Sep. 18--AEP-PSO's proposed three-year energy-efficiency program initially will cost $80 million in added rates if it receives state approval, but the utility estimated Thursday that customers could save $186 million overall.

American Electric Power-Public Service Company of Oklahoma filed its rate request for the long-term efficiency and demand-management projects this week with the Oklahoma Corporation Commission. The plan calls for 16 new or updated programs to save on power generation using more efficient appliances, lighting, weatherization and equipment tune-ups.

"Ultimately, the programs will provide energy-savings solutions for our customers that far outweigh the costs," AEP-PSO consumer program manager Kathy Champion said in a statement.

Monthly bills would go up an average $1.53 next year for a customer using 1,000-kilowatt hours, AEP-PSO spokesman Stan Whiteford said, adding that the monthly increase would reach $2.12 by 2012.

The Corporation Commission has 90 days from Tuesday to rule on the utility's request, commission spokesman Matt Skinner said. An administrative law judge will preside over testimony.

"The issue before the commission is, 'Will this save the consumer money?' " Skinner said, pointing out that he was not commenting specifically on AEP-PSO's proposal. "The idea is to give the consumer more control over his or her energy costs."

The customer's rate of return is the ultimate factor, Skinner added.

"Obviously, it does no good to save $3 if it

costs you $5," he said.

AEP-PSO's projection of $100 million savings after increased rates would be connected to an estimated 170 million kilowatt-hour reduction in power usage, according to the company release. Those current efficiency programs, such as Quick Start, saved more than $2.5 million over the past year.

"Our initial energy efficiency and demand response programs have been very effective in proving the benefits to our customers," Champion said. "Not only have the program participants been saving money, but all customers are benefiting from the reduced need for additional costly generation."

Oklahoma Gas & Electric Co. also filed its rate request for conservation programs this week. The plan, which would cost an added $1.40 per month, also offers rebates and incentives for weatherization, lighting, thermal efficiencies and new home construction.

Utility officials argued that spending money to boost energy efficiency is cheaper than having to build more power plants. AEP-PSO spent about $110 million just on adding new generation units two years ago.

AEP-PSO's proposed energy efficiency-demand response plan would include the Energy Star incentive for new homes. To qualify new homes must be at least 15 percent more energy-efficient than homes built to the 2004 International Residential Code.

The low-income weatherization works with Community Action agencies to help residents make improvements that reduce energy bills. That program's costs are projected at $2 million next year, with a 2,299 megawatt-hour savings for some 1,000 participants, according to the report.

For commercial customers, AEP-PSO's plan would offer the "Smart Solutions" program to incentivize businesses for improving lighting, air conditioning and insulation. A rebate also is proposed for commercial customers who only want to update their lighting equipment.

AEP-PSO provides electricity for most of Tulsa and about 535,000 customers statewide. The Corporation Commission approved $81.4 million in annual rate increases for the company earlier this year, much of that to cover previous infrastructure investments.

Rod Walton 581-8457 rod.walton@tulsaworld.com

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