TV Ad Backed by AEP Ohio Compares Retail Suppliers to Middle Men, Supports Cost-based Capacity Charges

Ohio Power Company (AEP Ohio) has created an organization called FairEnergyOhio.org which is running television ads opposing a mechanism under which retail suppliers would be charged the Reliability Pricing Model price for 100% of capacity provided by Ohio Power Company under its Fixed Resource Requirement plan, rather than Ohio Power Company's higher, cost-based rate, during a transition period prior to a contemplated transition to market-based default service.

Ohio Power Company's creation of the organization and use of television spots was first reported this morning by the Columbus Dispatch.

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A FairEnergyOhio.org television spot describes competitive retail suppliers as middle men, and specifically names FirstEnergy Solutions.

The television spot further says the retail suppliers "buy electricity" [emphasis added] at rates that are not fair.

The FairEnergyOhio.org website says that, "AEP Ohio is required by the state to sell some of its electricity generation to third-party suppliers in an effort to encourage competition." [emphasis added]

FairEnergyOhio.org tells visitors that, "First Energy [sic] Solutions and other suppliers are asking the Public Utilities Commission of Ohio (PUCO) for unfair and artificially low prices (referred to as capacity charges) so they can buy AEP Ohio's power, undercut AEP Ohio's rates, and still make a significant profit through their sales to customers." [emphasis added]

FairEnergyOhio.org encourages PUCO to approve a plan that allows AEP Ohio to charge retail suppliers a rate that, "covers AEP Ohio's costs to make power plants available and maintain a reliable infrastructure to ensure service."

"If fair competition and a reasonable transition don't happen, Ohioans could face market domination by one company and weakening of others, potentially leading to the loss of thousands of Ohio jobs," FairEnergyOhio.org says.