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Who We Are and What We Do
American Electric Power
American Electric Power owns more than 36,000 megawatts of generating capacity in the United States and is the nation's largest electricity generator. AEP is also one of the largest electric utilities in the United States, with more than 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid.
3 . This “identity crisis” is made worse by confusion following the sale of CPL Retail Energy and WTU Retail Energy. there still is confusion about who AEP Texas is and its role in the retail market.Continuing Confusion over Choice Even though retail electric choice was introduced over four years ago (January 2002).
Unbundling Generation Wires REP Separation of traditional investor-owned utility into three separate functions 4 .
Bills the customers Orders connection of new service Orders disconnection of service for non- payment 5 .Role of the Retail Electric Provider Sells electricity to the end-use customers.
Role of the Energy Delivery Company The energy delivery company. or “Wires” company delivers electricity over its powerlines to the end-use customers on behalf of Retail Electric Providers (REPs). The Wires Company also is responsible for: – – – – Building new powerlines Restoring power following outages Reading electric meters Service connection and disconnection as ordered by the Retail Electric Provider (REP) 6 .
7 . AEP sold CPL Retail Energy and WTU Retail Energy to Centrica plc.Other Developments In December 2002. AEP also sold to Centrica the Central Power and Light and CPL name. as well as the West Texas Utilities and WTU name. AEP Texas delivers the electricity over its powerlines in both South Texas and West Texas.
Texas Central Company 8 . • AEP and AEP Texas are no longer SWEPCO Texas affiliated with CPL Retail Energy and WTU Retail Energy. which delivers electricity throughout the service territory of the former Central Power and Light Company. which deliver electricity throughout the service territory of the former West Texas Utilities Company. and Texas North Company.AEP Operations in Texas – Includes AEP Texas and SWEPCO’s Texas operations • AEP Texas includes Texas Central Texas North Company Company.
Questions about Fees or Services Please call our AEP Texas Customer Solutions Center if you have a question or concern about the following issues: • Fees such as those charged for a broken meter seal. 9 . denial of access to the meter or a service call fee • Power Quality • Construction • Meter Installation • Tree Trimming • Outdoor Lighting Call the AEP Texas Toll-Free Number (1-877-373-4858) for the service issues shown above.
10 . Note: AEP Texas is no longer affiliated with CPL Retail Energy or WTU Retail Energy.When to Call Your REP* Billing Issues Payment Arrangements Deposits Meter Checks Connecting Service with Existing Meter Final Bills and Disconnection of Service Service Reconnection after Disconnection for Non-payment of Bill * The phone number of your REP is located on your electric bill.
call AEP-Texas at 1-866-223-8508 11 .To Report an Outage: To report a power outage.
Power Factor Billing January 31. 2006 12 .
ERCOT Protocol Section 5.Background The PUCT adopted Standard Terms & Conditions that set a 95% power factor (PF) benchmark for consumers (Applies to all ERCOT TDSPS). requires all TDSPs to maintain a 97% PF. 13 . A significant cost in AEP’s annual budget has been for correcting the system PF because AEP did not have the metering in place to enforce the PF provision on customers with low power factors (other than Transmission Service customers).
5. as calculated in the appropriate Rate Schedule in Section 6. or. Until the proper equipment has been installed to correct the Power Factor problem. This option applies only to customers with current leased facility agreements.5 Power Factor If the Power Factor of Retail Customer's load is found to be less than 95% lagging as measured at Retail Customer's Meter.95)/Power Factor 14 . to reimburse Company for installing the necessary equipment on Company's Delivery System. at Retail Customer's option.1. the Billing Demand associated with Retail Customer's use of Delivery Service. Company may require Retail Customer to arrange for the installation of appropriate equipment on Retail Customer's side of the Meter necessary to maintain a Power Factor of not less than 95% lagging as measured at Retail Customer's Meter.5. RATE SCHEDULES. may be adjusted according to the following formula: Adjusted Billing Demand = (Billing Demand x .
light. Reactive Power – sustains the electromagnetic field.What is Power Factor? Power factor involves the relationship between two types of power: Working Power and Reactive Power. motion. Inductive loads require two kinds of current: Working Power – performs actual work of creating heat. Most loads in electrical distribution systems are inductive. which means that they require an electromagnetic field to operate. 15 . PF measures how effectively electrical power is being used. etc.
30 .70 1 1 16 .g. space heater) Power Factor Percent .20 ..Examples of Electric Equipment and Their Power Factor Different types of electric equipment have different Power Factors and consequently different efficiencies and current requirements: Name of Equipment Lightly loaded induction motor Loaded induction motor Neon-lighting equipment Incandescent lamps All types of resistance heating devices (e.80 . toaster.
Power Triangle Working Power (kW) a b c Apparent Power (kVA) Reactive Power (kVAR) 1. Reactive Power (kVAR) .Measured 2. Real Power or Working Power (kW) .Measured 3.Calculated 2 2 2 2 Pythagorean Theorem: 2 2 c = a+ b kVA = kW + kVAR 17 . Apparent Power (kVA) .
95 PF kWh = kVAh = kW billed 18 .Calculating Power Factor kVAh = kWh2 + kVARh2 Average PF over month Power Factor Metered kW x 0.
600 kVARh 762.425 762.625 KW x 0.95 .308 KW billed = 66.600 kWh. 846.669 = 2.425 kVAh 1.600 kVARh2 = kVAh kVAh = 1.9 % 19 .625 kW.139.600 kWh2 + 846.600 kWh PF = 1.139. 762.Example 1: January 2006 Billing Monthly meter readings: 1.
Improves system efficiency by reducing losses Enhances system operation and reliability. Increases system capacity capabilities.Why Enforce Power Factor? Places the cost burden more on those customers causing the problem rather than all rate payers. 20 .
Why only accounts over 700 kW? ERCOT Protocol required metering upgrade to IDR for accounts over 700 kW. Correcting the PF on larger accounts will result in a more noticeable improvement in the system PF. 21 . AEP took advantage of the meter change-outs to install metering capable of making the measurements needed for PF. non-discriminatory application of the policy. Technology is more readily available for correcting the PF of larger loads. The 700 kW and above standard provides for a uniform.
22 . Generally. the average PF is slightly more forgiving. Provide interim communications between July 2005 and the initiation of the enforcement to the affected market participants. but the resulting adjustment to the customer’s billing demand still sends the proper pricing signal to motivate the customer to take corrective action. Begin enforcement with the January 2006 billing. Initiate communication of AEP’s intent to implement PF enforcement with affected market participants starting in July 2005.AEPs’ Approach to Enforcement Accounts will be assessed using monthly average PF rather than its coincidental on-peak PF.
23 . •Replace standard motors as they burnout with energy efficient motors sized correctly. •Install capacitors in the circuit .Power Factor Correction •Minimize operation of idling or lightly loaded motors.
and solid state soft starters will affect design.Recommendations Work with a qualified electrical contractor or engineer to study your application. •Inverters. which can only be addressed with filters. •Different strategies of correction. •Power factor can be affected by harmonics. static versus bulk. 24 . variable speed drives.
Open Discussion 25 .