$75M to Lower Ohio Energy Costs and Create 500 Jobs

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Brown Wrote Letter in Support of Funds for Smart Grid Project at AEP that Will Create 500 Jobs, Improve Energy Efficiency, and Lower Costs

November 24, 2009 -- GROVEPORT, OH - U.S. Senator Sherrod Brown (D-OH) and U.S. Energy Secretary Steven Chu announced $75 million in new Recovery Act funds to improve energy efficiency and lower costs for AEP Ohio consumers. Brown wrote a letter in July in support of these funds, which are expected to create 500 jobs while improving energy efficiency through Smart Grid technology.

"These funds will help Ohio lead the nation in the use of Smart Grid technology, while creating hundreds of new jobs and reducing energy costs," Brown said. "This project will advance technology that improves our electrical system and helps consumers lower their energy costs. Through this sort of leadership and a partnership with the federal government, Ohio can become the Silicon Valley of clean energy manufacturing."

At today's event, Chu announced that the Department of Energy (DOE) is awarding $620 million in demonstration grants for projects that utilize advanced Smart Grid technologies to improve the efficiency and reliability of our nation's electrical grid. AEP Ohio is one of 32 demonstration projects across the country that will act as models for widespread deployment of Smart Grid systems across the country. In addition to the $620 million in funds allocated through the American Recovery and Reinvestment Act (ARRA), the Smart Grid demonstration program will leverage $1 billion in funds from the private sector.

AEP will utilize the $75 million in Recovery Act funds as part of a $150 million project that will install approximately 111,000 advanced energy meters in northeast central Ohio in 2010. In addition to the meters, AEP will utilize new grid technology, plug-in hybrid electric vehicles, advanced energy appliances and consumer systems that help customers manage electricity costs and use.

This funding will benefit 100,000 Ohio consumers in parts of Columbus, Gahanna, New Albany, Bexley, Whitehall, Reynoldsburg, Westerville, Blacklick, Johnstown, Alexandria, Minerva Park, and Pataskala. AEP estimates that the project will help reduce energy consumption by 18,000 megawatt-hours and reduce energy costs to consumers by $5.75 million.

Brown wrote a letter to Energy Secretary Chu on July 29, 2009 urging him to approve funds for this project. In his letter, Brown pointed to Ohio's leadership in clean energy technology.

"Ohio is well positioned to lead the country in creating and expanding the green manufacturing sector," Brown wrote. "We have made significant investments in alternative energy, and have proven that Ohio's workforce is second to none in developing and adapting the skill sets necessary for the green manufacturing industry. With the leadership of AEP, Battelle, and GE, it is my hope that the economic incentives afforded by the development of smart grid businesses will benefit Ohioans for many generations to come."

Recently described as "Congress' leading proponent of American manufacturing," Brown has been working with his colleagues to ensure clean energy legislation invests in the competitiveness of American manufacturing and provides support to the regions, industries, and consumers most affected by the legislation. After holding more than 130 roundtables across Ohio, Brown introduced the Investments for Manufacturing Progress and Clean Technology (IMPACT) Act of 2009. This legislation, which was included in the House-passed clean energy bill, would create a $30 billion revolving loan fund to help former auto suppliers and other small and mid-sized manufacturers retool for the clean energy economy. The bill is estimated to have the potential to generate more than $100 billion in revenue for clean energy businesses and create 680,000 direct manufacturing jobs and nearly two million indirect jobs over five years.

Brown and Chu were joined by U.S. Rep. Mary Jo Kilroy (D-OH) and Lt. Gov. Lee Fisher at the announcement, which followed a tour of the American Energy Partnership (AEP) Dolan Technology Center.

Source: Senator Sherrod Brown