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AEPS Compliance Filing Requirements: Staff Guidance and Worksheet for 2013 Compliance Year

 

You can reach Staff’s AEPS team with any questions by emailing AEPS@puc.state.oh.us.

 

  1. AEPS FILINGS:  The AEPS rules (4901:1-40, OAC) include two separate annual filing requirements.  Both are due by April 15th.  The annual compliance status report is addressed in 4901:1-40-05, OAC, while the more forward-looking compliance planning document is addressed in 4901:1-40-03(C), OAC.   A link to Chapter 4901:1-40, OAC, is provided:  http://codes.ohio.gov/oac/4901%3A1-40

    Some companies file these two documents in a single case docket, while others opt to file in separate case dockets.  Staff finds either way to be acceptable.   These reports should be filed in cases with an “EL” industry code and an “ACP” purpose code.  For filings in April 2014, the case number would resemble 14-1234-EL-ACP.

    For questions about reserving a case number and filing documents, the Commission’s Docketing Division can be reached at (614) 466-4095.  
    http://www.puco.ohio.gov/puco/index.cfm/docketing/
  2. FILING COMPANIES:  Who needs to comply with the AEPS filing requirements?  Staff would expect reports from all of the Ohio electric distribution utilities, as well as the competitive retail electric service (CRES) providers who have retail electric sales in Ohio during the compliance year – 2013, in this instance.  Companies that do not take title to the electricity (i.e., aggregators and power brokers) and only serve as pass-through entities in electricity supply transactions would not have AEPS compliance obligations and therefore would not be required to satisfy the filing requirements.
  3. CONFIDENTIALITY:  Companies are not precluded from seeking confidential treatment of information for which they believe such treatment is appropriate.  However, Staff would note that the Commission has typically not recognized historical sales figures as warranting confidential treatment given that such sales data is available from public sources such as the CRES annual reports filed with the Commission.  In addition, because the compliance obligations may be easily derived from publicly available information (i.e., sales data and the statutory benchmarks), the Commission has held that the obligations do not constitute a trade secret.[1]  This conclusion may change, however, if a company’s compliance baseline relies upon projected sales data.
  4. ANNUAL COMPLIANCE STATUS REPORT:  This compliance worksheet was developed by Staff for internal review purposes.  However, it may be useful for your company in preparation of its AEPS annual compliance status report for the 2013 compliance year.  Your company is not required to include the compliance worksheet in its filing, but that is an option.

    If using the compliance worksheet, your company should insert data in the blue shaded boxes (as applicable).  The remaining cells should auto-calculate.  However, you should still independently verify the accuracy of the calculations.
  5. BASELINES:  The calculation of the baseline has been one of the areas in which errors have been noted in past filings, especially for companies with fewer than 3 years of retail electric sales history in the state.  Section 4901:1-40-03(B), OAC, addresses the baseline computation methodologies. 

    The table below shows examples of a few scenarios with differing sales histories.  This example is for the 2013 compliance year, so Staff would be looking to a company’s actual Ohio retail electric sales for 2010, 2011, and 2012 when calculating the baseline.

    Scenario A: The most straight-forward, simply averages the annual sales from the 3 preceding years.

    Scenario B: Sales during 2 of the 3 preceding years, the baseline is calculated as the average of those 2 years.

    Scenario C: Sales during 1 of the preceding years, the baseline is the sales from that single year.

    Scenario D: No sales during the 3 years preceding the compliance year, but the company then becomes active during the compliance year; the baseline consists of a reasonable projection of sales for a full calendar year.  Note: many companies have sought (and been granted) a waiver of this requirement, instead proposing to use their actual sales from the compliance year.
     

 

Scenario A

Scenario B

Scenario C

Scenario D

2010 Sales – MWH

150,000

0

0

0

2011 Sales – MWH

200,000

50,000

0

0

2012 Sales – MWH

250,000

150,000

75,000

0

BASELINE – MWH

200,000

100,000

75,000

<projection>

Rule Reference

(B)(1) or (2)

(B)(2)(a)

(B)(2)(a)

(B)(2)(b)