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PATH Parents Engaged in Lover's Quarrel Freak Show in Ohio

4/17/2012

8 Comments

 
Nuke some popcorn and pull up a comfy chair, it's time for the PATH parent company freak show!  AEP and FirstEnergy are engaged in some serious bitch-slapping and hair pulling over serving customers in the quasi-deregulated state of Ohio.  AEP wants PUCO to set higher prices for the use of their distribution system to serve former customers who have switched to FirstEnergy's lower rates.

AEP has begun airing a television commercial that portrays the company as a cute, little, pig-tailed cherub selling lemonade who is cheated by by a mean, old guy in a business suit (representing FirstEnergy).  If FirstEnergy is allowed to supply electricity at lower rates, "thousands of jobs would be destroyed!"  Honestly, fellas, you make me laugh!  Watch AEP's commercial here.

According to the article in The Dispatch, Doug Colafella, spokesman for Akron-based FirstEnergy, said his company is not planning any response ads at this time.  Awww.... c'mon, li'l CoalFella, you're not going to take that lying down, are you?  Don't you want to air your own commercials showing little miss pig-tails removing her mask to reveal a mafia boss who crosses the street and demands that Mr. FirstEnergy Suit pay up for selling lemonade on "her" corner?  You've even got in-house talent so you wouldn't have to pay actors.  I would suggest any of the characters on this web page for the part, especially the one at the top of the page -- would he make the perfect "godfather," or what?

Don't get discouraged, li'l CoalFella, you can do it!
 
Just what makes that little old ant
Think he'll move that rubber tree plant
Anyone knows an ant, can't
Move a rubber tree plant

But he's got high hopes, he's got high hopes
He's got high apple pie, in the sky hopes

Sing it with me, li'l CoalFella!  I'm sure you can dig up a real winner if you just put your mind to it!

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8 Comments
JustMe
4/17/2012 03:27:26 pm

OMG! Keryn, tell the truth, you posed as an ad agency, hypnotized AEP's marketing execs then WHAM...hit the with the most utterly twisted thing they could never dream of and made the masochists think they got a prize!!!! BRILLIANT move Ker!

Reply
Da Hillbilly
4/18/2012 12:05:22 am

LOLOLOLOLOLOLOLOLOLOLOLOLOL! BOTH of these companies never cease to amuse me!

Reply
bh link
4/18/2012 12:27:12 am

So, in the TV ad, AEP accuses FE of "buying energy at unfair rates" and selling it in Ohio at lower rates than AEP charges. What does that mean? I thought economic dispatch and free markets were the gospel for all the big PJM power companies.

Is AEP saying that buying power off the PJM grid is "unfair." Is PJM saying that PJM's "market mechanisms" are "unfair"?

It is hilarious that AEP is whining about "unfair." These corporate people don't like it when they have to live in the real world instead of throwing their political and economic muscle around to always get their way. I have been engaged with a number of AEP people here in WV in the last six months, and it seems that most of them are stuck in whine mode.

Reply
bh link
4/18/2012 12:29:55 am

More on Ohio power wars: http://www.cleveland.com/business/index.ssf/2012/04/american_electric_power_invade.html

Reply
Keryn
4/18/2012 01:35:07 am

Good one, Bill! AEP bolts from the starting blocks after watching the other horses enter the home stretch... Oh, but don't feel sad for that cute little AEP minx, she's making a bundle! blog.cleveland.com/letters/2012/04/aep_unduly_profits_off_of_ohio.html

If they keep this up, electric consumers in Ohio just might save some money!

It's awful nice of them to keep us amused while we wait for the abandonment of the PATH Project, don't ya think?

Reply
bh link
4/18/2012 01:50:58 am

Here's the money quote from the blog post you linked to:

"Having initially chased the Enron model, AEP attributes its success to a 2004 "rededication" to a regulated business model, just a few years after Ohio had ushered in deregulation. Regardless, AEP's most revealing disclosure is that Ohioans are making a significant contribution to AEP's gross margin, or, more specifically, Ohioans are paying way more than their fair share.

Now pay close attention to this nugget of information, as it is imperative that Ohioans comprehend these comparisons: AEP's presentation clearly outlines that Ohioans contributed $52/mwh in 2011, while AEP's East utilities contributed $41.1/mwh and its West utilities contributed $32.5/mwh. This means Ohioans paid a 26.5 percent premium over the East and a staggering 60 percent premium over the West. Also noteworthy is that AEP's 2012 guidance has Ohioans contributing even more!"

If the blog poster had been reading AEP's quarterly investor calls the way we have the last few years, he would have seen clearly Mike Morris pointing to regulated markets as profit centers supporting AEP's adventures into speculative, but potentially higher profit, transmission gambles.

AEP knows if you keep your power plants in regulated markets, you can get guaranteed returns on equity for them and lock in the local rate payers to big revenue streams. The WV situation is just the same.

Except AEP's PATH project has blown up and OH is deregulating. No wonder I have been getting lots of visits to TPL from searches for "AEP merger". Ole' Mikey sure left a mess, while he gets to go up and down the Ohio River in his tow boat.

Reply
Keryn
4/18/2012 03:36:12 am

Why, sure, why else are they seeking to stash all their generation assets in regulated states now that Ohio is actually expecting them to comply with deregulation, to an extent. This will make APCO's electricity even more expensive when a cool one million is added to the WV rate base, along with Ohioans current share of environmental retrofits and a whole bunch of other stuff. APCO customers ain't seen nothin' yet!

*sniff* I miss Mikey... he was so predictable in his evil despot role. LDB doesn't have a clue and is not very competent in the role... it almost takes all the fun out of picking on him because he is so completely clueless. Who sold him that stupid commercial? And why did no one at AEP step back and make the observation that in whining about "unfairness" and "buying low, selling high" they're actually encouraging more customers to switch providers to take advantage of the "buying low" thing. Way to kick yourself in ass, AEP! :-)

Don't miss the Q1 2012 AEP earnings call on Friday, it's bound to be highly entertaining!

Reply
first energy
4/19/2012 04:38:15 am

Dear AEP,

Bitch, please!

Reply



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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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