Hallinan Law Offices, PLLC

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1 ,..../I\,.... Hallinan Law Offices, PLLC July 28, 2009 Sandra Squire Executive Secretary Public Service Commission of West Virginia 201 Brooks Street Charleston, WV RE: CASE NO E-GI July 9,2009 I Dear Ms. Squire: Enclosed for filing in the above referenced matter on behalf of the West Virginia Community Action Partnership (WVCAP) are the original and twelve (12) copies of the Initial Brief of the West Virginia Community Action Partnership. Service is being made on the parties. Thank you for your attention to this matter. Very truly yours, Enclosures: cc: Service List JacqGline A. Hallinan, Esq. 100 Capitol Street, Suite 804 Charleston, West Virginia Telephone Fax 304*346*1203

2 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARlLESTON RE: CASE NO E-GI July 9,2009 MOTION TO EXTEND TIME TO FILE INITIAL BRIEF Comes WVCAP by counsel, Jacqueline A. Hallinan, and moves the Commission to extend the time to file its initial brief from July 24,2009 to July 28,2009. In support of motion, counsel states: 1. That WVCAP is a non profit intervenor who is represented by one attorney. 2. That on July 22,2009 the parties convened to make a good faith effort to resolve the outstanding issues prior to submission to the Commission, and counsel participated in that meeting until noon on July 22, The parties did not reach an agreement to present to the Commission. 3. That counsel was required to attend a two day training on July 23, and 24,2009 in Morgantown, West Virginia, sponsored by the federal courts. 4. That counsel has consulted with counsel for the Company, Staff and the Consumer Advocate Division who authorized her to represent they do not oppose this extension. 5. That no party or the Commission will be prejudiced by the granting of this motion. WVCAP intends to address any issue raised in initial briefs in its rebuttal brief. Wherefore, WVCAP moves that the Commission accept this brief for consideration. d@& Jacqddline A. Hallinan, Esquire (#5 189) WVCAP By counsel

3 CASE NO E-GI PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON July 9,2009 CERTIFICATE OF SERVICE I, Jacqueline A. Hallinan, counsel for Intervenor WVCAP, hereby certify that the attached MOTION TO EXTEND TIME TO FILE INITIAL BRIEF on behalf on WVCAP was served by mail or hand delivery on all parties listed on the service list of this matter on July 28, 2009 HALLINAN LAW OFFICES, PLLC 100 Capitol Street, Suite 804 Charleston, West Virginia (304)

4 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON RE: CASE NO E-GI July 9,2009 INITIAL BIUEF OF WEST VIRGINLA COMMUNITY ACTION PROGRAM Comes the West Virginia Community Action Partnership (WVCAP) by counsel and files its initial brief: On March 9,2009, Appalachian Power Company and Wheeling Power Company filed their Expanded Net Energy Cost proceeding before the Public Service Commission of West Virginia. The Companies requested an increase in rates and charges. WVCAP filed its petition to intervene on April 23,2009. The petition was granted by Commission order in May WVCAP filed the direct testimony of Mary Chpps, the executive directive of WVCAP in support of its request for continued funding for weatherization from the Appalachian Power, and requested an increase in funding to $500,000 annually. Ms. Chipps also testified at the hearing of this matter on June 16, 2009, and her filed testimony was admitted into evidence. ARGUMENT Since 1997, the Companies (APCo and WPCo) have participated in an energy efficiency partnership with WVCAP. The current program is scheduled to expire in August, The exhibits and proposal submitted by WVCAP describe the relationship as an Electric Efficiency Partnership (EEP) between the WVCAP/West Virginia Governor s Office of Economic Opportunity (GOEO) Weatherization Assistance Program and AEP s Appalachian Power Company/Wheeling Power Company. The Companies current contribution of $250,000 per

