Program Summary

The 2012 AEP Load Management Standard Offer Programs were developed to pay incentives to energy efficiency service providers (e.g., contractors, energy service companies, retail electric providers, or customers) for load interruptions of electric consumption on short notice during peak demand periods. Incentives are based on verified demand savings that occur at AEP distribution customer's site as a result of an interruption.

To participate in the Load Management SOP, sponsoring participants undergo an application process and then enter into an Agreement with AEP. Under the Standard Agreement, the Project Sponsor agrees to deliver demand savings to AEP from an AEP distribution customer, using load that is subject to load management curtailment activities (Interruptible Load) at that customer's site. AEP will verify actual demand savings from interruptions and payment will be submitted to the Project Sponsor based on the verified savings achieved by the interruptions.

2012 Program Information - Updated 3/15/2012

AEP will begin accepting applications starting March 19, 2012 at 10:00 A.M. CST.

Key Features

Description

• Designed to reduce kW use during peak demand periods
• Performance based program offering incentive payments for peak demand savings
• It implements "Interruptible Load" curtailments

Customers

• 500 kW or greater
• Must have Interval Data Recorder meter
• Must be located on AEP Texas North Company Distribution system

How Program Works

• One(1) year program
• Scheduled Interruptions - One (1) interruption at the beginning of the Performance Period
• Unscheduled Interruptions - Project Sponsor choose to participate in either :
• Option A - Up to four (4) interruptions (4 hours) per Performance Period, or
• Option B - Up to twelve (12) interruptions (4 hours) per Performance Period.
• Option C - Up to twelve (12) interruptions (2 hours) per Performance Period.
• Option D - Up to twelve (8) interruptions (4 hours) per Performance Period.
• Option E - Up to twelve (8) interruptions (2 hours) per Performance Period.
• Program Manager notifies Project Sponsor to interrupt load with at least one (1) hour notice
• Program Manager/AEP performs "Verification Process"
• 2012 Program Budget is $189,410

For answers to your specific questions, please contact Gary Throckmorton at 325-674-7341 or by e-mail at gjthrockmorton@aep.com.