Customers to Take Competitive Supply at Indiana Michigan Power in "Near Future"

Certain customers at Indiana Michigan Power Company (I&M), an AEP company, intend to take electric service from competitive suppliers in the "near future," the Michigan PSC has been informed.

The Michigan PSC reported the development in comments concerning I&M's application at FERC to institute a formula-based charge for capacity provided to retail suppliers under the Fixed Resource Requirement (FRR), which would raise the charge from the current RPM price (see prior story)

No customers at I&M are currently on competitive supply.

The PSC told FERC that the PSC, "has been informed since it filed its notice of intervention on March 21, 2012 ... that certain Michigan customers of AEP's Indiana Michigan Power Company ('I&M') operating company intend in the near future to take service from suppliers other than I&M pursuant to Michigan's retail choice program."

The PSC did not dispute I&M's statement that, to date, the PSC has not instituted a state compensation mechanism to establish a charge for capacity provided under the FRR, which, if present, shall control.

The PSC said that it, "has not formally addressed whether or to what extent Michigan PSC might establish a compensation mechanism for FRR capacity within the meaning of Schedule 8.1, Section D.8 of the RAA for such shopping customers."

The Michigan PSC, "note[d] that any such mechanism has not been necessary to date, as there has been no retail electric shopping in the I&M Michigan jurisdiction."

The Michigan PSC, "also maintains that in the event that it wishes to promulgate an appropriate state compensation mechanism for FRR capacity, it reserves the right to do so."