PUCO Reverses Position on AEP Rate Case

February 24, 2012 By

As reported in the Cleveland Plain Dealer today, the Public Utilities Commission of Ohio (PUCO) ruled yesterday, February 23rd, to disapprove the settlement agreement in AEP-Ohio’s rate case.  This reverses their December 14th decision to approve the settlement.  Note that IEU-Ohio was the only business group that opposed that settlement agreement.  The PUCO press release stated:

“Upon consideration of arguments raised by parties who did not sign the settlement agreement and upon becoming aware of the actual impacts of the agreeement, the Commission found that approving the agreement does not benefit ratepayers and is not in the public interest.”

The PUCO ordered AEP to return to the rates that were in effect in December 2011, until such time as a new rate plan is adopted.  By next Tuesday, February 28th, AEP must file tariffs to comply with this order.  It is unclear at this time when those rates will take effect or whether there will be any refunds of January and February charges.

AEP’s original rate application, which was filed on January 27, 2011, remains in place. The PUCO gave AEP 30 days to amend or withdraw that application.  The PUCO will allow any party to participate in the proceedings when they occur.  We encourage AEP customers to stay informed and get involved.  If you are a member of IEU-Ohio, you will be well represented in those proceedings.

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Filed Under: AEP-Ohio, IEU-Ohio, PUCO

Successful Energy Conference

February 24, 2012 By

With almost 600 attendees, the 16th Annual Ohio Energy Management Conference, which was held earlier this week in Columbus, was a huge success.  Matt Brakey, as chairman of IEU-Ohio, served as the emcee and made presentations at two workshops.  Mike Brakey was also a presenter at another workshop.  You may find the presentations on the Manufacturers’ Education Council website.

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Filed Under: Energy Management Conference, IEU-Ohio, Manufacturers' Education Council, Matt Brakey, Mike Brakey

AEP’s New Rate Plan

February 20, 2012 By

On December 14th, 2011, the Public Utilities Commission of Ohio (PUCO) issued an order that:

  • Modified and approved the settlement filed on September 7th in AEP’s electric security plan (ESP) proceeding;
  • Approved the settlement in AEP’s distribution rate case; and
  • Approved the proposed merger of Ohio Power and Columbus Southern Power to form AEP-Ohio.

New rates took effect on bills rendered on or after January 1, 2012.  Some customers saw large increases in their January bills.  The impact varies by rate schedule and load profile.  For more information, see this Columbus Dispatch article from Sunday, February 19th: First AEP plan aided smaller businesses, and this editorial from today’s Akron Beacon Journal: Consumer unfriendly.

As noted in the article, the Industrial Energy Users – Ohio (IEU-Ohio) was one of the few organizations that raised objections to the rate proposal last year, but these were largely ignored.  The PUCO staff generally agreed with IEU-Ohio, but other industrial groups supported the AEP proposal to put most of the rate increases on smaller businessses.  Now that some small businesses are seeing “rate shock”, the PUCO is reconsidering its approval of the rate plan.  The AEP rate plan is sure to be a hot topic at this week’s Ohio Energy Management Conference in Columbus.  Stay tuned!

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Filed Under: AEP-Ohio, Energy Management Conference, IEU-Ohio, PUCO