AEP Ohio Negotiating Bilateral Contracts With Ohio Customers For 900 MW Of Renewables

November 15, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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AEP Ohio filed an application, for reasonable arrangements, at the Public Utilities Commission of Ohio to implement the 900 megawatt (MW) renewable commitment previously approved by the Commission (Case Nos. 14-1693-EL-RDR, et al.), its approved ESP IV plan (Case Nos. 16-1852-EL-SSO et al.), and R.C. 4905.31 (Case No. 19-2037-EL-AEC)

As previously reported, in ESP IV, the Commission approved the creation of the Company’s nonbypassable Renewable Generation Rider (RGR) to recover costs associated with new renewable generation projects. As an additional option that is separate from the RGR, the approved ESP IV plan also includes a reasonable arrangement option that permits AEP Ohio to pursue bilateral contracts with a retail customer conditioned upon Commission approval as a reasonable arrangement under R.C. 4895.31.

"In order to minimize concerns and opposition to the Application, AEP Ohio continues to explore options that avoid utility ownership of the underlying renewable generation resource, avoid an affiliate renewable energy purchase agreement (REPA), and include the potential alternative to a nonbypassable charge," AEP Ohio said

"If ultimately granted, this Application could forge a path to successful implementation of a significant number of MWs as part of the approved commitment for AEP Ohio to develop 900 MW of renewable generation resources in Ohio, without being dependent upon the Commission making a general finding of need for the full 400 MW of solar and 500 MW of wind resources the Company is requesting in Case No. 18-501-EL-FOR," AEP Ohio said

"As part of a future Amended Application to be filed in this proceeding, AEP Ohio plans to request that the Commission approve each of the individual reasonable arrangements and concur in the conclusion that it is reasonable and prudent for the Company to enter into specific wholesale REPA(s) in support of such approved reasonable arrangements," AEP Ohio said

"The Company has already made significant progress in obtaining executed letters of intent from a group of non-residential retail customers that supports development of utility-scale renewable generation. But while AEP Ohio is proceeding deliberately with all due speed, these matters deserve a full and fair discussion with these individual customers in order to achieve mutually agreeable contracts that address the complex considerations involved. The Company plans to continue its efforts to secure as many bilateral contracts as possible within a reasonable time, before filing an Amended Application in this docket," AEP Ohio said

As previously reported, AEP had sought approval for 400 MW of utility-developed solar in a separate case. In such solar proceeding, AEP Ohio contemporaneously filed a letter stating, "This letter is intended to provide notice to the Public Utilities Commission of Ohio (Commission) and the parties that AEP Ohio has filed a reasonable arrangement application in Case No. 19-2037-EL-AEC, consistent with the 900 MW renewable commitment previously approved by the Commission (Case Nos. 14-1693-EL-RDR, et al.), Paragraph III.D.3 of its approved ESP IV plan (Case Nos. 16-1853-EL-SSO, et al.), and R.C. 4905.31. That filing does not modify the Company’s position or requests for relief in these proceedings [18-1392-EL-RDR et al.]."

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