For Immediate Release
Contact:  Matt Schilling
(614) 466 7750

PUCO order limits PPA rider impact for consumers

COLUMBUS, OHIO (March 31, 2016) – Today the Public Utilities Commission of Ohio (PUCO) modified and adopted an agreement between AEP Ohio and several signatory parties to allow AEP Ohio to implement a power purchase agreement (PPA) rider. The Commission modifications limit the impact of the PPA rider, enhance consumer protections, promote grid modernization and stabilize retail rates through May 31, 2024.

“The Commission’s order strikes an appropriate balance between consumers’ interests in cost-effective electric service and diverse stakeholder interests,” stated Chairman Andre T. Porter. “Today’s opinion and order affirms Ohio’s commitment to encourage a modernized grid and retail competition.”

The Commission’s opinion and order includes AEP Ohio’s incorporation of multiple affiliate generation facilities in the PPA rider, previously established in AEP Ohio’s electric security plan (ESP) III case. The rider is intended to act as a mechanism to stabilize retail rates in AEP Ohio’s service territory. The Commission has incorporated additional safeguards for consumers through enhanced PUCO oversight including regular audits. The Commission placed limits on the PPA rider to ensure further rate stability for consumers.

As directed by the Commission’s opinion and order, AEP Ohio will file an application to extend its current ESP through the term of the PPA rider, and to update it to include an extension of the competitive bidding process through May 31, 2024 for its standard service offer. This extension allows for heightened regulatory certainty and retail rate stability. In addition, AEP Ohio commits to expand interruptible credits and add an automaker credit for the eight-year term.

The Commission directs AEP Ohio to submit a grid modernization plan to the PUCO. Advanced technologies reinforce Ohio’s energy infrastructure, enable customer engagement, help utilities better respond to service issues, promote energy efficiency and encourage innovation in the competitive marketplace.

In order to promote a modern electric grid, including cleaner energy in Ohio, AEP Ohio commits to submit a plan for the development of 900 megawatts of renewable energy and the retirement, refueling or repowering of the power plants associated with the PPA rider.

For more information on the PUCO’s role in ESP proceedings and details of this decision, please review this fact sheet. A copy of today’s Commission opinion and order will be available at Click on the link to the Docketing Information System (DIS) and enter the case number 14-1693-EL-RDR.



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.

Subscribe and unsubscribe to the PUCO Media Release email service