OBF Developments in Pennsylvania as of 2/6/07

          submitted by Chris Lynch, PA Small Business Development Center               email: clynch@wharton.upenn.edu

The Pennsylvania Public Utilities Commission issued an order in
September 2006 to initiate an investigation into cost-effective and reasonable efforts energy utilities can take to help their customers conserve energy or use it more efficiently. As part of this effort, the Demand Side Response Working Group was reconvened and outlines were requested for various program ideas that could be implemented in Pennsylvania.

Based on information provided by Small Business California, the Center for Small Business and the Environment, and others, the Pennsylvania Small Business Development Centers (SBDC) submitted a proposal on January 10, 2007, for establishing on-bill financing as a mechanism to advance small business investment in energy efficiency projects.

The following week, on January 19, 2007, the PA PUC Demand Side Response Working Group held a day-long session of panel presentations by experts from around the country. The Pennsylvania SBDCs nominated Hank Ryan to speak about on-bill financing as a follow-up to the proposal submitted on January 10th; and the Working Group invited Mr. Ryan to participate
as a panelist.

Mr. Ryan's presentation demonstrated the unique needs of the small business community and the need for creative financing mechanisms to encourage small business energy efficiency. As a solution, Mr. Ryan discussed existing on-bill financing programs operating in New England, and those currently being established in California, as a targeted response to the unique needs of small business
(http://www.puc.state.pa.us/electric/pdf/dsr/DSR_Present-OnBill_Financin
g.pdf).

The PA PUC Demand Side Response Working Group will meet again on February 23, 2007 to consider the various program proposals and panel presentations.