AEP Reports Impact from Shopping in Ohio

Customer switching to competitive supply represented 42% of load in the AEP Ohio territory as of September 2012, AEP said in reporting third quarter earnings yesterday.

AEP also reported that about 8-9% of load is in a queue to switch, thus indicating total migration could soon reach about 50% of load.

Switching as of September 2011 had been about 10% of load.

AEP said that Ohio customer switching, and the impact of capacity cost deferrals authorized by PUCO, combined for a negative $29 million impact compared to last year's third quarter.

Year to date, customer switching, and the impact of capacity cost deferrals authorized by PUCO, negatively impacted earnings by $92 million.

Executives also reported that BlueStar Energy Services is now serving 150,000 customers, about a 29% increase "from last quarter."

AEP executives reiterated the previously disclosed BlueStar strategy of focusing on margins rather than volumes, and on focusing on markets with which AEP is familiar, particularly PJM. Executives called the Ohio market "critical" but also emphasized Illinois, Pennsylvania, Maryland.