Vote No on SB 805: Large Commercial and Industrial Opt-Out of Act 129
Pennsylvania bill SB 805 would allow the Commonwealth’s largest energy users to opt out of Act 129’s
successful energy efficiency and conservation programs. If enacted, the negative economic impacts of this bill
would far outweigh any benefits that a few individual companies might reap.
Impacts would include:






A reduction in energy savings and conservation. Large energy users consume about one-third of
Pennsylvania’s electricity. Allowing this sector to forego participation in the Commonwealth’s energy
efficiency and conservation programs would significantly undermine Act 129’s goal to reduce statewide energy demand in a cost-effective way.
An increase in energy costs and pricing for all consumers. No matter where energy efficiency
measures are deployed, they benefit all ratepayers by reducing system-wide demand and avoiding the
need for far more expensive new generation, costly “peak” stand-by generation, and new or upgraded
transmission. Conversely, with participants opting out of efficiency programs, all customers pay more
for energy – including those that opted out to “save” money.
Undermining of a successful and growing advanced energy economy. On account of good energy
efficiency policy, Pennsylvania’s robust advanced energy economy continues to grow, with local, statewide, national, and international companies setting up shop in the Commonwealth, creating local jobs
that can’t be outsourced. Currently, more than 57,000 Pennsylvanians are employed at over 4,200
advanced energy businesses across the Commonwealth. We should be promoting policies to further
grow this burgeoning economy and make Pennsylvania more competitive.
Free ridership for PA’s biggest energy consumers. When large customers opt out of paying for
efficiency measures, and everyone else continues to work toward a better Pennsylvania, large
customers enjoy the benefits of reduced electricity prices subsidized by others.
The least-cost energy resource being left on the table. Every ratepayer’s electricity spending goes to
a variety of resources that collectively power our homes and businesses, including generation,
transmission, distribution, and energy efficiency. For a large energy consumer, efficiency program
costs are just 2%-5% of their energy spending. Generation, transmission, and the like make up the
remaining 95-98% of spending. As Martin Kushler of ACEEE has said, “You wouldn’t let [large]
customers walk away from paying for a power plant, why should they be able to walk away from
paying for energy efficiency programs?”
Increased pollution. Fewer energy efficiency programs will mean a greater reliance upon fossil fuelfired generation, resulting in an increase in air and water pollution, at the very time when our nation is
working to curb fossil fuel-related pollutants. In fact, when EPA soon issues a Clean Power Plan rule to
cut harmful pollution in all 50 states, this bill will make Pennsylvania’s implementation of the rule even
more difficult and more expensive.