As many of you are aware, on March 7, the PUCO issued an order that permitted AEP to continue its two-tiered capacity pricing mechanism until May 31. The first tier is based on RPM capacity pricing and the second tier, for shopping customers above AEP shopping caps, is $255 per MW-day. Based on the PUCO’s order we anticipated that, starting June 1, all capacity would be priced at RPM, which drops to $16.46 per MW-day on June 1.
However, yesterday the PUCO issued an entry granting AEP’s April 30th request to continue the interim capacity rates of $146 per MW-day (first tier) and $255 per MW-day (second tier) authorized by the March 7, 2012 entry. The entry authorized the interim capacity rates to continue until July 2, 2012 unless the PUCO issues an order in the proceeding.
The PUCO’s action permits AEP-Ohio to continue penalizing shopping customers by charging artificially high capacity prices. Under this capacity pricing mechanism, it will be difficult for many AEP customers to save money through generation shopping. Through our association with the Industrial Energy Users (IEU) of Ohio, Brakey Energy continues to advocate for the shopping rights of all Ohio electric customers.