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The Pennsylvania Public Utility Commission (PUC) has approved natural gas and electric utility PECO's proposal to begin to purchase renewable energy credits (RECs) in fulfillment of Pennsylvania's Alternative Energy Portfolio Standards (AEPS) legislation.

The AEPS legislation requires that, by 2011, 3.5% of the energy consumed by PECO customers is provided through renewable resources, such as wind, methane gas and biomass.

The legislation further requires a .05% annual increase in renewable requirements, ensuring that by 2020, renewable resources will make up a total of 8% of the energy consumed. By 2020, the company estimates that as much as 3.3 million MWh of renewable resources could be needed to meet the requirement.

PECO will meet the initial requirement by purchasing the equivalent of 240 MW of RECs for five years.



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