11/13/2009
AEP Ohio files plan with PUCO to help customers reduce energy usage in homes and businesses

Gahanna, Ohio (Nov. 13, 2009) -- AEP Ohio yesterday filed a plan with the Public Utilities Commission of Ohio (PUCO) to implement energy efficiency and demand reduction programs that could save consumers and businesses $631 million in reduced bills over the life of the programs, result in 3,000 new jobs through 2011 and reduce power plant emissions. The plan is part of AEP Ohio’s response to Ohio Sub. S.B. 221, which requires investor-owned electric utilities to create programs to help customers conserve and reduce demand for electricity.

In the application filed yesterday, the Company seeks recovery of projected program costs totaling $161.9 million over the period 2009-2011 through an energy efficiency rider on customers’ bills. Upon implementation of the proposed cost recovery, residential customers using 1,000 kWh of electricity per month would see a monthly rate increase of $2.24 (for Columbus Southern Power customers) or $2.30 (for Ohio Power customers). The Company proposes to implement the rider effective beginning with the first billing cycle of January 2010 through the last billing cycle of Dec. 2011.

The company also filed a settlement agreement in which nine organizations representing all customer classes, including low-income customers, manufacturing, healthcare and various environmental and other interest groups indicated their support for the plan. In addition, the company has been working with a collaborative of interested stakeholders for over a year in the planning, development and implementation of this Energy Efficiency Portfolio Plan.

“AEP Ohio has implemented six programs with more planned,” said Jon Williams, AEP Ohio’s manager of energy efficiency and peak demand response programs. “These programs have broad support and meet or exceed the requirements of S.B. 221. In addition, we are confident that they will help customers reduce energy usage and their monthly bills.”

If customers fully embrace the voluntary programs, energy savings over the life of the programs could total more than $631 million and reduce demand for electricity by 201 megawatts during the period 2009-2011, enough energy to power 70,000 homes. In addition, the Company projects the plan will result in 3,000 jobs. The plan also projects reduced power plant emissions cumulatively through 2011 by the following amounts: NOx emissions by 1,888 tons, SO2 emissions by 9,303 tons and CO2 emissions by 820,590 tons.

“Energy efficiency programs represent the least expensive alternative to dealing with the issue of long-term energy supplies,” Williams said. “Customers who choose to participate in the programs will help to keep electricity rates low and delay the need to build new power generation facilities.”

AEP Ohio’s energy efficiency plan will cost about $16  per megawatt hour (MWh), compared to $80/MWh to build a natural gas combined cycle generating plant and up to $140/MWh to build a coal-fired plant, both with carbon capture capability.

The energy efficiency and demand reduction programs initiated by AEP Ohio include consumer programs for energy efficiency education, appliance recycling and energy efficient lighting, and business programs offering lighting incentives and custom project incentives.  A business program offering customers a prescribed process to commit their already completed energy efficiency and peak demand reduction resources has also been launched.

In addition to the plan filed with the PUCO, the Company has also completed two pilot programs focused on low-income customers utilizing Partnership With Ohio (PWO) funds. Both pilot programs offered energy efficiency kits consisting of a variety of energy saving measures designed for self installation and to help educate customers on ways to save energy. The PWO comprises several programs to help low-income residents of the Company’s Ohio service territory. It is funded with $5 million in AEP shareholder income annually during the period 2009-2011.  Other PWO programs are under development.

AEP Ohio provides electricity to nearly 1.5 million customers of major AEP subsidiaries Columbus Southern Power Company and Ohio Power Company in Ohio, and Wheeling Power Company in the northern panhandle of West Virginia. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP’s headquarters are in Columbus, Ohio.

NEWS MEDIA CONTACTS:

Terri Flora
866-641-1151 or 614-883-7999

Jeff Rennie
866-394-2860

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