PSC to decide suitability of FirstEnergy energy efficiency plan

The energy efficiency and conservation programs proposed by Monongahela Power and Potomac Edison could be stronger, some argued Dec. 1–2 at an evidentiary hearing of the Public Service Commission of West Virginia.

A Phase I Energy Efficiency and Conservation Plan proposed by the FirstEnergy West Virginia operating companies has two parts: a residential low-income program and a high-efficiency lighting program for commercial, government and industrial customers.

The utility filed the plan in March for approval by the PSC, as mandated in 2010 stipulations in a rate case and in the commission order approving the merger between Allegheny Energy and FirstEnergy.

The Phase I energy efficiency and conservation plan specifically aims to reduce total system demand by 0.5 percent from the 2009 level of about 13,300 gigawatt-hours and to reduce system peak demand by 0.5 percent from the 2009 level of 2,723 megawatts.

Reductions would come through light bulb, faucet aerator and shower head replacements in low-income homes — those within 200 percent of the federal poverty level — along with refrigerator replacements for those that qualify and partial energy audits. At the commercial and industrial level, the program proposes high-efficiency lighting.

The energy reduction target would be reached in five years.

Parties to the case testified during a span of two days. Intervenors included the commission's Consumer Advocate Division, the West Virginia Energy Users Group of large industrial electricity users and the West Virginia Citizen Action Group.

WVCAG wants to see a stronger energy reduction plan that would include building shell measures such as weather stripping and a blower door or other leak test.

"The proposed efficiency target is far weaker than FirstEnergy efficiency goals in other states, which include a 1 percent savings in two years and 0.8 percent savings in two years in Pennsylvania and Ohio, respectively," said Mike Harman, a spokesperson for Energy Efficient West Virginia, of which WVCAG is a lead member, after the hearing.

Intervenors also noted that energy efficiency measures offered by AEP companies Appalachian Power Co. and Wheeling Power Co. are stronger.

Edward C. Miller, manager of development and compliance for FirstEnergy, said the company designed its programs to minimize cost impacts. The components were chosen to complement the Governor's Office of Economic Opportunity's low-income weatherization program, he said, although he conceded that that program is known to have a large backlog.

The five-year time frame was then calculated based on the utility's experience with participation in such programs, Miller said.

"Wouldn't you normally set out to design a plan that was the most effective, rather than meeting the stipulation?" asked PSC Chairman Michael Albert, referencing the 2010 cases that mandated the plan.