Ohio OCC Questions Whether AEP Ohio Bypassable Recovery of Renewable Compliance Costs Exceeding Statutory Cost Cap

The Ohio Consumers Counsel has questioned whether AEP Ohio's recovery of renewable energy compliance costs, which are recovered via bypassable Rider AER, has exceeded a statutory cost cap, and asked PUCO to direct AEP Ohio to respond to OCC information requests

The renewable statutes, R.C. 4928.64(B), 4928.64(C)(3), provides that customers shall not pay an amount for renewable energy that is more than 3% of the cost of otherwise producing or acquiring electricity.

OCC said that for the second quarter of 2017, the typical monthly renewable compliance charge at AEP Ohio was $1.31, while the charge is less than 25 cents at the other Ohio EDCs.

"The Office of the Ohio Consumers' Counsel ('OCC') is concerned that AEP Ohio may be charging consumers in excess of the legislature's 3% cap and that the charges to consumers may be otherwise unjust and unreasonable," OCC said

OCC stated, "In particular, OCC asked AEP Ohio, with respect to AEP Ohio's March 1, 2017 and June 1, 2017 [AER] filings, to 'provide calculations showing whether the cost of AEP Ohio's compliance with the renewable benchmarks under R.C. 4928.64(B)(2) exceeds the 3% cap provided by R.C. 4928.64(C)(3).' AEP Ohio objected to the requests and responded: 'The Company has not performed the requested calculations.'"