The Alternative Energy Portfolio Standards Act of 2004 (AEPS) requires a specific percentage of electricity include alternative resources in the generation that they sell to Pennsylvania customers. EDCs and EGSs meet this requirement by utilizing Alternative Energy Credits (AECs). An AEC is created each time a qualified alternative energy facility produces 1,000 kWh of electricity. The AEC is then sold or traded separately from the power and allows EDCs and EGSs to procure AECs to meet their compliance obligations.
Pennsylvania’s energy year runs from June 1st to May 31st. EDCs and EGSs report monthly retail sales to PennAEPS on a quarterly basis during the energy year. Each quarter the Program Administrator reconciles the entries and calculates the quarterly adjustment. Act 129 of 2008 expanded the types of sources that qualify as Tier I alternative energy sources under the AEPS Act to include specific categories of low impact hydropower and biomass energy. The Act also required the PUC to increase, at least quarterly, the percentage share of Tier I resources to be sold by EDCs and EGSs to reflect any new Tier I resources added as a result of this amendment.
The AEPS act gradually increases the amount of alternative energy required over a fifteen year schedule as found in the Act and the AEPS percentages by reporting year report. The fifteen year schedule increases obligation requirements through the 2021 energy year. For future years, the percentages are held at 2021 energy year percentages.
EGSs and EDCs have access to the PennAEPS electric supplier portal by logging into the PennAEPS site. The Utilities link in the top menu bar allows EGSs and EDCs to access their information to enter quarterly load data, download past load entries in Excel format and view compliance obligations from prior energy years. Please contact the PA AEPS Administrator for detailed instructions on how make load entries in PennAEPS.
New EGSs serving load in Pennsylvania should contact the PA AEPS Administrator for assistance in establishing an account on PennAEPS.
At the end of the energy year, the Program Administrator will calculate AEC obligations for each EGS and EDC and issue obligation letters on July 15th. EDCs and EGSs have until September 1st to complete AEC retirements in PJM-GATS. Retirements not made by this date will be subject to the Alternative Compliance Payment.
Please refer to the compliance timeline for important due dates and FAQs for additional information.
