ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, April 5, 1994                   TAG: 9404050143
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: By GREG EDWARDS STAFF WRITER
DATELINE:                                 LENGTH: Medium


AEP TESTS DEVICE TO CUT POWER BILLS

American Electric Power Co., parent of Appalachian Power Co. of Roanoke, plans to equip 25,000 homes with a new automated energy-management system to help customers conserve energy and money.

The Transtext Advanced Energy Management System was developed by Integrated Communications Systems Inc. of Atlanta with investment support from AEP and other companies.

The system allows electric customers to shift the operation of their major electric appliances to times of day when electricity is cheaper. During pilot testing of the system at homes in Virginia, Ohio and Indiana, it saved customers an average of $175 a year on electric bills, AEP said.

Besides reducing customers demand for electricity by up to 60 percent during peak demand when it's highest-priced, the system will help AEP avoid having to build new power plants, said Joe E. McDonald, AEP's assistant controller.

Customers using the system pay variable rates that offer one of four prices in any given hour, depending on overall demand for power from AEP companies.

A special modem in homes of participating customers provides them with price information so they can choose one of four possible prices for heating and air conditioning. The modem does not require special wiring or new communications equipment, making it easy to install in homes, the company said.

Appalachian hopes to expand the number of participants in the Virginia pilot program this year, said Marsha Ryan, marketing director.

The company has 145 units in operation in the Roanoke area as part of the pilot program and hopes to install about 30 more this year, Ryan said.

The commercial cost per residence has not yet been determined, Ryan said. But the company hopes mass production will make them affordable. The units produced for the pilot study have cost about $700 apiece, she said.

AEP plans to have the first 25,000 units in operation by 1997, she said.



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