Act 129 is Pennsylvania’s flagship energy efficiency law. Signed into law by Governor Ed Rendell in 2008, the Act requires each of Pennsylvania’s seven major electric distribution companies (EDCs) to reduce energy use within their service territories. In the first seven years of the law, utility programs were established to meet reduction targets; these programs delivered $6.4 billion in benefits to all customer classes.

The Public Utility Commission (PUC) sets efficiency targets for each EDC based on a third-party expert review of energy efficiency potential.

• Utilities meet these targets over the course of a three to five year “Phase” determined by the Commission.

• Phase IV of Act 129 began in June 2021 and will end in June 2026.

Utilities meet Act 129 targets by contracting with conservation service providers (CSPs) to implement energy efficiency programs.

• Types of programs include rebates and incentives for high-efficiency appliances and lighting, upgrades to industrial processes, advanced building controls, and construction of efficient new buildings.

• Efficiency programs must be cost-effective over 15 years and savings are verified by third parties.

Act 129 delivered $9 billion in benefits to Pennsylvania electric customers in its first twelve years.

• Customers who take advantage of Act 129 programs directly benefit through bill savings.

• Efficiency investments on a large scale have reduced energy demand, avoiding the need for expensive utility investments in new power generation, transmission, and distribution infrastructure.

• Act 129 has saved over 20 million megawatt-hours since 2008—despite being constrained to a 2% spending cap tied to 2006 EDC revenues.

Energy efficiency creates jobs.

• In 2023, energy efficiency accounted for almost 73,000 Pennsylvania jobs.

• Efficiency jobs can be found in every county in the Commonwealth, and most jobs are in fields that can’t be outsourced, like construction.

• The energy efficiency workforce includes electricians, engineers, architects, trained technicians, financial analysts, construction workers, facility managers, software developers, marketing professionals, and other specialists.

Act 129 programs are expected to achieve nearly a 3.1% cumulative reduction in annual electricity use statewide during the five-year Phase IV.

Source: Phase IV Final Implementation Order – The Act 129 Phase IV EE&C Program Implementation Order. From the Public Meeting of June 18, 2020. Docket No. M-2020-3015228.

Source: Act 129 SWE Phase IV Program Year 15 Final Annual Report – https://www.puc.pa.gov/media/3262/swe_py15_final_annual_report120424.pdf

KEEA has been at the forefront of Act 129 advocacy since its founding in 2007.

• KEEA advocacy was critical in developing legislation and building support to win Act 129’s passage through the legislature in 2008.

• KEEA has intervened in utility rate cases to strengthen Act 129 implementation targets and defend energy efficiency.

• KEEA has been a consistent voice at the PUC in strengthening efficiency programs during each phase of Act 129 implementation.

• Over the last several years, KEEA has successfully protected customers against multiple attempts to cut Act 129 budgets by making large customer contributions to the program voluntary.

During the Phase IV Period (2021-26), the EDCs will continue to conduct annual stakeholder meetings where the Companies will review the performance, progress, and operation of the programs with stakeholders for collaborative discussion and feedback. Additionally, the EDCs will meet with stakeholders on an as-needed, requested, or ongoing basis to discuss ongoing plans and programs.

Phase V is set to begin in June 2026. The Public Utility Commission is underway with the planning of this next Phase. The PUC began meeting with stakeholders in early 2024 and will continue throughout the year to develop how Phase V will be implemented. To ensure the plans for Phase V effectively advance and maximize energy efficiency investment for Pennsylvania, KEEA will participate in and alert members to these stakeholder opportunities.