers in your area, please contact small wind turbinemanufacturers from AWEA’s membership directory.

Contact your local utility to request additional information on their interconnection policies. Links to download current tariffs for all 10 Pennsylvania electric distribution companies can be found here.

The Pennsylvania Public Utility Commission is responsible for regulations relating to the electric utility industry. The US Department of Energy’s Energy Efficiency and Renewable Energy Network maintains a list of state contacts.  

The American Wind Energy Association (AWEA) has launched a Pennsylvania Wind Power website in cooperation with the Mid-Atlantic Renewable Energy Coalition’s Pennsylvania Wind Campaign. 

PennFuture is leading the “Green Power: Turn it On!” campaign to ensure that in 10 years, 10% of PA's electricity will come from renewable energy sources. 

The Northeast Sustainable Energy Association (NESEA) has information on energy deregulation and renewable energy. The US Department of Energy’s Energy Efficiency and Renewable Energy Network maintains a list of state contacts.

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