Energy Choice
                            

Matters

Archive

Daily Email

Events

 

 

 

About/Contact

Search

Ohio Staff Supports AEP Alternative Proposal for Rate Mitigation

February 25, 2014

Email This Story
Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

Staff of the Public Utilities Commission of Ohio have recommended approval of an alternative proposal from AEP Ohio to mitigate the impact of the transition to market-based rates on residential customers at Columbus Southern Power (CSP).

Currently, CSP residential customers have a base generation charge rate design in the winter months that includes a charge per kWh for the first 800 kWh used in a month but includes no base generation charge for any kWh above 800 kWh. Under AEP Ohio's originally proposed new rate design associated with the phase-in of market-based rates, all kWh below and above 800 kWh per month would be charged the same kWh charge. "Based on the January 10, 2014 AEP filing, these customers could experience significant increases on their winter bills as a result of the rate design of the new Capacity Rider that will be phased in from April 1, 2013 [sic] through January 1, 2015," Staff said.

To mitigate the significant increases that may occur as a result, on February 13, 2014, AEP Ohio filed an alternative rate design for the Capacity Rider for the Commission’s consideration that would reduce the impacts on the CSP residential winter customers.

Under this proposed alternative, CSP residential customers would be charged lower tail block rates (over 800 kWh) during the winter months, during the period in which 60% and 100% of SSO is served under auction-based supply (November 2014 to May 2015).

Specifically, under the original proposal, CSP RR and RR1 residential customers would have paid $0.010530/kWh under the bypassable Generation Capacity Rider from November 2014 to December 2014, and $0.017550/kWh from January 2015 to May 2015, for all kWh.

Under AEP Ohio's alternative proposal, CSP RR and RR1 residential customers would be charged $0.015096/kWh under the bypassable Generation Capacity Rider for the first 800 kWh, and $0.001755/kWh for usage above 800 kWh, from November 2014 to December 2014

Under the alternative, CSP RR and RR1 residential customers would be charged $0.024856/kWh under the bypassable Generation Capacity Rider for the first 800 kWh, and $0.003510/kWh for usage above 800 kWh, from January 2015 to May 2015

"The alternative design proposal helps mitigate the substantial increases some customers may have experienced absent the alternative design. As a result, the Staff recommends that the Commission adopt the proposed alternative rate design for the CSP Residential winter customers as proposed," Staff said.

Additionally, Staff said that AEP Ohio should continue to offer a time-based rate until the retail market matures.

"Currently, AEP has several schedules that provide for time differentiated rates for base generation charges. Time differentiated rates will be 100% phased out on January 1, 2015, and therefore, time of day rates built into the current base generation rate design will be eliminated. In its ESP III application, AEP is proposing to completely eliminate certain time differentiated rates (CPP, TOD2, and RTP, for example). However, because of the generation rate design that is being phased in beginning April 1, 2014, the base generation charge portion of these schedules will be eliminated prior to the effective date of ESP III. In addition, the Company is proposing a significant extension of its gridSMART program, including approximately 894,000 new smart meters in its service territory in Ohio. Part of the justification for this proposed rollout of smart meters is the proposition that customers will be able to observe their consumption during wholesale peak times and be able to save money by reducing their consumption during these time periods," Staff said.

"The Staff realizes that such offers may eventually be made by competitive retail electric suppliers (CRES), but to date none has been observed. Until such time the Ohio retail electricity market matures, the Staff recommends that any of the Ohio EDUs that have Commission approved smart meter rollouts be required to offer at least one time differentiated rate in each customer class with a critical peak price and/or peak time rebate reflective of the wholesale market. As a result, the Staff recommends that the following AEP schedules: in the CSP Rate Zone titled RLM, RS-ES, RS-TOD, Experimental RSTOD2, Rider DLC, RS-CPP, RS-RTP, and GS-2-TOD and in the OP Rate Zone titled RS-ES, RS-TOD, RDMS, and GS-TOD, that provide for either direct load control, energy storage, and/or time differentiated rates should be maintained. Staff and other parties should have an opportunity to fully review the bill impacts as part of the ESPIII and/or the gridSMART Phase 2 rider case proceedings of the Company before a decision is made regarding eliminating the time differentiated rates listed above," Staff said.

Case No. 13-1530-EL-UNC

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
NEW! -- Manager, Channel Sales -- Retail Provider
NEW! -- Regional Sales Manager -- Retail Provider -- PA, NY, IL, Various
NEW! -- Regional Sales Manager, Texas -- Retail Supplier -- Houston
NEW! -- Vice President of Operations -- Retail Supplier
NEW! -- Senior Business Analyst -- Retail Supplier
NEW! -- National Accounts, Sales Advisor – Commercial -- Retail Supplier
NEW! -- Commercial Energy Advisor-- DFW, PA, PJM, Various
NEW! -- Energy Analyst (aka Pit Crew Member) -- DFW
NEW! -- Sales Representative -- Retail Supplier -- Houston
NEW! -- Energy Sales Manager -- Retail Provider

Search for more retail energy careers:
RetailEnergyJobs.com


Email This Story

HOME

Copyright 2010-13 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

 

Archive

Daily Email

Events

 

 

 

About/Contact

Search