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A change of power
The Greensburg-based company expects to introduce "smart meter" technology to the area sometime this year,.
Smart meter technology is a two-way communication system between the home and the power company that lets participating customers receive information on a thermostat-like device in the home and track fluctuating prices for electricity so they can adjust their energy use, such as running a washer or dishwasher at times when prices are lower. The system doesn't require an Internet connection.
But the meter is only one of a number of initiatives the company is offering to help its customers reduce the cost of their electricity consumption, which will rise when the state lifts the rate caps on electricity next January.
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The suggestions are being made as a result of the state's Act 129, which was signed into law in 2008. The legislation requires utilities across the state to develop cost-effective plans to reduce electricity consumption by 1 percent by 2011, and by 3 percent by 2013. The act also requires utilities to achieve a 4.5 percent reduction in peak demand by 2013.
Last year, the Pennsylvania Public Utility Commission established an energy efficiency and conservation program to address the mandates specified by Act 129.
In late October, it approved Allegheny Power's portfolio of energy efficiency, conservation and demand response programs designed to lower electric consumption and demand. The company's programs are designed to target each of its customer segments: residential, commercial and industrial.
Act 129 calls for the various programs to be funded through customer rates. The typical residential customer using 1,000 kilowatt-hours a month will see a $2.22 per month increase. The company said customers who take advantage of one or more of the new programs have the opportunity to offset that amount and save more over the years.
During a presentation to the Washington County Manufacturers Association last month, J.P. Tambourine, AP's manager of customer support, noted that its customers won't experience the "rate shock" that PPL customers did when that company lifted rate caps this year, pushing a 30 percent rate increase all at once.
Instead, Tambourine said, Allegheny Power received permission from the PUC to gradually increase rates beginning in 2006 with a 5 percent jump; followed by increases of 4.6 percent in 2007; 4.8 percent in 2008; 11 percent last year; and a 3 percent bump this year. He said the company is currently conducting power auctions that will determine how much rates will increase next year, but added that any increases should be modest.
Allegheny Power had originally planned to introduce its smart meters to about 93,000 of its 700,000 customer base this year, but implementation has been stalled until an administrative law judge reviews the company's plan.
Opponents of the plan supported the postponement, pointing to the company's plan to surcharge customers $5.86 per month at the introduction of the meters, but climb to more than $15 per month in a couple of years.
Tambourine said last month that Allegheny Power has asked the PUC for time to provide more information about the meters to the commission, adding that it doesn't expect a decision on when it can begin marketing the meters until near the end of the first quarter.
He acknowledged that the cost of the meters is a concern.
"It's a very expensive undertaking to roll out smart meters," he said, adding that the company is striving to keep costs at a minimum.
Tambourine also suggested that Allegheny Power customers also consider choosing an alternate electric generation supplier as another way of reducing energy costs.
"Allegheny Power is a wire company," he said, explaining that when people fail to designate a generation company, Allegheny Power uses Allegheny Energy as the provider of last resort, which may not be the cheapest source of power.
He said customers need to refer to the "Price to Compare" listed on the front of their bills and use this price when shopping for an alternate supplier.
Tambourine said the company plans to conduct consumer education programs about shopping for rates in the second half of this year.
Additional information is available by going to the Allegheny Power Web site at www.alleghenypower.com and clicking on the "Watt Watchers" logo, or by calling 1-877-928-8928.
Ahead of the Curve : 2/8/2010
Evidently I'm ahead of the curve. My meter has moved in three days!
AP should invest in right-of-way powerline maintenane : 2/8/2010
With all this money saved/made with deregulation and meter improvements; hope they invest a little on their power line right-of-way tree maintenance
Bologny : 2/8/2010
The choice we will have is no choice because energy companies are a monopoly. Regardless of deregulation (thank you republicans and blue dog dems) we will be socked with whatever the energy companies dish out and our gov't will allow it because ultimately that money comes back to them through lobbyist.
