Good news is out for those with small businesses in the AEP Ohio service territory. The Public Utilities Commission of Ohio (PUCO) has revoked the Electric Security Plan settlement which it had originally agreed upon in December of last year.
“Our decision effectively hits the reset button on AEP’s electric security plan, allows us to start over from the beginning, ensure that we have a complete picture of any proposal, and balance the interests of all customers and the utility,” Chairman Todd A. Snitchler stated. “Ohio remains committed to continuing down the path towards fully competitive markets.”
The result of this decision means that AEP has been ordered by the PUCO, as mandated by Ohio law, to return its rates to levels similar to those effective in December of 2011. Until a new rate plan is agreed upon between the PUCO and AEP, those are the rates which will remain in effect.
The PUCO states that the decision to revoke the settlement was based upon the agency becoming aware of the actual impacts of the agreement and arguments raised by parties who did not sign the agreement. Finding that the settlement as agreed upon "does not benefit ratepayers and is not in the public interest" the PUCO took the action of revoking the settlement.
AEP Ohio now has 30 days to amend or withdraw the underlying application (rate case) which was filed on January 27, 2011. That rate case is now reopened and any and all parties may participate in the proceedings. The PUCO will issue a new procedural schedule once it has received AEP Ohio's response. AEP Ohio also has the option of withdrawing the current application and filing a new one. We'll keep you posted as developments occur.
