Commission did not set any peak demand reduction targets for the Phase II EE&C program period in the at 33. Phase II Implementation Order. Id. While demand reduction targets have not been established for Phase II, the Commission recognizes that the EDCs, and residential electric customers in particular, have made significant strides in the implementation of residential curtailment measures, such as direct load control programs. Therefore, to minimize customer confusion or adverse customer reaction if these programs were interrupted, we stated in the Phase II that the EDCs may continue, under the Act 129 EE&C Program, Implementation Order residential DR curtailment measures, such as direct load control programs, that will be cost effective, if continued. We noted that such specific measures, if continued, could be viewed as providing an interim DR program until the Commission determines whether or not there is a cost-effective Act 129 peak demand reduction program design. at 42. Id. We also noted that EDCs seeking to establish new, or continue existing, load management programs that are prudent and cost-effective are free to file a petition with the Commission for approval of such programs under 66 Pa. C.S. § 1505(b) (related to the authority to order conservation and load management programs). We Commission’s explained that all prudent and reasonable costs incurred with such programs are recoverable in accordance with 66 Pa. C.S. § 1319 (related to the recovery of conservation or load management program costs). at 43. Phase II Implementation Order In its Benchmark Petition, PECO, requested that it be permitted inter alia, to allocate Phase II funds to: 1) continue its existing Mass Market Direct Load Control (DLC) Program; and 2) to prepare for anticipated Phase III demand reduction targets. We denied request because we found, that it would not be prudent to inter alia, PECO’s carve out Phase II funds for DR programs if the EDC could not also meet its Phase II consumption reduction targets until the Commission has made a cost-effectiveness determination and has set additional peak demand reduction requirements. PECO Phase at 16-17. II Benchmark Order
Commission did not set any peak demand reduction targets for the Phase II EE&C program period in the Phase II Implementation Order. Id. at 33. While demand reduction targets have not been established for Phase II, the Commission recognizes that the EDCs, and residential electric customers in particular, have made significant strides in the implementation of residential curtailment measures, such as direct load control programs. Therefore, to minimize customer confusion or adverse customer reaction if these programs were interrupted, we stated in the Phase II Implementation Order that the EDCs may continue, under the Act 129 EE&C Program, residential DR curtailment measures, such as direct load control programs, that will be cost effective, if continued. We noted that such specific measures, if continued, could be viewed as providing an interim DR program until the Commission determines whether or not there is a cost-effective Act 129 peak demand reduction program design. Id. at 42. We also noted that EDCs seeking to establish new, or continue existing, load management programs that are prudent and cost-effective are free to file a petition with the Commission for approval of such programs under 66 Pa. C.S. § 1505(b) (related to the Commission’s authority to order conservation and load management programs). We explained that all prudent and reasonable costs incurred with such programs are recoverable in accordance with 66 Pa. C.S. § 1319 (related to the recovery of conservation or load management program costs). Phase II Implementation Order at 43. In its Benchmark Petition, PECO, inter alia, requested that it be permitted to allocate Phase II funds to: 1) continue its existing Mass Market Direct Load Control (DLC) Program; and 2) to prepare for anticipated Phase III demand reduction targets. We denied PECO’s request because we found, inter alia, that it would not be prudent to carve out Phase II funds for DR programs if the EDC could not also meet its Phase II consumption reduction targets until the Commission has made a cost-effectiveness determination and has set additional peak demand reduction requirements. PECO Phase II Benchmark Order at 16-17.
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