AEP Reports Negative Impact from Customer Switching in Ohio

The loss of generation-related margin due to customer switching at AEP Ohio negatively impacted AEP's first quarter earnings by about $50 million, versus the year-ago, AEP reported Friday.

This negative impact was partially offset by the allowance of certain capacity cost deferrals, amounting to a favorable $34 million versus the year-ago.

As of March 31 of this year, approximately 53% of customer load at AEP Ohio had switched to competitive supply, with about 3% having provided notice of intent to switch. As of December 31 of last year, those numbers were about 51% and 3%, respectively.

AEP reiterated its strategy of hedging 30% of the 9,000 MW of to-be newly unregulated generation separated from AEP Ohio (after retirements) through competitive retail sales.