On May 15, 2013, AEP-Ohio filed an application with the Public Utilities Commission of Ohio (PUCO) requesting significant increases to their Energy Efficiency and Peak Demand Reduction Cost Recovery Rider (Rider EE/PDR). AEP-Ohio has requested that these new rates take effect on August 1, 2013. The table below lists the proposed EE/PDR rates and compares them to the current rates, which have been in place since June 2010.
Due to the passage of Senate Bill 221, aggressive energy efficiency mandates have been placed on Ohio’s distribution utilities. Because utilities remain revenue neutral, they pass on the costs associated with these mandates to customers. The proposed rates reflect AEP-Ohio’s anticipated costs to comply with these mandates. These rates are expected to continue to grow as the utility’s cost of compliance with the mandates increases over time. Mercantile customers (i.e., non-residential customers who use more than 700,000 kWh per year or are part of a national account) have the ability to request exemption from the EE/PDR charge by completing energy efficiency projects.
The Ohio Senate Public Utilities Committee is currently reviewing the applicability and effectiveness of the mandates in Ohio’s current energy and economic market. We encourage you to continue to reach out to your elected officials in support of this review.