About the AEPS Act

The Alternative Energy Portfolio Standards Act of 2004 (AEPS) requires electric distribution companies (EDC) and electric generation suppliers (EGS) include a specific percentage of electricity from alternative energy resources in the generation that they sell to Pennsylvania customers. EDCs and EGSs meet this requirement by utilizing alternative energy credits (AECs) generated by qualified alternative energy sources to demonstrate compliance with the AEPS Act.

The PUC has retained InClime, Inc. as the Program Administrator to perform the administrative functions of the AEPS Act. The Program Administrator reports directly to and is under the direction of the PUC. Responsibilities of the Program Administrator can be found in the AEPS Act and include qualifying alternative energy systems and verifying electric distribution company (EDC) and electric generation supplier (EGS) compliance with the Act.

Pennsylvania Act 213 of 2004 established the Alternative Energy Portfolio Standards Act of 2004 (AEPS). The AEPS Act was enacted to provide economic development opportunities by increasing the mix of alternative electricity generation. The AEPS Act also required that electric distribution companies (EDCs) and electric generation suppliers (EGSs) include a percentage of electricity from alternative resources. Act 35 of 2007 amended the AEPS Act to clarify definitions within the Act. In 2016 the AEPS Act was updated and revised. Information on the updates and revisions can be found at docket L-2014-240361.

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 Pennsylvania 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.

Act 40 of 2017 modified the AEPS Act to only allow solar PV systems physically connected to a Pennsylvania EDC’s transmission system within the Pennsylvania EDC’s service territory to qualify to generate energy and SAECs eligible to be used by Pennsylvania EDCs and EGSs to meet the solar PV share requirements. Additional information on Act 40 of 2017 can be found at docket M-2009-2093383.

Act 114 of 2020 established geographical limits on Tier II alternative energy resources under the AEPS Act. Additional information on Act 114 of 2020 can be found at docket M-2020-3023323.