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In a response filed Tuesday with the Virginia State Corporation Commission (SCC), Appalachian Power, a subsidiary of American Electric Power, agreed that programs can be put into place that could reduce energy consumption in the commonwealth.

The filing was required of the state's largest electric utilities as part of legislation adopted by the 2009 General Assembly, in an effort to determine the best ways to develop energy efficiency or demand reduction programs to slow the growth of energy consumption in Virginia.

An SCC report on direction and development of efficiency programs is scheduled to be delivered to the governor and legislature later this year, according to a news release from APCo.

The report will address the development of public policy goals or targets for utility-based "demand side management" (DSM) programs consisting of both energy efficiency and demand--or peak reduction--programs.

Dana Waldo, Appalachian Power president and chief operating officer, said, "Our research shows that DSM programs can be implemented in Virginia and achieve a range of results. The effects of the programs must be balanced and practical for the company and our customers.

"Changing technologies and a myriad of state and federal standards mean we must thoughtfully review all energy efficiency efforts to make sure they are cost-effective and produce actual energy reductions," Waldo said. "These efforts must not be allowed to jeopardize reliability of service."

Following a study conducted by an outside consultant, Appalachian concluded that within an initial five-year period it is practical for the company to achieve a savings of about 2% of its 2008 customers' energy consumption and approximately 5% of 2008 peak load. Costs to achieve that level would be about $80 million to $100 million for direct programs and administrative costs during this period.

Appalachian noted that in order to achieve levels of savings higher than the two and five percent it recommends, customers would have to bear more risks and pay higher costs over a longer period of time.

In its filing, the company supports a DSM plan for the state's electric utilities "that is achievable, cost-effective and realistic," the news release states. "It believes that these and other guiding principles for assessing and developing programs can be applied to all electric utilities in the state, but that specific programs, strategies and goals must be assessed individually."

Appalachian also noted that it undertook an independent market-based study in order to determine the appropriateness of implementing its own DSM program for Virginia customers. In its filing, the company said the development of a precise portfolio of available programs and measures for its customers would be based upon further clarification from the SCC.

"Appalachian Power is a long-time supporter of wise energy use and management by consumers," the news release states. "A year ago it established a consumer outreach effort and website that explains and provides energy efficiency tips and assistance.

"Watt, Why and How Information" is available at www.wattwhyandhow.com.

Most people use more electricity to cool or heat their homes and businesses during summer or winter than they do at other times of the year.

Higher electric consumption and the associated higher bills can sometimes throw a family budget out of whack. Customers can more easily manage their budgets by signing up for Appalachian Power's average monthly payment (AMP) plan.

The AMP option uses a monthly payment amount based on a rolling 12-month average. The monthly payment amount fluctuates, increasing and decreasing as older bills drop out of the average and new bills are included.

Mixing higher bill amounts from summer or winter with lower bill amounts from fall and spring produces an average cost. AMP allows customers to know an approximate bill amount each month, and with no highs or lows, it especially benefits customers on fixed incomes.

For answers to questions about AMP or any other of a host of payment options, contact Appalachian Power's Customers Solutions Center anytime at 1-800-956-4237 (in Virginia) or visit www.appalachianpower.com.


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	APCo agrees to programs to reduce energy consumption In a response filed Tuesday with the Virginia State Corporation Commission (SCC), Appalachian Power, a subsidiary of American Electric Power, agreed that programs can be put into place that could reduce energy consumption in the commonwealth. The filing was required of the state's largest electric utilities as part of legislation adopted by the 2009 General Assembly, in an effort to determine the best ways to develop energy efficiency or demand reduction programs to slow the growth of energy consumption in Virginia. An SCC report on direction and development of efficiency programs is scheduled to be delivered to the governor and legislature later this year, according to a news release from APCo. The report will address the development of public policy goals or targets for utility-based "demand side management" (DSM) programs consisting of both energy efficiency and demand--or peak reduction--programs. Dana Waldo, Appalachian Power president and chief operating officer, said, "Our research shows that DSM programs can be implemented in Virginia and achieve a range of results. The effects of the programs must be balanced and practical for the company and our customers. "Changing technologies and a myriad of state and federal standards mean we must thoughtfully review all energy efficiency efforts to make sure they are cost-effective and produce actual energy reductions," Waldo said. "These efforts must not be allowed to jeopardize reliability of service." Following a study conducted by an outside consultant, Appalachian concluded that within an initial five-year period it is practical for the company to achieve a savings of about 2% of its 2008 customers' energy consumption and approximately 5% of 2008 peak load. Costs to achieve that level would be about $80 million to $100 million for direct programs and administrative costs during this period. Appalachian noted that in order to achieve levels of savings higher than the two and five percent it recommends, customers would have to bear more risks and pay higher costs over a longer period of time. In its filing, the company supports a DSM plan for the state's electric utilities "that is achievable, cost-effective and realistic," the news release states. "It believes that these and other guiding principles for assessing and developing programs can be applied to all electric utilities in the state, but that specific programs, strategies and goals must be assessed individually." Appalachian also noted that it undertook an independent market-based study in order to determine the appropriateness of implementing its own DSM program for Virginia customers. In its filing, the company said the development of a precise portfolio of available programs and measures for its customers would be based upon further clarification from the SCC. "Appalachian Power is a long-time supporter of wise energy use and management by consumers," the news release states. "A year ago it established a consumer outreach effort and website that explains and provides energy efficiency tips and assistance. "Watt, Why and How Information" is available at www.wattwhyandhow.com. APCo plan available Most people use more electricity to cool or heat their homes and businesses during summer or winter than they do at other times of the year. Higher electric consumption and the associated higher bills can sometimes throw a family budget out of whack. Customers can more easily manage their budgets by signing up for Appalachian Power's average monthly payment (AMP) plan. The AMP option uses a monthly payment amount based on a rolling 12-month average. The monthly payment amount fluctuates, increasing and decreasing as older bills drop out of the average and new bills are included. Mixing higher bill amounts from summer or winter with lower bill amounts from fall and spring produces an average cost. AMP allows customers to know an approximate bill amount each month, and with no highs or lows, it especially benefits customers on fixed incomes. For answers to questions about AMP or any other of a host of payment options, contact Appalachian Power's Customers Solutions Center anytime at 1-800-956-4237 (in Virginia) or visit www.appalachianpower.com.