Columbus, Ohio, March 30, 2012 — AEP Ohio, a unit of American Electric Power, will file a modified Electric Security Plan for the period of June 2012 through May 2015 with the Public Utilities Commission of Ohio.
The plan, as proposed, addresses rate increase concerns affecting certain AEP Ohio customers and provides a reasonable transition to full retail competition in Ohio.
AEP Ohio notified the PUCO March 6 of its intention to file a modified ESP by March 30 following the commission's rejection of the company's stipulated agreement Feb. 23.
The modified plan will result in rate increases on average of about 5 percent for all customers beginning in June.
Components of the filing include freezing charges on a customer's bill related to the operation and maintenance of AEP Ohio's generation facilities, excluding fuel costs; recovering deferred fuel expenses beginning in June 2013, a year later than originally authorized by the commission; implementing a retail stability rider to provide financial stability for AEP Ohio during the ESP period; and continuing a mechanism to recover distribution-related expenses, as previously included in the settlement agreement.
The plan also offers competitive suppliers two tiers of discounted prices for use of AEP's generating facilities throughout the three-year term of the ESP. The prices are proposed at levels that are known to allow suppliers to make competitive offers to customers.
If the PUCO approves the modified plan as proposed, a typical residential customer using 1,000 kWh per month would see a monthly increase of about $7.40 (roughly 5 percent) for customers in the Columbus Southern Power rate zone and $6.24 for customers in Ohio Power's rate zone in 2012.
Small businesses in the CSP rate zone with 1,000 kWh demand and 100,000 kWh usage would see an approximate 2 percent increase in their monthly electric bill. Small businesses in the Ohio Power rate zone with the same usage patterns would see a 5 percent increase.