Columbus, Ohio, January 28, 2011 — AEP Ohio, a unit of American Electric Power, filed its electric security plan with the Public Utilities Commission of Ohio for rate adjustments beginning in 2012.
The company's ESP is a comprehensive plan that proposes limited customer bill increases on generation rates, while encouraging investment in electrical infrastructure and consumer programs within the state of Ohio.
The plan provides continued support of programs to assist low-income customers with their electric bills, adds renewable energy sources to the company's generation mix, continues energy efficiency efforts and gives consumers an option to directly purchase a portion of their electricity from renewable sources.
In addition, AEP Ohio's ESP introduces the Ohio Growth Fund, a $25 million shareholder contribution designed to support economic development throughout AEP Ohio's service territory over the ESP term.
In keeping with state policy, the company's ESP establishes rates for all customer classes to more accurately reflect today's competitive market prices and pricing structures, while proposing a mechanism that would reduce rate impacts resulting from this redesigned rate structure.
In addition, the ESP filing provides an alternative long-term price option for certain industrial and commercial customers to support their continued investment in Ohio by providing price certainty for up to three years beyond the ESP period.
The components of this filing include requests to recover costs associated with closing AEP Ohio-owned generation facilities; acquiring new generation resources, including renewable capacity that AEP Ohio owns or operates for the benefit of Ohio customers; and environmental investments incurred after Jan. 1, 2009.
In its request, AEP Ohio also is asking for the PUCO to consider mechanisms to support reliability improvements, the expansion of the company's gridSMART program and new programs, including a Renewable Power Option for customers who want to source portions of their energy usage from AEP Ohio's renewable portfolio and a tariff for residential customers installing equipment to support plug-in electric vehicles
The PUCO is expected to deliver an opinion and order on the company's ESP no later than the fourth quarter of 2011.