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Combined Heat and Power Partnership

Pennsylvania Alternative Energy Portfolio Standard

Date Last Updated11/20/2012
Policy TypePortfolio Standard
State/FederalPA
Policy Administrator/Contact OfficePennsylvania Public Utility Commission
Policy Initiation Date2/28/2005
Policy SummaryPennsylvania's Alternative Energy Portfolio Standard (AEPS) includes CHP as eligible as a Tier II resource. The AEPS applies to load-serving energy companies and has two categories of technologies with separate target amounts, Tier I and Tier II. Both new and existing renewables are eligible as Tier I resources. Tier II resources include demand-side management and distributed generation systems, including CHP.

The AEPS requires each electric distribution company and electric generation supplier to provide 18% of their electricity from alternative sources by compliance year 2020-2021. In compliance year 2020-2021, 8% of electricity must come from Tier 1 sources and 10% must come from Tier II sources.

Compliance is based on accumulating alternative energy credits (AECs), and banking of excess credits is allowed for up to 2 years. CHP and other eligible technologies are credited at a conversion of 1 MWh = 1 AEC with no credit for the thermal output of the CHP system.
CHP Eligibility RequirementsRenewably-fueled CHP systems are eligible as a Tier I resource and fossil-fueled CHP systems are eligible as a Tier II resource, with only electric output receiving credit.
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
Resource Website(s)

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