AEP TDUs Reach Agreement to Expand Load Management Program for 2012

AEP Texas Central Company and AEP Texas North Company have reached agreements to expand the amount of load in their 2012 commercial load management programs, in light of resource adequacy concerns.

Under an agreement with PUCT Staff and the Office of Public Utility Counsel, AEP Texas Central would increase its commercial load management program budget by $666,666. With this addition, $900,000 is available for incentives under the load management program. Under a similar agreement, AEP Texas North would increase its commercial load management program budget by $154,900, bringing the total amount available for incentives to $189,410.

The amount of additional megawatts which can be accommodated in the program under the expanded budget was not identified.

The AEP companies may request recovery of the new, full program costs in their respective energy efficiency cost recovery factor applications to be filed in 2013. All program costs, and any shareholder bonus, resulting from the additional commercial load management program expenditures shall be borne by the customer classes participating in the expanded program.

The AEP companies will coordinate with ERCOT to (1) maximize the use of the additional commercial load management for grid reliability purposes and (2) ensure the program is operated in a manner consistent with Commission policy deliberations in Project No. 37897, P. U. C. Proceeding Relating to Resource and Reserve Adequacy and Storage Pricing, to the extent the existing commercial load management program design permits.

Texas Industrial Energy Consumers is unopposed to the two agreements.

The dockets are 39360 and 39361.