PECO has agreed to purchase enough solar energy to power 3,000 homes – a move that comes as the utility company faces pressure from environmentalists to add more renewable energy to the mix of sources it uses to provide electricity its customers.
The addition of 25 megawatts of solar power is the largest solar procurement by an electric utility company in Pennsylvania, though there have been bigger ones by private companies.
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PECO provides service for about 1.7 million customers in Southeastern Pennsylvania. Customers who want to power their homes with renewable energy currently must use PECO's Customer Choice program to buy energy from third-party providers – but people receiving bill assistance can't participate in this program.
The new deal impacts the 77% of customers receiving default service, which allows PECO to decide the energy sources used to power their homes. PECO not only is paying for the energy but also the capacity, ensuring the 25 megawatts will be available for use at all times.
Every four years, PECO must submit its power purchasing plan to the Public Utility Commission. Its latest, submitted earlier this year, called for doubling the renewable energy credits bought from long-term contracts, but it did not add more solar power to its mix of energy sources. The company currently derives 0.5% of its energy from solar power. The updated plan covers the period of June 1, 2025 through May 31, 2029.
A number of groups weighed in on the plan, advocating for more clean power, including POWER Interfaith, Vote Solar, Physicians for Social Responsibility, Clean Air Council and PennEnvironment. They said that PECO could have saved $67 million to $89 million for customers between 2021 and 2025 had the company placed a greater emphasis on renewable energy.
"The life-threatening hurricanes that pummeled Florida and other southern states last month should make it clear that the companies that produce and supply our energy must do their part to prioritize and provide clean, renewable energy to their customers," said Flora Cardoni, deputy director of PennEnvironment, in a statement. "We know that Pennsylvanians want that, and our planet needs it."