PUC Chair Hopes To Restore Three-Year Contracts For Default Service Supply

In approving results from a default service procurement at AEP Ohio during a Public Utilities Commission of Ohio meeting today, PUCO Chair Sam Randazzo said that, historically, the Commission would likely be procuring a three-year contract as part of the procurement

"The ability to fold-in a third year has been hampered, to some extent, by some ambiguity with regard to the capacity market in PJM," Randazzo said

"So hopefully that gets cleared up, and we'll be able to restore a three-year, at least a three-year, time width for purposes of this process," Randazzo said

Auction Prices

The Public Utilities Commission of Ohio approved the results from the procurement of a portion of default service (SSO) supplies at AEP Ohio for various periods beginning June 1, 2020

The SSO auction, held in November, procured 17 tranches of SSO supply for the period June 1, 2020 to May 31, 2021 at a clearing price of $40.18 per MWh. There were 4 winning bidders for the one-year product

The auction also procured 17 tranches of SSO supply for the period June 1, 2020 to May 31, 2022 at a clearing price of $42.83 per MWh. There were 3 winning bidders for the two-year product

Overall in the auction, there were 6 different winning bidders across both products.