PUCO Approves Adjusted FAC Rates at Ohio Power

The Public Utilities Commission of Ohio approved higher fuel adjustment clause (FAC) rates for customers at Ohio Power, effective with bills rendered beginning with the next billing cycle of 2011 (10-3043-EL-FAC et. al.).

The new bypassable FAC rates for each class and voltage level are available on page 14 of this link.

The higher FAC rates are limited by the 6% maximum rate increase allowed under Ohio Power's electric security plan, and actual FAC rates needed for full cost recovery are in the 9¢ range (when including reconciliations of deferrals).

Columbus Southern Power did not request an increase in its FAC rates for the first quarter, but reserved the right to file for a FAC increase later in the year, subject to the 6% cap. Columbus Southern Power noted that its FAC rates would have slightly increased in the first quarter of 2011 based on current fuel projections, but did not propose any change in the FAC rate levels due to prior communication to customers of CSP's anticipation that a rate increase would not be necessary in the first quarter.