For Immediate Release
Contact: Matt Schilling
614 | 466 7750
COLUMBUS, OHIO (Aug. 8, 2012) – The Public Utilities Commission of Ohio (PUCO) today approved a modified electric security plan (ESP) for AEP-Ohio that establishes generation rates through May 31, 2015. The plan also sets a schedule for AEP to expeditiously transition to a competitive market, in which generation rates will be fully set through a competitive bidding process beginning in June 2015.
“We are confident that this modified ESP will result in the outcome the General Assembly intended under both Senate Bill 3 and Senate Bill 221, and best represents a balance in the interests of both consumers and AEP-Ohio,” said PUCO Chairman Todd A. Snitchler. “Today’s order leads us towards more robust competition in the state of Ohio in less than three years. It also provides mechanisms for consumer protection, and maintains that AEP-Ohio continues to provide adequate, safe, and reliable service to its customers.”
During the term of the ESP, base generation rates will be frozen at current levels. AEP will conduct an energy-only auction for 10 percent of its standard service offer (SSO) load upon the completion of its pending corporate separation plan. On June 1, 2014, AEP will conduct an additional energy auction for 60 percent of its SSO load. A third energy auction will be held by Jan. 1, 2015 for 100 percent of AEP’s SSO load. Under the terms of the order, AEP is directed to file with the PUCO a detailed competitive bidding process by Dec. 31, 2012.
Snitchler added, “This order more evenly distributes the rate impacts among customers. It also provides a relief valve ensuring that no ratepayer’s bill will be impacted more than 12 percent based on the ESP order, as well as providing AEP-Ohio financial stability.”
In order to further protect consumers, the Commission also established a significantly excessive earning test threshold of 12 percent return on equity.
AEP is ordered to file tariffs consistent with today’s order by August 16, to become effective with bills rendered September 1. The Commission opinion and order issued today in case number 11-0346-EL-SSO will be available online at www.PUCO.ohio.gov. Click on the link to Docketing Information Center and enter the case number.
The Public Utilities Commission of Ohio (PUCO) is the sole agency charged with regulating public utility service. The role of the PUCO is to assure all residential, business, and industrial consumers have access to adequate, safe, and reliable utility services at fair prices while facilitating an environment that provides competitive choices. Consumers with utility-related questions or concerns can call the PUCO Call Center at (800) 686-PUCO (7826) and speak with a representative.
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