DATE: Wednesday, July 2, 1997               TAG: 9707020063

SECTION: DAILY BREAK             PAGE: E3   EDITION: FINAL 

SOURCE: BY MARY FLACHSENHAAR, CORRESPONDENT 

                                            LENGTH:   95 lines

ENERGY MANAGEMENT SYSTEMS DEVICES GIVE CUSTOMERS MORE CONTROL OVER ELECTRIC BILLS.

THE DISPLAY panel that hangs on a wall in John Parrish's garage may be small but it's very smart.

The device, called a Pensar Energy Management System, is programmed to rotate appliance usage in Parrish's home when lots of electricity is being used at peak times, the hours when rates are highest for those on Virginia Power's time-of-use rate. For example, while the air conditioner is working, the hot-water heater may shut off and be programmed to start again later.

Installed in April 1995, the system now saves Parrish $70 a month, he said.

``The concept sounds snake-oily but it just flat-out works,'' said Parrish, who paid $1,400 for the system. ``I've even talked a few friends into getting one.''

While energy management systems such as Parrish's and other energy-saving devices called home automation systems and demand controllers have been around for about a dozen years, they have just become popular in Virginia in the last couple of years. But many people are still not aware of what they are and how they work, say those who sell the systems.

``The device puts the customer more in control of the electric bill,'' said Larry Meekins, owner of Creative Energy Controls, Inc., in Virginia Beach, where Parrish bought his Pensar.

``When all the appliances are stacked in peak hours, they create a high demand,'' said Meekins. ``These systems raise the demand during low times, changing the peaks and valleys of demand into a straight line.''

Because electricity is cheaper during nonpeak hours for customers on a time-of-use rate, that customer's monthly bill might drop 20 to 40 percent, added Meekins.

Six months after the Pensar's installation, Parrish, who is on a budget plan with Virginia Power, received a $359 refund. He says that the system now saves him close to 35 percent of his electric bill.

``I will have the unit paid off in less than three years,'' he said. ``I had no idea I was going to save so much.''

The devices, however, won't yield such impressive savings for all customers.

``Our typical customer has a monthly bill that averages $140 or more,'' said Jack Greenhalgh, vice president of Energy Consultants Inc. in Virginia Beach, which sells the Energy Sentry demand controller. ``If your bill is below that, there won't be enough savings to warrant that piece of equipment.''

His clients save, on the average, $630 a year, said Greenhalgh.

Energy Consultants' price range for its demand controllers, $1,200 to $2,500, is typical of other local companies, which are listed in the Yellow Pages under ``energy conservation products & services'' and ``energy management & conservation consultants.''

The customer is not the only one who wins with these systems. Utility companies benefit because by reducing the peaks in demand for electricity during high-use times, the companies can avoid building new generators or buying additional power from other generators in an attempt to meet peak-time demand.

Virginia Power's time-of-use (TOU) rates are an incentive to customers interested in modifying their power usage, although the vast majority of consumers use the regular rate for electricity, which remains the same no matter what the time of day. These discounted TOU rates are available to customers who are willing to shift electrical usage from on-peak to off-peak hours of the day and to customers who can reduce their on-peak demand, which is the maximum amount of electricity used at any one time.

Peak demand hours from June 30 to Sept. 1 are 11 a.m. to 10 p.m. Monday through Friday. From Oct. 1 to May 31 peak hours are 7 a.m. to 11 a.m. and 5 p.m. to 9 p.m. Monday through Friday. All other times, including Saturday, Sunday and holidays, are designated off-peak hours.

Joe James, energy consultant for Virginia Power, emphasizes that a customer can use TOU rates without purchasing one of the electronic devices even though the rates can also be used in conjunction with a device, which then does the thinking for the customer.

``The consumer should be aware that in no way are any of these companies affiliated with Virginia Power,'' said James. ``They simply supply a control device that can take advantage of our time-of-use rate.''

An unscrupulous company might try to convince a customer that its device is necessary to facilitate this rate. This is not so. Virginia Power installs a new meter free of charge when a customer signs up for a TOU program, said James.

More advice on how to select an energy management system comes from James and those who sell the systems:

Don't make a snap decision. First call the customer service department at Virginia Power (1-800-772-4338) to find out how TOU rates work. Call the Better Business Bureau (in Norfolk, 531-1300) to learn if any complaints have been made against the company you're doing business with.

Make sure the company has a good service policy.

Check to see if the company provides a monthly report of the customer's savings, so the consumer can determine if the unit is set at the right level.

Make sure the company is willing to provide a a list of customer references. Use them. ILLUSTRATION: Photo

IAN MARTIN/The Virginian-Pilot

John Parrish with the panel for his Pensar system. The device, which

rotates appliance usage in his home, saves Parrish $70 a month.

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