AEP Ohio Sees 10,000 Switch Requests Since ESP Rejected; Says Headroom Still Exists at Higher Capacity Price

Some 36.7% of AEP Ohio's load has switched or the associated customers have indicated the intention to switch as of March 1, 2012, AEP Ohio said in a filing with PUCO in support of its request for relief from providing capacity to all competitive load at the RPM price.

As of March 1, 2012, the data indicates that 26.1% of the Ohio Power's connected load has switched to an alternative supplier with another 2.2% with a pending switch. An additional 8.4% of the load served by Ohio Power has provided notice to the company of their intent to switch to an alternate supplier. That means customers representing 36.7% of the company's load have switched or indicated their intent to switch, AEP Ohio said.

A breakdown of currently switched load, pending switches, and load which has provided a notice of intent to switch by customer class can be found here.

AEP Ohio said that of the switched load, 3.2 million MWh, representing 6.8% of the total Ohio Power load, switched at a capacity price of $255/MW-day, under the mechanism contained in AEP Ohio's now-rejected electric security plan.

AEP Ohio said that if PUCO requires that the RPM price should be used going forward then Ohio Power would likely have to charge the RPM price for 36.7% of its connected load, "with the added risk of more migration daily due to this decision."

"In the eleven days since the Commission's February 23, 2012 Order, over 10,000 switch requests were received. More switching is expected in the near future based on the rush to maximize opportunities on the low RPM capacity price, below Ohio Power's costs," AEP Ohio said.

However, the Retail Energy Supply Association noted that AEP Ohio has reinstated the 90 day notice requirement for most non-residential customers seeking to switch to a competitive supplier, and, therefore, load for which AEP Ohio must provide capacity at the RPM price would not exceed the current shopped load and load which has provided its notice of intent (36.7%) until 90 days from now, by which time PUCO could adjudicate either the capacity charge case, or the modified ESP. In other words, RESA said that AEP Ohio is not facing an immediate risk of significantly increased load for which it must provide RPM-priced capacity.

AEP Ohio also claimed that its headroom analysis shows that competitive providers can make offers below the AEP utilities' tariffed rates at a capacity rate of $255/MW-day, which is above the RPM price of $116/MW-day.

AEP Ohio's headroom analysis can be found here. Note that for residential customers at Columbus Southern Power, the capacity price of $255/MW-day produces negative headroom.