American Electric Power - Standard Offer Demand Response Program

May 29, 2010


American Electric Power's (AEP) Commercial & Industrial Standard Offer Program pays incentives to service providers who install energy efficiency measures in commercial or industrial facilities that are located within AEP Texas Central Company, AEP Southwestern Electric Power (Texas service territory only) or AEP Texas North Company service territories. Any entity that installs eligible energy efficient measures at a facility with electric service provided by a participating AEP company and has a maximum demand of more than 100 kW is eligible to participate in the program as a Project Sponsor. Any commercial or industrial AEP distribution customer may either host a project developed by a Project Sponsor or sponsor the project independently (must have peak demand maximum of 100 kW) through a 20 step process described in detail on the listed website. All projects must include a total estimated summer demand reduction of at least 10kW during peak summer hours (1 pm to 7 pm May 1st- September 30th). Project Sponsors are required to meet minimum eligibility criteria and sign a standard agreement with AEP, which includes an estimate of how many kW and kWh the project will save and the associated incentive payment amount. Detailed information, including eligible measures and application materials may be found on the website listed above. **Note that the Project Sponsors receive incentive payments from AEP Texas for installing energy efficiency measures. AEP Texas does not perform any of these energy efficiency services, nor does it install any efficiency measures directly for end-use customers, but instead contracts with the Project Sponsors, as required by state legislation.

Program Overview

Implementing Sector: Utility
Category: Financial Incentive
State: Texas
Incentive Type: Rebate Program
Web Site:
Administrator: American Electric Power
Start Date:
Eligible Renewable/Other Technologies:
  • Refrigerators/Freezers
  • Lighting
  • Chillers
  • Furnaces
  • Boilers
  • Heat pumps
  • Air conditioners
  • Windows
  • Motors
  • Custom/Others pending approval
Incentive Amount: $175/kW for peak demand reduction;
$0.06/kWh peak demand reduction
Maximum Incentive: 20% of the budget of the program.
Eligible System Size: Installed measures must have the potential to reduce peak summer demand by at least 10 kW
Equipment Requirements: If more than sixty-five percent (65%) of the total savings for the Project is derived from lighting Measures, incentive system is different


Name: Public Information - AEP
Organization: American Electric Power
Address: 1 Riverside Plaza
Columbus OH 43215-2372
Phone: (800) 531-5114

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.