PA House Bill 2200 – ACT 129

Incentives for Energy Efficient
Lighting Systems and Electric Motors

READING ELECTRIC, a leading supplier of electro-mechanical equipment and repair services for over 50 years, provides technical information to the region’s Industrial and Commercial Community. This Bulletin provides information on the recently approved “ACT 129” as it relates to incentives for energy efficient lighting systems, Premium Efficiency Motors, and Variable Frequency Drives.


Act 129, the result of House Bill 2200, was recently signed into law to encourage utility companies to reduce energy consumption and peak demand by providing energy efficiency and conservation tools and incentives to their customers – Industrial, Commercial, and Municipal. The Act includes measures to institute energy efficiency and demand-side response programs, but most importantly, the law requires utility companies to reduce overall energy consumption for electricity by 1 percent by 2011 and by 3 percent by 2013. Demand for electricity during peak hours must be reduced by 4.5 percent by 2013. The PPL rate cap expired Dec 31, 2009. Met Ed's rate cap expires Dec 31, 2010.

ACT 129 includes rebates for the following equipment:

Project Description                                             Program Availability

1) Energy Efficient Lights & Controls                      December, 2009
2) Premium Efficiency Electric Motors                    1st Quarter 2010
3) Variable Frequency Drives                                1st Quarter 2010
4) Incentives are available for equipment such as:
     a. HVAC, Compressors, Refrigeration Equipment, etc

To take advantage of these Programs which can provide for grants up to 45% depending on the type of equipment purchased, it is necessary to expeditiously complete the Requirements of Application. Briefly, these steps are:

    1) Complete Application Worksheets
    2) Provide Manufacturer’s Cut Sheets of Equipment to be purchased
    3) Turn-in Proof of Purchase once Installation is complete

To help ensure that maximum advantage is taken of ACT 129 incentives, obtaining expert assistance in completing the ACT 129 Applications is highly recommended. These Programs are expected to be in effect until 2013. There are additional Programs on the horizon for larger Projects, but no details are available at this time.

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