GAHANNA, Ohio, Feb. 25, 2014 – The Public Utilities Commission of Ohio (PUCO) ruled today on the Electric Security Plan (ESP) of AEP Ohio, a unit of American Electric Power (NYSE: AEP). According to company officials, the order provides for continued support of infrastructure investment efforts and recognizes the legality of a regulated utility establishing a Power Purchase Agreement (PPA). The order, however, delays a decision on whether the company can include its Ohio Valley Electric Corporation (OVEC) entitlement in the agreement.
“Although we have yet to complete our review of the order by the PUCO, I am pleased to see the Commission’s continued support of AEP Ohio’s reliability improvement efforts and investments,” said Pablo Vegas, AEP Ohio president and chief operating officer. “By allowing our distribution investment work and efforts to maintain vegetation around our facilities to continue, the PUCO recognizes the benefits this work provides to our customers through continued and improved reliability.
“We also agree with the Commission’s interpretation of the law in that regulated utilities can legally establish PPAs,” added Vegas. “We are disappointed that the Commission delayed any decision to include AEP Ohio’s ownership of the OVEC power plant. Further delays in deciding this issue will postpone our customers’ ability to take advantage of the financial benefits of what we proposed. We will work with the PUCO to address their outstanding issues with our proposal.”
AEP Ohio filed this ESP in December 2013 for rate adjustments beginning in June 2015. The plan is proposed to begin on June 1, 2015, and last through May 31, 2018. Rate impacts of this order are yet unknown as the company has had to wait on the PUCO ruling in order to move forward with its auction schedule for generation supply. This filing also fulfilled the Commission’s objective for a full transition to market.
AEP Ohio delivers electricity to nearly 1.5 million customers of AEP’s subsidiary Ohio Power Co. in Ohio. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power. News and information about AEP Ohio can be found at AEPOhio.com.
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a 40,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east and north Texas). AEP’s headquarters are in Columbus, Ohio. News releases and other information about AEP can be found at AEP.com.