Published: January 09, 2009 10:03 pm      

State approves some energy savings proposals, others need redesign

Allegheny Power working to make deadline

CUMBERLAND — Gov. Martin O’Malley’s EmPOWER Maryland Energy Efficiency Act of 2008 continues to make progress as conceptual programs are approved for utility companies.

Allegheny Power received approval Dec. 31 from the state Public Service Commission for various programs it proposed in a portfolio of 13 energy-efficiency and conservation programs in September.

“Now there were some programs that were not approved,” said Todd Meyers, spokesman for Allegheny Power. “What they’ve asked us to do is either redesign those programs not approved or offer a new program.”

The utility has until March 31 to get back to the PSC with updated cost data, cost-effectiveness calculations, and projected energy and demand savings. They will then wait for final approval before implementing the programs.

“Right now we’re diligently working on those calculations and will hopefully file before the March 31 deadline,” Meyers said. “We’re not offering any of the programs yet because we still need a final approval.”

Approved residential programs include the Energy Star Appliance Program and the CFL Reward Program. The appliance program will provide rewards for certain appliances that meet or exceed Energy Star ratings.

“If a customer purchases an Energy Star model of a certain caliber or rating, there’s usually a difference in cost from the standard version to the version that saves the most energy,” Meyers said. “We are wanting to offer a reward, help split the difference with the price point in the models.”

Meyers adds that once in place, the energy-efficient models provide significant savings.

The CFL Reward Program will provide rewards for purchase of single and multipack compact fluorescent lamp bulbs.

The other two residential programs approved were the Heat Pump Efficiency Program and Air Conditioner Efficiency Program. These two programs will provide rewards for highly efficient heat pump and/or air conditioners fitted with programmable thermostats and installed by a certified Building Performance Institute contractor.

The customer education program, Watt Watcher Energy Efficiency Awareness and Market Transformation Campaign, was also approved. This program will provide Allegheny Power’s customers with education and information that will enable them to immediately affect energy consumption. The campaign will drive for a change in customer behavior toward efficient use of electricity.

Meyers adds as a result of this order, residential customers are going to be able to take advantage of these programs to help manage their electric bills. He said information will be sent out once the details are finalized and approved.

Meyers also notes there will be a customer surcharge from anywhere between $1 and $3 on their bills to help pay for these new programs.

“Originally it was estimated to be about $1.30 per month, but this can change because some of the plans weren’t approved and may be redesigned,” Meyers said. “However, if people avail themselves to at least one of these programs, they can save far more money than $1.30 a month.”

Meyers said there are many opportunities to save that would wash out the surcharge, including using CFL bulbs, which can save about $1 per month.

“The whole idea is if all of our 225,000 residential customers use less power, that could help needs in the future,” Meyers said. “It helps save energy now and defer costs in the future. Conservation is a very important piece of the puzzle; there is a coming crunch in the state by about 2013 or so, so it’s something we all have to be aware of and thinking about right now.”

Meyers added that this is not the end to Allegheny Power’s efforts to develop energy-efficient and conservation programs.

“We have always considered this an ongoing pipeline of programs,” he said. “We will still go back to the drawing board and design more plans for future use and approval.”

In September, the PSC filed an order for Maryland electric utility companies to submit comprehensive energy efficiency, conservation and demand reduction programs designed to reduce electricity consumption in the company’s service area.

These programs are part of O’Malley’s initiative to reduce electricity consumed by utility customers 10 percent by the end of 2015.

Contact Tess Hill at thill@times-news.com.