PUCO Revokes AEP Settlement

Good news is out for those with small businesses in the AEP Ohio service territory. The Public Utilities Commission of Ohio (PUCO) has revoked the Electric Security Plan settlement which it had originally agreed upon in December of last year.

“Our decision effectively hits the reset button on AEP’s electric security plan, allows us to start over from the beginning, ensure that we have a complete picture of any proposal, and balance the interests of all customers and the utility,” Chairman Todd A. Snitchler stated. “Ohio remains committed to continuing down the path towards fully competitive markets.”

The result of this decision means that AEP has been ordered by the PUCO, as mandated by Ohio law, to return its rates to levels similar to those effective in December of 2011. Until a new rate plan is agreed upon between the PUCO and AEP, those are the rates which will remain in effect.

The PUCO states that the decision to revoke the settlement was based upon the agency becoming aware of the actual impacts of the agreement and arguments raised by parties who did not sign the agreement. Finding that the settlement as agreed upon "does not benefit ratepayers and is not in the public interest" the PUCO took the action of revoking the settlement.

AEP Ohio now has 30 days to amend or withdraw the underlying application (rate case) which was filed on January 27, 2011. That rate case is now reopened and any and all parties may participate in the proceedings. The PUCO will issue a new procedural schedule once it has received AEP Ohio's response. AEP Ohio also has the option of withdrawing the current application and filing a new one. We'll keep you posted as developments occur.

Electric Prices Continue to Increase Even in Bad Economy

Many Americans and American businesses have been feeling the pinch of the recession and extended economic downturn. Every increase in prices from fueling up our cars to the cost of groceries is making it that much more painful. AEP residential and commercial customers in Ohio can add their electric bills to that list. From December 2011 to January 2012 residential rates of AEP's Columbus Southern Power customers rose 4 percent and AEP's Ohio Power customers by 5 percent. Worse yet, small business (commercial) customers are seeing even higher increases.

These increases are part of a negotiated settlement between AEP and the PUCO on AEP's most recent rate case. This won't be the last, nor the biggest of the increases, covered by the settlement which sets AEP's electric rates for Ohio customers between this year and 2016. In the coming weeks those of us here at the ESP blog will feature a series of articles breaking down the specifics of the rate case and what AEP Ohio customers can expect as a result.

Tip of the Week 11-08-2011

In many states, including Ohio, businesses and home owners have the right to choose their electric service provider. Depending on location, electric consumption, and competitiveness in a market area consumers have the potential to save between 8% and as much as 30% off of their current electric bills. For more information visit the PUCO , Ohio Consumers Council , or contact us by phone: (614) 495-3700 or email: info@energysmartpartners.com