Skip Navigation to main content U.S. Department of Energy U.S. Department of Energy Energy Efficiency and Renewable Energy
Bringing you a prosperous future where energy is clean, abundant, reliable, and affordable EERE Home
Federal Energy Management Program
 
About the ProgramProgram AreasInformation ResourcesFinancing MechanismsTechnologiesServicesHome
Equipment Procurement
New Construction / Retrofits
Operations and Maintenance
Utility Management Federal Utility Partnership Working Group Energy-Efficiency Funds and Demand Response Programs Purchasing Renewable Power Reducing Natural Gas Use Resources Contacts

Energy-Efficiency Funds and Demand Response Programs, Pennsylvania

Updated April 2007

What public-purpose-funded energy efficiency programs are available in my state?

As a result of restructuring in the state, the Pennsylvania Public Utilities Commission established four Sustainable Energy Funds (SEF) to promote renewable energy, advanced clean energy technologies, and energy conservation. Each fund is managed by an independent, non-profit administrator in the service territories of five of the state's major utilities (one fund covers both Met-Ed and Penelec). These funds offer financial assistance through providing financing for eligible projects. Interested federal customers should contact the program administrator for their service territory.

What utility energy efficiency programs are available to me?

Utilities in Pennsylvania do not currently offer any energy efficiency programs targeted at commercial and industrial customers.

What load management/demand response options are available to me?

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers two demand response programs that may be attractive to federal facilities:

  • The Emergency Load Response Program provides participants with a payment representing the marginal cost of power at the nearest hub on the PJM system (the locational marginal price, or "LMP") or $0.50/kWh, whichever is greater, for providing load reductions when notified by PJM of a system emergency. Compliance with any load reduction request is voluntary; no penalties are assessed if a participant decides not to provide a load reduction. Retail electricity customers may participate through any PJM Member (for example, their electricity provider) or directly, by registering as a Special Member with PJM.
  • The Economic Load Response Program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. As with the PJM emergency program, participation is fully voluntary. Program participants have the choice of two options: the Day-Ahead or Real-Time Option. In the Day-Ahead Option, participants submit load reduction bids (of at least 100 kW) into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices. In the Real-Time Option, participants can decide at any time to provide load curtailments (with one hour notice to PJM), and receive payment based on the real-time electricity price. Retail electricity customers can participate in the program through any existing PJM Member, such as their utility, a third-party electricity supplier, or a specialty "curtailment service provider" (CSP). Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both the emergency and economic programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation.

PECO's (Exelon) Smart Returns program is available to federal customers with curtailment capacity of 250 kW or more. The program has two options:

  • The Active Load Management option requires that customers reduce load to a Firm Service Level when requested (on one- or two-hour notice) by the utility, during periods of system limitations on summer weekdays; credit is provided based on the difference between the firm service level and the facility's peak load contribution (PLC, which is the facility's average peak during PJM's five highest load hours during the summer).
  • The Voluntary Load Reduction (VLR) option compensates customers for cutting usage during periods of high energy prices and has three alternatives ("Fixed Price," "Market Price," and "High Value") which vary based on the consistency with which the facility can respond to PECO's day-ahead or day-of curtailment calls and the price per energy reduced that will be attractive to the facility.

Pennsylvania Power and Light (PPL) is offering a real-time pricing option, the Demand-Side Initiative Rider to large (> 1,000 kW) customers through December 31, 2007. PPL provides participants with day-ahead hourly market prices for electricity. Participants are credited or charged at the market price for usage below or above their predetermined customer reference load profile. This allows facility operators to schedule the following day's operations accordingly.

Duquesne Light Company offers the Energy Exchange program, wherein participants with a curtailable load of 500 kW or greater can, upon notification by the company, offer to provide specified day-ahead load reductions for between two and twelve hours through a program Web site. If the company offers an attractive price in return (minimum of $0.30/kWh), the customer can accept and Duquesne, which does not own generating capacity itself, will attempt to market the reductions to its primary power supplier. If accepted, the utility again notifies the customer, this time that its offer has been accepted. Curtailments are quantified based on the customer's ten previous days' use.

Metropolitan Edison and Pennsylvania Electric (both subsidiaries of FirstEnergy) offer their Real Time Price Rate to existing customers with demands exceeding 400 kW. The companies notify customers each afternoon of the day ahead's bid and asked prices for consumption that falls short of or exceeds, respectively, a pre-established customer baseline load for the facility.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. In addition to grants and loans available through the Sustainable Energy Funds (see above), the following programs may be of interest to federal customers:

  • The Pennsylvania Energy Development Authority (PEDA), part of Pennsylvania's Department of Environmental Protection, manages a fund offering loans, loan guarantees, and grants of up to $1 million for alternative energy, energy efficiency, and load management projects. Projects must show financial commitment from at least one source other than PEDA and demonstrate a net environmental benefit to Pennsylvania.
  • The Pennsylvania Energy Harvest Grant Program offers grants to alternative energy and energy efficiency projects with preference for those that address the state's environmental goals (particularly in air quality improvement and watershed protection). Technologies ranging from wind power to waste coal utilization are eligible.

Are there energy efficiency programs sponsored by state government?

The Pennsylvania Department of Environmental Protection administers a variety of pollution prevention and energy efficiency programs. No programs are currently available to federal customers.

What additional opportunities are available to me?

Federal customers also have energy efficiency opportunities available with utilities that have area-wide contracts with GSA (e.g., Consolidated Natural Gas, First Energy, PP&L, and PECO Energy) and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.