HomeOctober 27, 2011
Customer Migration Greater than Forecast by AEP Ohio
Copyright 2011 EnergyChoiceMatters.com.
Customer switching in Ohio accounted for a reduction in gross margin of $37.4 million at AEP Ohio during the third quarter of 2011, AEP disclosed in reporting earnings yesterday.
As has been the case for the last year or so, the majority of the reduced gross margin ($32 million) was at Columbus Southern Power, where the commercial class continues to see the most migration.
Year-to-date gross margin lost has been $83 million at AEP Ohio, with $75 million of that total lost at Columbus Southern Power.
Executives also said that migration during the third quarter continued at a pace faster than previously forecast.
Year-to-date lost load at AEP Ohio is 8.3%.
AEP said that sales of capacity freed up due to migration, off system-sales of energy, and customer acquisitions by its competitive retail unit, offset more than 75% of the lost retail margin at AEP Ohio.
In terms of overall ongoing earnings, gross customer migration at AEP Ohio negatively impacted earnings by $33 million for the quarter.
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