5 year provides comprehensive weatherization services to low income customers of the Company. Ms. Chipps testified the GOEO subcontracted with thirteen local Community Action agencies to provide weatherization services to low income residents of all counties in the state of West Virginia. Chipps, Direct at 1. She testified that the low income consumers typically pay the highest percentage of their income for energy costs compared to other residential income groups. Chipps, Direct at 3. Appalachian Power Company has had DSM and weatherization electric efficiency initiatives ongoing with GOEO and local community action agencies since Chipps, Direct at 3. As a result of a 1996 performance-based ratemaking case, APCo partnered in a three year low income weatherization effort with OEO with services delivered by local community action offices throughout APCo s service area in the amount of $150,000 per year. That amount included $50,0000 to establish an HVAC weatherization training center in Princeton, West Virginia. After twelve years, the HVAC training and energy center is still in existence and providing basic and advanced heating and cooling diagnostics to work on low income homes. Chipps, Direct at 4. The partnership with APCo was extended in March, 2000, with APCo agreeing to provide $12,500 per month to fund a low income weatherization program through the effective starting date of the Public Service Commission electricity deregulation plan or December 31, 2002, whichever was earlier. Chipps, Direct at 4. When this agreement was reached, it appeared that an electrictic deregulation plan would be implemented and a system benefit charge would be established to find a low income trust fund for energy efficiency. This partnership ended on December, 2002, when the electric deregulation plan was tabled. Chipps, Direct at 4. In the 2006 rate case, APCo entered into a three year agreement with WVCAP to 2

6 contribute $250,000 per year for a blended weatherization utility program. This program is due to end in August, Chipps, Direct at 4. The Company formed a Low Income Assistance Task Force in July, 2008 at the request of the president of APCo. Chipps, Direct at 8. The task force concluded that weatherization provides the greatest long term energy savings for consumers and recognized that the Company had a weatherization program partnership underway in West Virginia through the community action network. Chipps, Direct at 9. The recommendation from the Low Income Assistance Task Force for West Virginia included the recommendation that APCo/WPCo. s Electric Efficiency Partnership program be continued and expanded for another three years. Chipps, Direct at 9. It is significant that no testimony was offered by the Company to dispute the effectiveness or efficiency of the current partnership. The testimony of Mr. Ferguson, the Company witness who addressed WVCAP s intervention is simply that the Company would prefer not to fund the program pending an strategic planning program by Summit Blue Consulting, LLC.. This is not sufficient reason to allow a valuable program to lapse. Considering that the Low Income Assistance Task Force commended the weatherization program as highly valuable and effective, allowing the Company partnership with WVCAF to lapse is not in the best interest of rate payers. WVCAP reserves the right to address issues raised in the parties initial briefs in its rebuttal brief. Conclusion A renewed and expanded Electric Efficiency Partnership Program with Appalachian Power and Wheeling Electric Power will benefit low income customers of the Company and the Company, ultimately benefitting all ratepayers. WVCAP has asked for an expansion of its 3

7 program to $500,000 per year, however, at a minimum, the partnership with the Company should not be permitted to lapse. WVCAP By counsel Jacqudne A. Hallinan, Esquire (#5 189) Hallinan Law Ofices. PLLC 100 Capitol, Suite 804 Charleston, West Virginia Phone: 304/ jhalliiir~i~~hallinlznlaw.coin 4

8 CASE NO E-GI PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON July 9,2009 CERTIFICATE OF SERVICE I, Jacqueline A. Hallinan, counsel for Intervenor WVCAP, hereby certify that the attached INITIAL BRIEF on behalf on WVCAP was served by mail or hand delivery on all parties listed on the service list of this matter on July 28,2009 c Jacqaeline A. Hallinan, Esq. #5 189 HALLINAN LAW OFFICES, PLLC 100 Capitol Street, Suite 804 Charleston, West Virginia (304)

Hallinan Law Offices, PLLC

Hallinan Law Offices, PLLC Sandra Squire Executive Secretary Public Service Commission of West Virginia 201 Brooks Street Charleston, WV 25301 RE: 06-0960-E-42T wad- 6 --D MONONGAHELA POWER COMPANY and