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PUC Doesn't Rule On Whether Utilities Are Required To Divest Generation Interests Under New Law
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In approving the application of AEP Ohio (Ohio Power) to transfer its interests in Ohio Valley Electric Corporation (OVEC) to a non-utility affiliate, the PUC of Ohio declined to address whether recent HB 15 requires utilities to divest any generation or generation interests
As previously reported, HB 15 changed the definition of electric distribution utility to mean, "an electric utility that supplies at least retail electric distribution service and does not own or operate an electric generating facility."
AEP Ohio had cited this provision in applying at PUCO to assign its obligations under the OVEC Inter-Company Power Agreement (ICPA) to AEP Ohio’s parent company, American Electric Power Company, Inc. (AEP Parent), with AEP Parent then immediately assigning its obligations to AEP Genco.
However, as previously reported, Dayton Power and Light argued that HB 15's language does not require electric distribution utilities to divest their OVEC interests
Among other things, DP&L argued that the state's electric distribution utilities do not 'own or operate' OVEC. See more details here
PUCO declined to address the question of whether HB 15 requires divestiture of OVEC interests, stating that answering such question is "unnecessary" in adjudicating AEP Ohio's application
PUCO also declined to address whether HB 15, and its language which defines an EDU as not owning or operating an electric generating facility, supersedes PUCO's existing rule governing the consideration of any utility generation divestiture application (Ohio Adm.Code 4901:1-37-09)
OVEC has not been used for default service since full auction-based SSO was implemented, and OVEC costs had been billed on a nonbypassable basis. However, HB15 relieved customers of these nonbypassable charges
Cases 12-1126-EL-UNC, 25-1039-EL-ATR
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December 17, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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