Regulatory Proceedings : Ohio

Public Utility Commission Website http://www.puco.ohio.gov

2013 Significantly Excessive Earnings Test (SEET)

Docket Number 14-875-EL-UNC
Overview On May 15, 2014 AEP Ohio filed its Significantly Excessive Earnings Test (SEET) application with the PUCO for the calendar year 2013.

Calculating the threshold in a manner consistent with how the Commission calculated it for the 2010 case, significantly excessive earnings would be determined beyond a 14.38 percent ROE threshold.

For 2013, Ohio Power’s adjusted ROE came in at 11.28 percent. This ROE falls just outside a “safe harbor” ROE provision established by the PUCO at 11.09 percent.

Consistent with previous SEET orders by the PUCO, AEP Ohio excluded off-system sales (OSS) net margins, after federal and state income tax, from the 2013 ROE calculation. Other adjustments were also made for special accounting items related to the impairment of certain OPCo generating assets and certain restructuring charges.

Electric Security Plan (ESP)

Docket Number 13-2385-EL-SSO
Overview On December 20, 2013 AEP Ohio filed an Electric Security Plan (ESP) with the PUCO. The proposal asks for continuation of several previously approved riders including the Economic Development Rider (EDR), Enhanced Service Reliability Rider (ESRR), Alternative Energy Rider (AER), Energy Efficiency/Peak Demand Reduction Rider (EE/PDR), and Deferred Asset Phase-In Rider. Updates are proposed to the Distribution Investment Rider (DIR) and the Storm Damage Cost Recovery Rider (SDRR) as well as elimination of the Transmission Cost Recovery Rider (TCRR) and Fuel Adjustment Clause (FAC).

Proposed new recovery mechanisms include: gridSMART Phase II Rider, Auction Cost Reconciliation Rider, NERC Compliance and Cybersecurity Rider, Sustained and Skilled Workforce Rider, Basic Transmission Cost Rider, Generation Energy and Generation Capacity Riders, Power Purchase Agreement Rider and Bad Debt Rider.

The filing proposes a term beginning June 1, 2015 and ending May 31, 2018. The filing seeks approval of an expedited procedural schedule with hearings in April 2014 and an order in July 2014 with rates going into effect June 1, 2015.

Procedural Schedule: Intervention Deadline 03/07/2014
Intervenor Testimony 05/06/2014
Staff Testimony 05/20/2014
Hearing 06/03/2014