Summary
This 8-K filing from AMERICAN ELECTRIC POWER CO INC (AEP) on July 5, 2006, reports a significant development regarding the Rate Stabilization Plan (RSP) for its Ohio subsidiaries, Columbus Southern Power Company and Ohio Power Company (collectively, AEP Ohio). The Supreme Court of Ohio has vacated the Public Utilities Commission of Ohio's (PUCO) order approving the RSP and remanded the matter for further proceedings. This decision mirrors a previous ruling on First Energy's RSP, citing a lack of competitive bid generation supply options for customers as stipulated by Ohio's electric utility restructuring law. AEP Ohio has the option to request reconsideration of the Supreme Court's decision. Importantly, AEP Ohio believes it can continue to collect rates consistent with the RSP while the matter is under review by the PUCO, which is currently deliberating on how to handle the First Energy RSP remand.
Key Highlights
- 1Supreme Court of Ohio vacated the PUCO's approval of AEP Ohio's Rate Stabilization Plan (RSP).
- 2The RSP has been remanded to the PUCO for further proceedings.
- 3The Court's decision is based on the RSP not providing customers with a competitive bid generation supply option, as required by Ohio law.
- 4AEP Ohio has the right to request reconsideration of the Supreme Court's ruling within ten days.
- 5AEP Ohio believes it can continue collecting rates under the existing RSP pending PUCO reconsideration.
- 6The PUCO is currently evaluating how to address a similar remand for First Energy's RSP.