Allegheny Power & EmPOWER Maryland

The State of Maryland will reduce energy consumption by 15 percent by 2015 under Governor Martin O’Malley’s “EmPOWER Maryland” initiative. The Maryland Public Service Commission (PSC) in September 2007 directed Allegheny Power and all other Maryland electric utilities to develop and file comprehensive energy efficiency, conservation and demand reduction programs designed to reduce power consumption for each company’s service territory by 2015.

Allegheny Power on Aug. 29, 2008 proposed a portfolio of energy-efficiency and conservation programs for the residential and commercial and industrial sectors and a general awareness program to the PSC for its consideration and approval. The PSC on Dec. 31, 2008 approved in concept the design of many of the programs, and ordered the redesign of several others. Included are programs which target major energy consuming systems, such as heating, air conditioning, major appliances and lighting. The programs are designed to reach as many Allegheny customers as possible.

Customers could save hundreds or even thousands of dollars on their electric bills, depending on which programs they choose to participate in. For instance, customers who purchase an energy efficient heat pump through the Watt Watcher Residential Heat Pump Efficiency Program could save about $3,700 over the lifetime of the unit.

Costs for these programs would be recovered through surcharges tailored to each customer rate schedule.

Gov. Martin O’Malley’s EmPOWER Maryland Energy Efficiency Act of 2008 requires electric utilities to target a 10 percent reduction in per capita energy usage (Maryland Energy Administration to achieve an additional 5 percent) and a 15 percent reduction in per capita peak demand by 2015. Allegheny Power will continue to develop a “pipeline of programs” to help meet these targets.

These programs can help make Maryland a cleaner and greener place to live. A kilowatt of energy conserved is a kilowatt that is not paid for; a kilowatt with no environmental footprint; and a kilowatt that can help maintain a reliable supply. These energy efficiency and conservation programs will also help Allegheny’s Maryland residential and business customers manage their electric bills.

Before Allegheny offers any of these programs to its Maryland customers, it must submit to the Commission by March 31, 2009 updated cost data, calculations and additional information to gain final approval.