Allegheny Power’sEnergy Efficiency &

Conservation Programs

Central PA ASHRAE ChapterHarrisburg

April 20, 2010

• Program background

• Key dates and targets

• Basic program details

• Review PA PUC approved programs

Presentation Objectives

• Signed into law on October 15, 2008:− Created state-wide Energy Efficiency and

Conservation Program− Applies to all EDC’s with > 100,000 customers

• Requires EDC’s to reduce electric consumption by:− 1% by May 31, 2011− 3% by May 31, 2013

• Requires EDC’s to reduce peak demand by:− 4.5% by May 31, 2013− Annual system peak demand in the 100 hours of

highest demand

PA Act 129: Background Information

• Smart Meter Implementation Plan filed August 14, 2009:− Smart meter technology is furnished:

Upon request from a customer that agrees to pay cost of smart meter

In new building construction In accordance w/ depreciation schedule not to exceed 15 years

• By January 1, 2011 (for AP) … Submit to PAPUC one or more Proposed TOU Rates

PA Act 129: Background information (cont)

• Offset expected electricity price increases forthcoming

• In PA, generation rates that have been capped since 1997 expire 1/1/2011

• Customer Expectations

• Customers want more control over electric bills

• Decrease need for additional generation and transmission lines

• TrAIL/ PATH projects proposed by Allegheny Power

Purpose of EE & C programs

Key Dates and Targets

Jul. 1, 2009 Energy Efficiency & Conservation / Demand Response (EE&C/DR) Plans Filing

Aug. 14, 2009 Filing Date for Smart Meter Technology Procurement and Installation Plan (SMIP)

Oct. 23, 2009 Filing Approved (In Part)

Jan. 1, 2011 Filing Date for TOU Rates and RTP Plans

May 31, 2011 1% Reduction in Energy Consumption

May 31, 2013 3% Reduction in Energy Consumption

May 31, 2013 4.5% Reduction in Demand

209,387 MWH

628,160 MWH

157 MW

Completed

Completed

Completed

• EE & C Plan must be cost-effective (benefits greater than costs)

• Programs must reach all customer classes ( residential, commercial, industrial & institutional)

• !0% of the energy reductions must be from institutions (gov’t, schools, universities, & non-profits)

• Program costs must be allocated to customer classes who incur the benefit

• Allegheny Power is subject to a penalty of $1million to $20 million for not meeting targets

PA Act 129: Basic Program Details

• The cost of the overall four year plan is capped at 2% of 2006 utility’s revenues….$94.6 million for Allegheny Power

• The cost of the Plan will be recovered from customers. Approximate cost is:

- $2.22 per 1000 kwhs for residential customers- $1.12 per 1000 kwhs for small-sized commercial

business- $0.71 per 1000 kwhs for medium-sized commercial

business • Full website launch of all programs by April 1st. • Web-site will contain all details and applications for

incentives

PA Act 129: Basic Program Details (cont)

Residential Programs

Energy Star Appliances Qualifications Rebate Amount Limit per Calendar Year

Super Efficient Dishwasher Energy Star $25 1 per Household

Super Efficient Clothes Washer Energy Star - 200 kWh or less /year $75 1 per Household

Electric Clothes Dryer With Moisture Sensor $25 1 per Household

CFLs All Qualify

$1.50 per single pack or $3 per multi pack Total rebate limit up to $25.00

Room Air Conditioner Energy Star $25 3 per Household

Refrigerator with Recycling* Energy Star - 10 to 30 Cubic Feet $50 1 per Household

Freezer With Recycling* Energy Star - 10 to 30 Cubic Feet $35 1 per Household

Central Air Conditioner

Energy Star - SEER 14.5 and above w/Programable Thermostat, must be installed by Licensed HVAC Contractor

$100 with SEER 14.5 $150 with SEER 15 $200 with SEER 16 or above 1 per Household

Heat Pump

Energy Star - SEER 14.5 and above w/Programable Thermostat, must be installed by Licensed HVAC Contractor

$100 with SEER 14.5 $150 with SEER 15 $200 with SEER 16 or above 1 per Household

Residential Programs (cont)

Recycling Programs  Qualifications  Rebate amount  limit per calendar year

Room Air ConditionerWorking unit (New purchase not required) $25 3 per Household

RefrigeratorWorking unit (New purchase not required) $35 1 per Household

Freezer Working unit (New purchase not required) $35 1 per Household

Home Performance Programs      

On-Line All Homes Qualify Free 1 per Household

Check-up All Homes Qualify $50 1 per Household

Comprehensive All Homes Qualify $50 1 per Household

Low-Income 175% of Poverty Level N/A 1 per Household

C & I Programs

Lighting Qualifications Rebate Amount Limits

T5 Retrofit Only  $   25

T8 Retrofit Only (2x4 fixtures)  $ 14

LED Exit Signs Retrofit Only  $   15

Occupancy Sensors Wall Plate $   25

HVAC    

Unitary A/C 15 SEER or better, Retrofit Only $ 35/ton

Unitary Heat Pump 15 SEER or better, Retrofit Only $ 75/ton

Motor Drives    

Variable Frequency Drives

- Thru Participating Vendors - 25-200 Horsepower - 6 pulse - In-line reactor - For Pumps, Fans, or other variable loads - Motor operating hours =>2500/year

50% of equipment cost recovery

=>50HP or $3,000 must be pre-approved by AP

Custom      

Custom Technology Per Allegheny Power Pre-Approval, 1 - 2.5 mWh's per year minimum/maximum customer size or PMs approval

Up to 25% of project cost

$100,000 Per Project not to exceed 25% of total project cost. Total Annual Program Cap is $1,000,000

Custom Application Per Allegheny Power Pre-Approval, 2.5 mWh's per year minimum customer size or PMs approval

Up to $10,000 per Audit, Up to 50% of project cost

$500,000 Per Project not to exceed 50% of total project cost. Total Annual Program Cap is $1,500,000

Institutional - NonprofitLighting Qualifications Rebate Amount Limits

T5 Retrofit Only  $   25

T8 Retrofit Only (2x4 fixtures)  $ 25

LED Exit Signs Retrofit Only, Equipment Only 100 % of cost

LED Traffic Signals Retrofit Only $   30.67 Per bulb replaced

Occupancy Sensors Wall Plate $   25

CFLs Retrofit Only, Equipment Only 100 % of cost  

HVAC    

Unitary A/C 15 SEER or better, Retrofit Only $ 35/ton

Unitary Heat Pump 15 SEER or better, Retrofit Only $ 75/ton

Motor Drives    

Variable Frequency Drives - Thru Participating Vendors - 25-200 Horsepower - 6 pulse - In-line reactor - For Pumps, Fans, or other variable loads - Motor operating hours =>3600/year

50% of equipment cost recovery

=>50HP or $3,000 must be pre-approved by AP

Custom      

Custom Technology Per Allegheny Power Pre-Approval, 1 - 2.5 mWh's per year minimum/maximum customer size or PMs approval

Up to 25% of project cost

$100,000 Per Project not to exceed 25% of total project cost. Total Annual Program Cap is $1,000,000

Custom Application Per Allegheny Power Pre-Approval, 2.5 mWh's per year minimum customer size or PMs approval

Up to $10,000 per Audit, Up to 50% of project cost

$500,000 Per Project not to exceed 50% of total project cost. Total Annual Program Cap is $1,500,000

.Please contact us:

AskPAAct129@AlleghenyPower.com

See Allegheny’s Act 129 website at: www.alleghenypower.com and click on the Watt Watchers logo. Select PA and Act 129 link.