Summary
This 8-K filing from American Electric Power Company, Inc. (AEP) and its subsidiaries, Columbus Southern Power Company and Ohio Power Company, reports on a significant regulatory development in Ohio. The Public Utilities Commission of Ohio (PUCO) has directed AEP to remove provider of last resort (POLR) charges and certain environmental carrying costs from customer tariffs, effective June 1, 2011. This decision stems from a remand from the Ohio Supreme Court regarding AEP's electric security plan. AEP estimates that these changes will result in a reduction of approximately $57 million for Columbus Southern Power Company and $58 million for Ohio Power Company for the period of June 1, 2011, through December 31, 2011. The company has filed a motion for rehearing with the PUCO, arguing for a proper remand proceeding before any rate changes are implemented. Alternatively, AEP requests that the disputed rates be collected subject to refund, pending the final outcome of the remand.
Key Highlights
- 1PUCO orders AEP to remove POLR charges and environmental carrying costs from customer tariffs.
- 2Estimated financial impact of rate changes: ~$57 million for Columbus Southern Power Co. and ~$58 million for Ohio Power Co. for the period June 1, 2011 - December 31, 2011.
- 3Decision is a result of a remand from the Ohio Supreme Court concerning AEP's electric security plan.
- 4AEP estimates these charges were previously approved to recover incremental carrying costs on past environmental investments and a POLR charge.
- 5AEP has filed a motion for rehearing with the PUCO, seeking a formal remand proceeding.
- 6AEP requests rates be collected subject to refund if a timely PUCO decision on the remand is not possible.