Settlement Would Allow Utility To Develop Renewable Generation, Enter Contract With Retail Customer For Such Generation

A settlement signed by numerous parties in AEP Ohio's electric security plan proceeding would affirm AEP Ohio's authorization, from a prior PUCO order, to develop new renewable generation, but would add the ability for AEP Ohio to enter into a contract (known as a reasonable arrangement) with a retail customer for such new generation

Specifically, the stipulation would allow AEP Ohio to seek PUCO approval for reasonable arrangement(s) under R.C. 4905.31 as follows. For a renewable project owned by an AEP affiliate or other non-affiliate entity and operated by AEP Ohio (through a long-term PPA by AEP Ohio under a 900 MW commitment established under a prior case), AEP Ohio may propose that some or all of the project's output be purchased through a bilateral contract with a retail customer conditioned upon approval by the Commission as a reasonable arrangement under R.C. 4905.31.

Prior to becoming effective, such a reasonable arrangement proposal must be approved by the Commission under R.C. 4905.31. If approved, the resulting revenues from such reasonable arrangement(s) will be credited against the cost for recovery in lieu of revenues being applied if the output were liquidated in the wholesale market, as would be the case for other renewable projects developed under this provision that are not subject to a reasonable arrangement

The settlement was signed by, among other parties, PUCO Staff, AEP Ohio, the Retail Energy Supply Association, IGS Energy, Ohio Partners for Affordable Energy, and several manufacturing groups