The Pubilic Utilities Commission of Ohio (PUCO) approved a modified version of AEP Ohio's Electric Security Plan (ESP) on August 8, 2012. The revised plan establishes generation rates through May 31, 2015 and sets AEP on a path toward a separating it's generation business from distribution and transmission.
“We are confident that this modified ESP will result in the outcome the General Assembly intended under both Senate Bill 3 and Senate Bill 221, and best represents a balance in the interests of both consumers and AEP-Ohio,” said PUCO Chairman Todd A. Snitchler. “Today’s order leads us towards more robust competition in the state of Ohio in less than three years. It also provides mechanisms for consumer protection, and maintains that AEP-Ohio continues to provide adequate, safe, and reliable service to its customers.” (PUCO Press Release)
In response to the PUCO decision, AEP filed revised tariff sheets (the official documents that detail rates charged to customers) on August 16, 2012. In filing the 382 page document, AEP Ohio president and chief operating officer Pablo Vegas said, "“We have worked hard to minimize bill impacts on customers as we transition to a competitive market model. Customers will benefit during this transition by having fixed generation rates and a greater ability to shop for a competitive price on their power generation service, and by having AEP Ohio take part in energy supply auctions.” (AEP Press Release)
The decision will have broad implications for ratepayers in AEP Ohio's service territory. Virtually all classes or ratepayers will see some increase in rates -- some more than others. In addition, changes in incentives for shopping retail generation services and rate structures may mean that a change in energy acquisition and/or management practices could minimize the financial impact this decision could have on AEP customers.
Tipping Point Energy is currently analyzing the new plan and is prepared to work with AEP Ohio customers to understand their new tariff structures and opportunities to effectively manage their energy expenses.