AEP Reports Success in Competitive Retail Supply Business

AEP's competitive retail supplier is serving about 1.5 million megawatt-hours, AEP CEO Michael Morris said during an earnings call.

Morris reported that AEP's competitive retail supplier continues to be "aggressive" in jurisdictions other than its native affiliated area, and is seeing success.

AEP reported that 12.7% of total load at Columbus Southern Power is being served competitively, which, when annualized, is ahead of AEP's annualized forecast of 14%. However, AEP downplayed this faster migration, stating that it believes there has been more switching up-front, and that the faster migration only represents low-hanging fruit, with the migration rate slowing going forward.

The faster migration also hasn't significantly impacted AEP's prior earnings guidance, as it has seen higher than anticipated sales of capacity and energy to offset losses due to migration.

Morris also expressed confidence that the Ohio Supreme Court's recent decision on AEP's current electric security plan allows for both cost-based and formula-based POLR charges, as well as nonbypassable generation-related environmental riders.