Ohio Clarifies New Purchase of Receivables Program, Participation, Cost Recovery

In a rehearing order, the Public Utilities Commission of Ohio has clarified several aspects of the purchase of receivables program that was ordered to be implemented at AEP Ohio

As first reported by EnergyChoiceMatters.com, PUCO had directed implementation of a POR program at AEP Ohio as part of AEP Ohio's electric security plan, but directed that several specifics of the program be addressed in a work group.

In its original order, however, PUCO did specify that only "commodity-related charges" may be included in the POR program.

The issue of whether commodity-related early termination fees qualified as "commodity-related charges" was raised on rehearing, and PUCO offered clarification.

PUCO clarified that, "commodity related charges means charges that are directly tied to the actual cost of generation and does not include early termination fees, which are not a necessary component of generation service."

Additionally, PUCO addressed its prior direction that, "participation in the POR program by CRES providers that elect consolidated billing must not be mandatory."

Specifically, PUCO said that:

"We, thus, concluded that CRES providers should maintain the flexibility to participate in consolidated billing, without being required to participate in the POR program. We clarify, however, that it was not our intention to enable CRES providers, if they elect to participate in the POR program to include some customers but not others."

This seemingly imposes an all-in, all-out requirement on POR participation.

PUCO also clarified that implementation and administrative costs of the POR program, and mechanisms for recovery, may be addressed in the workgroup proceeding.

"We clarify ... that AEP Ohio should be permitted to recover the implementation and maintenance costs associated with the POR program," PUCO said.

PUCO further clarified that its direction that issues relating to supplier consolidated billing and AEP Ohio's switching provisions be addressed by a working group are not subject to the same deadline as the POR implementation plan, the latter of which was directed to be filed by August 31, 2015.