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PUC Staff Proposes Level for New Bypassable Adder Applicable To Default Service Rates

May 16, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

AEP Ohio has filed at the Public Utility Commission of Ohio to extend its electric security plan through May 31, 2024, which includes PUCO Staff's proposal for the level of a new adder applicable to Standard Service Offer (SSO) rates

Specifically, per a recent PUCO order, AEP Ohio's filing includes a proposal for a Competition Incentive Rider (CIR), which would be a pilot bypassable rider that is an addition to the SSO non-shopping rate, intended to incentivize shopping and to recognize that there may be costs associated with providing SSO service that are not fully reflected in the bypassable component of the SSO rate.

Per a prior stipulation, to the extent consensus was not reached on the level for the CIR, AEP Ohio was to include in its filing the level of the CIR proposed by PUCO Staff. Consensus was not reached during a collaborative, and thus AEP Ohio included Staff's recommended level in its filing.

PUCO Staff has provided an initial CIR level for inclusion in AEP Ohio's filing of $0.62/MWh.

Revenues collected from the CIR would be credited to all distribution customers.

AEP Ohio will provide an analysis in its next distribution case showing all of the actual costs required to provide SSO service which can be used to help determine whether this pilot rider should be continued and, if continued, what the level of the rider should be on a going forward basis.

Separately, AEP Ohio is proposing to collect new costs through the bypassable Auction Cost Reconciliation Rider

AEP Ohio has proposed to collect through the Auction Cost Reconciliation Rider any payments to customers with cogeneration facilities related to the COGEN schedule of the tariffs. Currently there is no recovery mechanism for those payments.

In addition, to the extent not otherwise recovered, AEP Ohio would request that any net credit paid to customers based on the net metering tariff also be included in the Auction Cost Reconciliation Rider.

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