Public Utilities Commission PUCO approves First Energy plan for energy efficiency

PUCO approves First Energy plan for energy efficiency

COLUMBUS, OHIO (March 23, 2011) – Corrected Copy  – The Public Utilities Commission of Ohio (PUCO) today approved FirstEnergy’s three-year energy efficiency and peak demand reduction portfolio plan. FirstEnergy designed the plan to reduce electric consumption among customers and meet annual energy efficiency benchmarks established for 2010 to 2012.

“The Commission approved FirstEnergy’s plan on the grounds that the projected savings achieved through conservation will exceed program costs,” stated PUCO Chairman Todd A. Snitchler. “The plan incorporates input from a wide range of stakeholders and allows FirstEnergy to proceed with its statutory obligations under Ohio’s energy law.”

Senate Bill 221, passed by the General Assembly in 2008, requires Ohio’s electric utilities to reduce energy demand by 22.2 percent by the year 2025. Utilities must develop portfolio plans and meet annual benchmarks to measure their progress.

FirstEnergy’s portfolio plan includes a fundamentally redesigned version of the compact fluorescent light bulb (CFL) program suspended by the PUCO in 2009. The plan also offers incentives to customers who take steps toward increasing energy efficiency. The following programs are among those included in the plan:

• Appliance turn-in program – Offers residential customers a monetary incentive and free pick up and disposal service for second refrigerators, freezers and room air conditioners. The incentive for this program is set at $50 initially, with a reduction to $35 six months after the launch of the program.
• Community Connections – Provides weatherization measures, energy efficient solutions and energy education to low-income customers.
• Comprehensive Residential Retrofit Program – Offers residential customers a comprehensive home energy audit for a discounted fee of $100. Customers who implement eligible energy savings measures as a result of the audit can receive rebates.
• Direct Load Control Program – Offers eligible residential customers a programmable thermostat that allows the utility to curtail air conditioning usage by “setting back” the thermostat by four degrees for up to four hours during a critical peak day. Customers have the ability to override the thermostat.
• Efficient New Homes Program – Provides rebates to local builders for achieving energy efficiency targets in new residential construction.
• Energy Efficient Products Program– Provides rebates to consumers and financial incentives and support to retailers that sell energy efficient products including ENERGY STAR® appliances and high efficiency lighting.

Commercial and industrial customers can take advantage of rebates on the purchase of efficient lighting and motors and incentives for energy efficient construction. Eligible commercial and industrial customers who have achieved energy efficiency savings on their own may apply with the PUCO to commit those energy savings to FirstEnergy’s annual benchmarks.

Under the redesigned CFL program, residential and small business customers can request that up to six high-efficiency bulbs be delivered to their home or business. FirstEnergy will also distribute CFLs through a variety of other channels, including its online store and local agencies that assist low-income customers. Area retailers such as Home Depot and Lowes will offer CFLs for sale at a discounted price of no more than 50 cents per bulb. The 23-watt ENERGY STAR^® certified bulbs are designed to replace 100-watt incandescent bulbs in non-dimmable fixtures.

Participation in the CFL program is completely voluntary. However, the use of CFLs is widely recognized as one of the most cost-effective ways for customers to reduce their demand for electricity. By using less electricity, customers will save on their electric bills and reduce the overall demand for electricity, delaying the significant costs of constructing new power plants. An average residential customer who installs six CFLs can save an estimated $49.25 annually. 

FirstEnergy will implement the CFL program and other efficiency programs immediately. Customers can request CFLs by calling (888) 846-2235. Participating retailers will begin selling bulbs in April or May 2011.

FirstEnergy residential customers using an average of 750 kWh of electricity each month will pay approximately $1.50 per month over three years to fund the residential portfolio programs and associated lost distribution revenues. This amount is similar to energy efficiency program costs assessed by Ohio’s other regulated electric utilities. Of the total portfolio cost, approximately 30 cents per month will fund the CFL program.

In 2009, the PUCO halted implementation of FirstEnergy’s original CFL program and directed the utility to file a revised CFL program. In response, FirstEnergy submitted an application for a revised CFL plan which is included in the Company’s comprehensive three year energy efficiency portfolio. The utility gathered input from a collaborative working group comprised of the PUCO staff, the Office of the Ohio Consumers’ Counsel, Ohio Partners for Affordable Energy, and Industrial Energy Users-Ohio among others.

The Commission will hold additional proceedings to consider the government street lighting program and the shared savings mechanism proposed by FirstEnergy, as well as the residential energy efficient products program as it relates to water heaters for customers who have access to natural gas service. The Commission will consider the transmission and distribution programs proposed by FirstEnergy in case number 09-951-EL-EEC, et al.

Additional information about FirstEnergy’s portfolio plan is available at www.PUCO.ohio.gov. To obtain a copy of today’s Commission opinion and order, click on the link to the Docketing Information System and enter case number 09-1947-EL-POR.

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09-1947-EL-POR, et al.

 

The Public Utilities Commission of Ohio (PUCO) is the sole agency charged with regulating public utility service. The role of the PUCO is to assure all residential, business, and industrial consumers have access to adequate, safe, and reliable utility services at fair prices while facilitating an environment that provides competitive choices. Consumers with utility-related questions or concerns can call the PUCO hotline at (800) 686-PUCO (7826) and speak with a representative.

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