Measuring and verifying savings

Measurement and verification (M&V) activities are often necessary to determine the actual demand and energy savings produced by a measure after it has been installed.

Project Sponsors are responsible for planning and conducting all the M&V activities associated with their projects. As part of the Final Application, Project Sponsors are required to submit an M&V plan that shows how they intend to verify their projects' savings. AEP presents general guidelines for developing an M&V plan in the Measurement & Verification section of this site. The complexity of these specific M&V procedures and length of time it takes to complete them varies depending on the measures involved.

When the M&V period is complete, the Project Sponsor must submit a Savings Report, which documents the measured demand and energy savings.

Once approved, the Savings Report forms the basis for the Project Sponsor's performance payment. It takes about 30 working days for AEP to approve the Savings Report.