Client: American Municipal Power Authority (AMP)
In August of 2007, American Municipal Power-Ohio (now American Municipal Power or “AMP”) contracted with VEIC to evaluate how energy efficiency might fit into the portfolio being developed for its 124-member municipal utilities. AMP’s goal was to find a stable, affordable, and sustainable portfolio of energy resource options that would help buffer their member utilities from volatility in the wholesale power market - while also providing customer, community and environmental benefits.
VEIC provided AMP with an analysis of efficiency services, a proposed budget for deploying those services, and an estimate that showed that AMP could ramp up to 1% in annual energy savings for its members by 2015. Based on this initial analysis and subsequent negotiations, VEIC proposed to partner with AMP to become a full-service energy efficiency implementation entity referred to as Efficiency Smart. Efficiency Smart proposes to deliver efficiency services to a participating group of AMP’s member utilities over a 3 year time period.
Through the relationship with AMP, VEIC is now planning the development of a “turnkey” integrated, performance-based implementation service, based on the Efficiency Vermont model. Assuming critical mass participation is achieved, VEIC estimates Efficiency Smart will yield:
- Projected cumulative annual savings of approximately 70,000 MWh for the first 3 years
- Levelized cost of 3.9 cents/kWh over life of the benefits
- Benefit/cost ratio of 2 to 1
- Creation of a roadmap for continued growth in energy efficiency gains
- Improvement in local economies and job growth