There is no control over the actual file it writes to or where it's located, just what global variables WoW stores in it. To shorten Phanx's explanation, the SavedVariablesPerCharacter directive just tells WoW what globals to save for your addon. These globals will be available when ADDON_LOADED fires for your addon.
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WoWInterface AddOns
"All I want is a pretty girl, a decent meal, and the right to shoot lightning at fools."
-Anders (Dragon Age: Origins - Awakening)
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