Nov. 2, 2009 (Business Wire) -- Allegheny Power, the electric distribution business of Allegheny Energy, Inc. (NYSE: AYE), announced that the Pennsylvania Public Utility Commission has approved a portfolio of energy efficiency and conservation plans that will help customers save energy and meet the goals of Pennsylvania’s Act 129.

In response to Pennsylvania’s Act 129, which requires electric distribution companies to provide programs for its customers to reduce electricity consumption, Allegheny proposed and received approval for energy efficiency programs for residential, commercial and industrial customers. Customers will be receiving specific information on these new Watt Watchers programs in the coming months. These programs are designed to help consumers use electricity efficiently, curb consumption and reduce overall demand for electricity.

“Allegheny is moving aggressively to introduce these new energy efficiency programs, which offer incentives for homes and businesses to save energy and money,” stated Rodney Dickens, President of Allegheny Power. “We have designed a portfolio of programs that will provide meaningful reductions in energy usage and with the implementation of smart meters, we will offer customers new rate options and other tools for customers to better manage their electric bills.”

The new programs approved by the Commission will include:

• Rebates for customers that purchase high efficiency appliances, lighting and heating and cooling systems;
• Residential home audits and rebates toward implementing audit recommendations;
• Home audit, weatherization and air conditioner replacement programs for low-income customers;
• New rate options that will provide financial incentives for customers to lower their demand for electricity or shift their usage to lower-priced times;
• Incentives for customers who install in-home devices that reduce electric usage when demand is highest; and
• Various programs for commercial, industrial, government and non-profit customers to increase energy efficiency and conservation.

Act 129 calls for the programs to be funded through customer rates. The typical residential customer using 1,000 kilowatt-hours a month will see an increase of about $2 per month. Customers who take advantage of one or more of the new programs have the opportunity to offset that amount and save much more over the years. Programs enabled by smart meters will be available in 2011.