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Single Retail Supplier To Receive Ability To Use Supplier Consolidated Billing Under AEP Ohio Settlement

Settlement Also Includes $100 Million To Former Default Service Customers; Change In How Non-Market Transmission Rates Calculated

December 22, 2016

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

A global settlement concerning several remanded AEP Ohio proceedings would allow a single additional retail electric supplier to utilize supplier consolidated billing on a pilot basis

Specifically, under the settlement, which addresses certain AEP Ohio deferral, phase-in and fuel cost cases, AEP Ohio agrees to work with PUCO Staff and Constellation to determine the parameters of a 2-year Pilot Supplier Consolidated Billing Program for Constellation as a participating CRES provider.

The methodology to govern this pilot shall be established no later than six months from an order from the Commission approving the global settlement or a final order by the Commission approving the stipulation in Case No. 14-1693-EL-RDR, et al. (where a supplier consolidated billing pilot limited to three retail suppliers has been approved), whichever is later.

Similar to the supplier consolidated billing pilot open to three retail suppliers who signed a settlement concerning AEP Ohio's PPAs, Constellation's participation in the pilot would be limited to 5,000 customers of Constellation for the first 6 months of active implementation.

Based upon bi-annual review and approval by Staff, AEP Ohio and Constellation, the customer participation cap shall be incrementally increased by 5,000 customers each six months not to exceed 20,000 customers of Constellation over the two year term of the pilot program.

Because costs related to AEP Ohio's implementation of the pilot supplier consolidated billing program under this global settlement and the mirror pilot approved in Case No. 14-1693-EL-RDR, et al. will overlap, Constellation will pay 1/3 of 50% of the costs related to AEP Ohio's implementation of both pilots, the settlement provides

The supplier consolidated billing pilot approved under Case No. 14-1693-EL-RDR is open to the retail suppliers signatory parties to a PPA settlement which included Direct Energy, FirstEnergy Solutions, and IGS Energy

Other terms of the global settlement includes a $100 million refund to return a portion of amounts that were paid by standard service offer customers from August 2012 through May 2015 for OVEC/Lawrenceburg purchases.

This FAC refund is to be returned as a one-time credit to those SSO refund customers who remain distribution customers of AEP Ohio

The global settlement would also accelerate a pilot concerning how the nonbypassable Basic Transmission Cost Rider (BTCR), which collects non-market-based transmission charges, would be calculated, with the pilot using single coincident peak rate design for certain customers

More specifically, the demand rate will charge the customer based on the customer's demand during the single zonal transmission peak as defined by the PJM Open Access Transmission Tariff (i.e., the customer's individual NSPL tag), and the rate shall be calculated in two steps. First, the demand-allocated portion of the revenue requirement from Schedule C-3 of AEP Ohio's most recently-approved BTCR annual update shall be divided by twelve times AEP Ohio's total load at the time of AEP zonal peak (NSPL), from Workpaper Schedule C-3 of the company's most recently-approved BTCR annual update. Second, that rate shall be adjusted for losses to the appropriate voltages for billing consistent with AEP Ohio's most recently approved BTCR annual update. The energy rate shall be equal to the BTCR energy rate that would otherwise apply to the customer absent the pilot program.

The BTCR pilot shall include 19 customer accounts, allocated as follows: 5 for Ohio Manufacturers Association Energy Group members, 3 for Direct Energy public school customers, 4 for Industrial Energy Users-Ohio members, 5 for Ohio Energy Group members and 2 for an IGS Energy customer

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