Gov. Rendell’s Energy Independence Strategy Good for PA Businesses, Says DCED Secretary

WILLIAMSPORT, Pa., March 19 /PRNewswire-USNewswire/ — Department of Community and Economic Development Secretary Dennis Yablonsky today told Lycoming County business leaders that Governor Edward G. Rendell’s innovative Energy Independence Strategy will save consumers $10 billion over the next 10 years, promote Pennsylvania’s energy independence, and create 13,000 new jobs by rapidly expanding the commonwealth’s clean energy business sector.

“The Governor’s Energy Independence Strategy will boost economic growth by investing in Pennsylvania’s vibrant clean-energy industry,” Yablonsky said. “This investment will attract new businesses, make existing businesses more competitive, and encourage new investment in Pennsylvania.

“At the same time, we’ll be able to cut energy costs with new metering technologies that help customers monitor and control energy use, and offer incentives to replace outdated appliances with modern, energy-efficient models. Affordable and secure sources of electric power are vital to maintaining our growing economy.”

At the Governor’s direction, the Department of Community and Economic Development has worked to attract some of the world’s leading advanced energy companies to Pennsylvania, creating more than 2,500 jobs in the commonwealth. To ensure that Pennsylvania’s economy continues to benefit from this high- growth sector, the Energy Independence Fund will invest $850 million to cut consumer energy costs by $10 billion over the next decade, stabilize electricity rates for businesses, significantly expand Pennsylvania’s alternative fuel and clean energy industries, and reduce dependence on foreign fuel.

The Energy Independence Strategy will also leverage private-sector expertise to help Pennsylvania companies cut energy costs with state-of-the- art conservation technology. Energy consumers at work and at home will save money because utilities will be required to invest in conservation measures rather than additional power plants that are more costly.

“By supporting conservation and the production of renewable energy sources, we’ll be able to lower demand for electricity from traditional power plants during periods of peak demand and avoid the need to build costly new power plants or long-distance transmission lines to meet our growing energy needs,” Yablonsky said.

The strategy also calls for up to $500 million in grants and low-interest loans for projects involving clean energy business sites or business sites incorporating Leadership in Energy and Environmental Design-standard buildings. Funds will be used to renovate existing buildings and industrial sites, and for the acquisition, construction and improvement of regional energy projects.

These funds will also encourage new technology development that will allow Pennsylvania’s traditional energy industries, such as coal and natural gas, to prosper by offering ready access to venture capital, working capital, loans and limited grants.

The Governor’s proposal also includes $200 million for rebates to homeowners who replace inefficient home cooling appliances, and the Pennsylvania Sunshine Solar Initiative that will create incentives for solar manufacturers to establish operations in Pennsylvania.

The solar initiative offers rebates to cover up to 50 percent of the cost of new solar systems for homeowners and small businesses. At current electricity rates, the average household could save about $600 a year with a 5 kW system, or solar panels that generate more than half of the electricity consumed in the home.

“Pennsylvania Sunshine” will also help the commonwealth meet the aggressive clean power goals set by Governor Rendell under the Alternative Energy Portfolio Standard (AEPS). The Pennsylvania AEPS contains one of the most ambitious standards for solar power in the nation, requiring that solar energy generate 0.5 percent of all electricity in the commonwealth, an equivalent to powering almost 80,000 typical homes per year in the state.

“There is no reason why the commonwealth should not lead the nation in conservation and in the creation of new energy sources,” Yablonsky added. “Pennsylvania’s businesses, farmers and homeowners will benefit from this plan.”

Secretary Yablonsky said the Pennsylvania Public Utility Commission estimates that an average, medium-sized commercial business uses about 120,000 kWh per year of electricity. The cost of that usage varies by utility territory, but on average, a Pennsylvania commercial entity pays $.0877 per kWh or about $10,524 per year. That business could take advantage of some or all of the following:

   — Applying for a grant or loan through the Pennsylvania Energy      Development Authority to provide funding for an energy efficiency and      demand management project for the facility, which would reduce      electricity use by automatically turning off lights in unoccupied rooms      and monitor energy prices, reducing usage at times when prices are most      expensive. An earlier Pennsylvania demand management project resulted      in savings of 40 percent for a commercial office, with even greater      savings in a warehouse setting. That translates to $4,209.60 annually.   — Installing a 20 kW solar system through the Pennsylvania Sunshine Solar      Initiative, saving about $2,093.14 a year on energy costs and receiving      a rebate of up to $25,000.   — Benefiting from a 5 percent reduction in demand on the overall      electricity system achieved through a combination of measures proposed      in the strategy, including time-of-use rates, long term contracts and      least-cost portfolio. The estimated savings for a medium sized      commercial customer would be $526.20.   

Funding for the Energy Independence Strategy will be generated by a minimal charge on electric power consumption. Similar charges are in place in 15 states and the District of Columbia. The charge is proposed at $0.0005 per kWh of electricity used.

For more information on Governor Rendell’s Energy Independence Strategy visit http://www.newpa.com/ or call 1-866-GONEWPA (1-866-466-3972) or visit the Department of Environmental Protection’s Web site at http://www.depweb.state.pa.us/, keyword: “Energy.”

CONTACT: Kevin Ortiz

(717) 783-1132

Pennsylvania Department of Community and Economic Development

CONTACT: Kevin Ortiz of the Pennsylvania Department of Community andEconomic Development, +1-717-783-1132

Web site: http://www.state.pa.us/http://www.newpa.com/http://www.depweb.state.pa.us/