Pennsylvania utility to seek more renewable energy credits

PECO plans to seek bids from alternative energy producers, including some hydropower, to supply energy credits to help the utility meet Pennsylvania’s Alternative Energy Portfolio Standards. Proposals are expected to be due in late January 2009.

PECO plans to disclose the solicitation schedule during a teleconference Nov. 24 to outline details of the solicitation and terms of agreements. Parties wanting to participate must send an e-mail to with the subject line �AEC Bidder Teleconference.� PECO said it would release information on the RFP process to interested parties as it becomes available. More information is available on a PECO Internet site,

A tentative schedule calls for notices of intent in early December, bid qualifications in early January, and proposals in late January.

PECO seeks fixed-price, five-year agreements to purchase up to a total of 410,000 credits a year from non-solar alternative energy sources. PECO, an Exelon company, anticipates entering into agreements by February 2009, for purchases beginning by Dec. 31, 2009. PECO said it seeks bids for alternative energy credits only, not for energy and capacity.

Alternative energy credits are sold by renewable energy generators on a one-to-one basis each time one megawatt-hour of renewable energy is produced. Pennsylvania requires that by 2011, 3.5 percent of energy sold to PECO customers be provided through renewable resources, such as �low-impact� hydro, wind, methane, geothermal, biomass, or fuel cells. By 2020, that increases to 8 percent of total energy sold to customers. PECO said it could need as much as 1,512 MW of renewable resources by 2020 to meet the requirement.

PECO named Navigant Consulting its independent monitor to oversee PECO’s bidder evaluation process, evaluate bids, and report on the results of the RFP process to the Pennsylvania Public Utility Commission.

PECO closed its first 2008 solicitation for renewable energy credits in March. From those bids it chose to purchase 240,000 alternative energy credits from Iberdrola Renewables. (HNN 1/23/08) Wind energy associated with those renewable credits is to be generated from the Province Heights Wind Farm in Illinois.

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