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AEP Ohio Energy Efficiency Initiatives

GREEN BUSINESS CONFERENCE

Chuck JenningsManager, Consumer Programs

Energy Efficiency/Demand Reduction

April 14, 2010

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Overview of SB 221

• SB 221 requires 22.2% cumulative kWh reductions through energy efficiency programs by 2025 and 7.75% cumulative demand reduction by 2018.

• SB 221 also sets 25% Alternative Energy Portfolio Standard: minimum 12.5% from renewable energy and the rest from advanced energy (a portion of which can include energy efficiency).

• Financial penalties prescribed for failure to meet incremental targets on an annual basis.

• Program cost recovery through EE/PDR rider.

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SB221 SB221year incremental cumulative year incremental cumulative2009 0.3% 0.3% 2009 1.00% 1.00%2010 0.5% 0.8% 2010 0.75% 1.75%2011 0.7% 1.5% 2011 0.75% 2.50%2012 0.8% 2.3% 2012 0.75% 3.25%2013 0.9% 3.2% 2013 0.75% 4.00%2014 1.0% 4.2% 2014 0.75% 4.75%2015 1.0% 5.2% 2015 0.75% 5.50%2016 1.0% 6.2% 2016 0.75% 6.25%2017 1.0% 7.2% 2017 0.75% 7.00%2018 1.0% 8.2% 2018 0.75% 7.75%2019 2.0% 10.2% 7.75%2020 2.0% 12.2%2021 2.0% 14.2%2022 2.0% 16.2%2023 2.0% 18.2%2024 2.0% 20.2%2025 2.0% 22.2%

22.2%

energy savings demand savings

cumulative total

cumulative total

SB 221 Requirements for Efficiency

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SMART Lighting

• Immediate savings online at www.gridSMARTohio.com

• Immediate savings at checkout on CFL bulbs and light fixtures at participating retailers

• EnergyStar®

• 13-42 W, dimmable, 3-way options

• Range of 86 -197 kwh annual energy savings

Residential Programs

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Refrigerator Recycling

• For “old” second refrigerator, 10 cubic feet or larger

• Must be in working condition

• $25 reward for each

• Free pick up

• Recycling 97% components

• 1-877-545-4112 to schedule pickup

Residential Programs

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More Programs to Come Summer 2010

• Existing Home Retrofit Efficiency

• Low Income Weatherization

• New Construction

Residential Programs

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Education (K-12) Program

School-to-Home Energy Efficiency

– Addresses science standards grades 5-12– Takes learning from school to home– Seven lessons

• Intro to Energy• Insulation & Air Leaks• Heating & Cooling• Saving Water & Energy• Light bulbs & Energy• Appliances & Energy• Energy Synopsis

– Fourteen energy saving devices– Implemented by Ohio Energy Project – 180 schools, 13,500 students

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Reduce your investment payback period and

create long-term reduction in energy consumption

and costs.

•Three Programs:– Lighting– Custom– Self-Direct

• Incentives for energy savings and peak demand reduction

• Applications and guidelines found at www.gridSMARTohio.com

•Technical assistance for completing Custom and Self-Direct applications available

Business Programs

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• Set incentives for purchasing & installing efficient lighting• All business (non-residential) customers are eligible• Equipment must meet

requirements in program application

• Incentives may not exceed 50% of the total project cost

• AEP Ohio dispensesfunds based on availability

Business Lighting Program

Incentives range from $2 per CFL to $350/kW for new T8/T5 fixtures

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• Incentives for new high-efficiency equipment and industrial process improvements that reduce energy consumption and peak demand

• For retrofit and new applications• Measures must be installed for five years• All business (non-residential) customers are eligible• Equipment must meet requirements in program application• AEP Ohio dispenses funds based on availability

Incentive Level $.08/kWh + $100/kW PDR

Range of payback qualifying for incentive 1 to 7 years

Max % of total project cost 50%

Business Custom Program

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• SB 221 allows qualifying customers to submit previously completed energy efficiency and peak demand reduction projects

• Eligible customers:– Non-residential customers with energy

consumption >700,000 kWh/year from AEP Ohio; or

– A national or regional account involving multiple facilities in one or more states

• Customer responsible for costs to document energy saving projects and should have experience and staff capability to manage, implement, and verify an energy management program within their facilities

Business Self-Direct Program

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Business Self-Direct Program

• Customer commits their completed energy efficiency and peak demand reduction projects to AEP Ohio.

– Option One: Incentive payment upon approval, stays in EE/PDR rider– Option Two: Exemption from EE/PDR rider as long as NPV of calculated

incentive is greater than value of their rider obligation

• Customers must be accepted into the Self-Direct program by AEP Ohio and the Public Utility Commission of Ohio, and sign a participation agreement.

• Projects completed from January 1st, 2006 – December 31, 2008 can qualify.

• Measures must be installed for five years.• AEP Ohio dispenses funds based on availability.

Incentive Level75% of Custom or Lighting Programs

Range of payback qualifying for incentive 1 to 7 years

Max % of total project cost 50%

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Renewable Energy

• In design phase with input from stakeholders

• Technology program open to all customer classes

• Launch program in 2010 if approved

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Program Guidelines & Applications