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 III of Act 129 began in June 2016 and will end in June 2021. This is the longest implementation phase of a law of this kind in the United States.

• KEEA submitted comments in response to the PUC’s Phase IV draft implementation order, which can be read in their entirety here.

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 $6.4 billion in benefits to Pennsylvania electric customers in its first seven 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.

Energy efficiency creates jobs.

• In early 2020, energy efficiency accounted for more than 71,000 Pennsylvania jobs, according to the Department of Energy.

• 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.

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.

Next Steps and Important Deadlines for Act 129 Phase V in 2024

2026 TRM Updates Timeline (estimated)
May 16, 2024 – Tentative 2026 TRM Order and Manual on Public Meeting Agenda
June 1, 2024 – Tentative 2026 TRM Order and Manual entered into the PA Bulletin
July 1, 2024 – Tentative 2026 TRM Order and Manual comments due
July 21, 2024 – Tentative 2026 TRM Order and Manual reply comments due
Sept.12, 2024 – Final 2026 TRM Order and Manual on Public Meeting Agenda