Energy Incentive Programs, West Virginia

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Updated July 2015

West Virginia utilities budgeted $12 million in 2014 to promote energy efficiency in the state.  

What public-purpose-funded energy efficiency programs are available in my state?

West Virginia has no public-purpose-funded energy efficiency programs. 

What utility energy efficiency programs are available to me?

AEP Appalachian Power’s Commercial and Industrial Standard program offers incentives for a wide variety of projects such as lighting, occupancy sensors, variable frequency drives, HVAC, and food service equipment. The Custom C&I program offers $0.07/kWh for first-year savings up to 50% of a project’s incremental cost. 

First Energy (Potomac Edison and Mon Power) sponsors the Lighting for Business Incentive Program, in which lighting retrofits and lighting controls’ installations are incentivized at $0.05/kWh of first-year savings.

What load management/demand response options are available to me?

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers several demand response programs. Two specific programs may be attractive to federal facilities:

  • PJM’s emergency “capacity” program allows demand resources to participate in PJM’s Reliability Pricing Model (RPM) forward capacity market via a curtailment service provider (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty CSP).  Participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD), or to a specific kW level (known as firm service level, FSL), within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. Penalties for non-compliance are substantial. Remuneration is based on the results of the annual RPM capacity auctions in various PJM regions. Remuneration levels for the 2016-17 PJM year (which begins June 1, 2016) are in the $22,000 per MW range for West Virginia customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called. 

  • The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Customers start by submitting load reduction bids (through their CSP) of at least 100 kW into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (the day-ahead “locational marginal price,” or LMP). Reductions are figured based on a customer baseline load (CBL), which is essentially the average loads for the same hours in four of the facility's previous non-responding days. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage. 

In both programs, participants can provide load reductions through curtailing electricity use or by operating on-site generation consistent with local environmental regulations and permits.

AEP Appalachian Power Company and Wheeling Power Company (both subsidiaries of American Electric Power) offer two demand response options:

  • The Emergency Curtailable Service Rider provides credit ($0.35/kWh or $0.50/kWh, depending on whether the customer has committed to a maximum of four or eight hours of load reduction per call) to participants for reducing load when requested by the utility during emergency conditions in the winter (December through February) or summer (June through August).  Even if the curtailment period is less, credit is guaranteed for at least two hours.  Both winter and summer period curtailments are capped at a total of 50 hours. 

  • The Price Curtailable Service Rider provides credit to participants for reducing load when requested by the utility during high price periods.  Participants specify the minimum price as well as the maximum number of days they would be willing to curtail. Payments are set at the greater of the participant’s stated minimum price and 80% of the daily-published price index for electricity into the system. 

For both programs, customers must curtail a set amount upon notification or be assessed non-compliance penalties. Payments are based on the difference between the participant’s peak demand and the highest 30-minute integrated demand during the curtailment period.  Participation is limited to customers with a curtailable demand of at least 1 MW.  

What distributed energy resource options are available to me?

The Database of State Incentives for Renewables and Efficiency (DSIRE) provides information on programs that offer incentives for renewable distributed generation. West Virginia currently has no programs of this type open to federal customers.

Are there energy efficiency programs sponsored by state government?

No state energy efficiency programs are currently available to federal customers.

What additional opportunities are available to me?

Federal customers whose utilities have area-wide supply contracts through GSA (e.g., Allegheny Power and Dominion Hope), may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Federal facilities should contact their account executive to determine the level of each utility's participation.

PJM (see above in the demand response section) now allows energy efficiency projects to participate in its forward capacity markets, based on its Reliability Pricing Model (RPM). To be eligible, energy efficiency projects must reduce load continuously by at least 100 kW during peak summer hours. This load reduction can be bid into PJM’s annual (for three years in advance) and “residual” (nearer-term) capacity auctions, and if selected will receive the auction clearing price. Interested customers can participate through energy service companies conducting ESPCs or utilities executing UESCs at their sites.