West Penn Power Contract with Eaton Corporation as a CSP

1. Introduction
West Penn Power Company d/b/a Allegheny Power (hereinafter referred to as "Allegheny
Power", "AP", or as "the Company") is soliciting a request for proposal (RFP) for
bidders to assist with providing engineering and consulting services for commercial and
industrial customers as result of Pennsylvania Act 129 of 2008.
As required by Pennsylvania Act 129 of 2008, electric utilities will design a cost
effective energy efficiency and conservation (EEC) and demand reduction programs to
assist customers with targeted energy reductions of at least 1% by May 31, 2011, and 3%
by May31, 2013, and targeted demand reductions of 4.5% by May 31, 2013. Allegheny
Power has submitted to the Pennsylvania Public Utility Commission, a Custom
Applications Program targeting approximately 550 ofthe largest commercial and
industrial customers to realize energy savings by implementing various energy
management and conservation technologies. AP will provide financial incentives of up
to $500,000 per project, with a maximum program expenditure of $ 1,500,000 in Program
year 2010, and $2,000,000 in Program years 2011 and 2012.
In an effort to maximize the utility funding of such projects, AP will conduct a
competitive evaluation process for prospective projects from its commercial and
industrial customers. Annually, AP will issue a request for proposals from its
commercial and industrial customers for projects that can achieve a minimum of 250,000
kwh/yr or greater energy savings
Allegheny Power's participating customers will submit a proposal for an electric energy
savings project, including the amount ofthe reward (utility incentive) to complete the
project. AP will review the submittals and pre-qualify customers for this program by
having the successful bidder of this RFP perform a high level, targeted, facilities audit to
determine the project feasibility and projected energy savings. After the audits are
completed on the pre-qualified facilities, AP will further evaluate the financial viability of
the project by ranking the projects on a total cost per kWh saved, and performing a total
cost recovery (TRC) test on the project, and any of its sub-measures. For the customers
that pre-qualify, AP will contribute up to $10,000 for the targeted audit. If the customer
does complete the project within 2 years ofthe energy audit, AP shall bill the customer
for the energy audit.