1

Presentation to:VA Governor’s Conference on

EnergyOctober 16, 2013Tom Weaver, PE

American Electric Power’s Experience with

Volt/Var Optimization

Historical VoltageRange

VVO Range

120

124

128

116

112

108

104

“A”

Se

rvic

e

“A” U

tilizatio

n

“B” U

tilizatio

n

“B” S

erv

ice

Volt VAR Optimization – Basic Concepts

2

Historical VoltageRange

VVO Range

120

124

128

116

112

108

104

“A”

Se

rvic

e

“A” U

tilizatio

n

“B” U

tilizatio

n

“B” S

erv

ice

CVR Calculation – 60 W Incandescent Bulb

3

Volt VAR Impacts on Customer’s Motors

Real Power consumption is 8% lower @ 115V than at

125V

kVAR ↓ ~ 20%

kW ↓ ~ 8%

4

Volt Var Optimization will reduce customer peak demand and energy consumption at the meter

123 Volts 119 Volts

1100 kW609,000 kWh

1067 kW590,730 kWh

Example: Customer Demand and Energy Savings

“Big Box” Store “Big Box” Store

5

Volt VAR Optimization Architecture

5

Volt VAR Controllers

Mesh Network

Mesh Master

EOL Monitors

Line Regulators

Line Capacitors

DMS - GENe

Fiber or Mesh

6

AEP’s Volt / VAR Optimization Technology Deployments

• AEP Ohio :– 17 circuits in service– 80 circuits included in Phase II gridSMART to meet State EE Targets

• Indiana & Michigan Power Co.:– 9 circuits in service – day on/off testing October - December– Filed for inclusion of the 9 circuits as an EE Program in IN– Proposed that 75 circuits be included as EE by 2019

• Public Service Company Oklahoma :– 11 circuits in service

• Kentucky Power Co. :– 25 circuit project in progress– 21 circuits to start day on/off testing in October

7

Example of Energy Savings on Circuit 4503 using Utilidata AdaptiVolt System

8

SCADA / PI View

9

“Value” of VVO Compared to

Generation Alternatives

Levelized cost of VVO is in the low part of the Energy Efficiency range due to low initial capital cost and no on-going fuel cost

“LEVELIZED COST OF ENERGY ANALYSIS “– VERSION 3.0 Lazard, February 2009

10

VVO for Energy Efficiency / Capacity Reduction

• Energy Efficiency (24/7 Operation)– Help meet state Energy Efficiency targets– Receive incentives / participate in DR markets – TRCs 2 to 3 – better than many current programs– Reduce Energy Consumption by Customers– Not limited by “participation rates”– Reduce Emissions – Relieve Transmission Congestion

• Capacity (Demand Reduction Only )– Reduce amount of capacity required at peak / critical times– Short payback period if generation charges are based on peak demand– Defer investment in capacity replacement or upgrades– Engage in DR Market– Relieve Transmission Congestion

11

Questions?Tom Weaver – tfweaver@aep.com