West Penn Power Contract with Eaton Corporation as a CSP

WLTW
1. SUMMARY OF APPROACH
Summarize Eaton's approach to energy audits
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Eaton Corporation
130 Comnr»nweatth Drive
Warreniae, PA 15301
Eaton Corporation, d/b/a Eaton Electrical Services and Systems has registered with the
Commonwealth of Pennsylvania, Pennsylvania Public Utility Commission under Docket No. A-2009-
21 13248. Eaton received confirmation in a letter dated August 3, 2009 from James McNulty that our
company met the minimum qualifications to be a Conservation Service Provider (CSP) with electric
distribution companies (EDO's) in the State of Pennsylvania pursuant to Act 129 of 2008. P.L. 1592.
Eaton would like to provide this response to West Penn Power d/b/a Allegheny Power's Request for
Proposal of Energy Audit Services of Pennsylvania Act 129 - Custom Commercial/Industrial
Program. Eaton would like to be selected as Alleghany Power's Conservation Service Provider
(CSP) in the Pennsylvania service area. Eaton feels that our experienced staff, commitment and
local presence in the Pittsburgh area make our organization the superior choice.
Eaton Corporation, like other ESCO's in the area, can provide Energy Audits in Allegheny Power's
service area. Eaton, however, understands the fact that the Pennsylvania Public Utilities
Commission (PA-PUC) has legislated civil penalties which will be borne by Allegheny Power in the
event that the savings requirements are not met. In the bid documents, under Section 11, Allegheny
Power stipulated that the Conservation Service Provider (CSP) would be liable for a portion of the
penalties should we tail lo achieve the savings targets.
Eaton has to take exception to Section 11 in this request for proposal as it is written. There must be
specified limits to the amount of penalty for which Eaton would be liable. The limit could be a
percentage of the compensation Eaton received from Allegheny Power, but will not be the anywhere
close to the potential $20 million dollar fine which could be levied by the PUC. Eaton intends to open
a dialog on this issue with Allegheny Power should Eaton be a finalist on this RFP. The subject will
be limits to this liability, not necessarily the elimination of a penalty.
Eaton welcomes the performance challenge, however with the penalty in place; we can not act as a
passive participant in performing energy audits. Eaton feels that our input is beneficial to achieve
the ultimate goal of electrical energy savings in the service territory. We would like to present ideas
for consideration that go beyond the requirements detailed in the RFQ.
Eaton has assembled an extremely talented and experience group of Senior Energy Consultants
whose bios are provided. We would like to emphasize the caliber of this team. Mr. Paul Graves has
been working in the energy management field since 1979 when he joined Natkin Energy
Management. He has performed 700. audits and numerous projects. Dr. Saied Gouda, D. Eng.
developed and managed Detroit Edison's Energy Management program. Al its height, Dr. Gouda's
team numbered five (5) supervisors and sixty-eight (68) energy managers. Mr. Wilson Jumper
designed, developed and managed the energy audit program for the United Stated Postal Service.
Many of the team wrote the articles and standards which other companies follow, to use a
vernacular, "our team has been there and done that..."
There is no doubt that Eaton and Allegheny Power can craft a successful program and obtain the
electrical energy savings legislated by the PA - PUC.
Allegheny Energy
Proprietary and Confidential