Combining traditional energy efficiency programs with new technologies


Dennis Wraase,
Chairman of the Board,
President & CEO,
Pepco Holdings, Inc.
Salisbury, MD, U.S.A. — (METERING.COM) — March 23, 2007– U.S.-based Delmarva Power has proposed an ambitious program for its Maryland customers that will combine traditional energy efficiency programs with innovative technologies to help customers manage their energy use and reduce the total cost of energy.

“Energy efficiency is the lowest cost and the cleanest way to address future energy needs,” said Dennis Wraase, Chairman of the Board, President and Chief Executive Officer, Pepco Holdings, Inc., the parent company of Delmarva Power. “If we can provide tools for PHI’s nearly two million customers to reduce their electricity usage, we can make a measurable contribution to meeting the nation’s environmental challenges and at the same time help customers keep their electric bills affordable.”
New technology will lead the way toward energy independence in Delmarva Power’s comprehensive plan. The proposal includes demand side management efforts such as rebates or other incentives for residential customers to update inefficient appliances with Energy Star replacements. Customers could also receive credits on their bills for allowing Delmarva Power to control, or intermittently turn off, their central air conditioning or heat pumps when wholesale electricity prices are high.

Business customers would receive financial incentives for using energy efficient equipment such as improved lighting and HVAC systems, and would be rewarded for reducing use during periods of peak demand.

Last year Delmarva Power invested in web-based, energy auditing software. That investment is already paying off for Delmarva customers, who can monitor their own energy use and learn what changes they can make to lower costs. The recent filing with the Maryland Public Service Commission outlining Delmarva Power’s comprehensive mix of energy efficiency and demand side management programs is the next step and represents the future in energy efficiency.

Delmarva Power also proposed to install smart meters in the first phase of an effort designed to improve reliability and, ultimately, give customers options for lowering usage and cost. The smart meters, which the company proposes to install in the homes of all Maryland customers over the next three to four years, would give Delmarva the ability to remotely identify the location of outages without customers calling in. When combined with additional investments in technologies planned by the company, smart meters can give customers the information and options they need to manage their demand when electricity prices are high.
A recent study sponsored by PJM and mid-Atlantic public utility commissions – including the Maryland Public Service Commission – estimates that programs such as those advanced in Delmarva Power’s blueprint for the future could save Delmarva customers $10.6 million per year, depending on how the programs are structured and how many customers participate.

As part of the filing, Delmarva Power recommended ways to fund the proposed programs and offered to work with the Maryland Public Service Commission to determine the most appropriate mechanisms to permit full and timely recovery of the company’s investments.