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Under Settlement, AEP Ohio Drops Earlier Proposal To Use Owned Generation To Serve Default Service Load

August 28, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

As part of a settlement among numerous parties in the utility's electric security plan case, AEP Ohio has dropped an earlier proposal to use its entitlements in the Ohio Valley Electric Corporation (OVEC) generation to serve Standard Service Offer (SSO) customers (Case 16-1852-EL-SSO)

Under the settlement, AEP Ohio will retain the status quo recovery of OVEC costs through the non-bypassable PPA Rider through the extended ESP III term, which will run through May 31, 2024. Currently, products from OVEC are sold into the wholesale market, and are not used for SSO service.

With the stipulation maintaining the status quo for OVEC, default service would exclusively be supplied through full requirements contracts procured via competitive auction, with, generally, one-third of the load served on 12-month contracts; one-third on 24-month contracts, and one-third on 36-month contracts

The settlement was signed by, among other parties, PUCO Staff, AEP Ohio, the Retail Energy Supply Association, IGS Energy, Ohio Partners for Affordable Energy, and several manufacturing groups

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