AEP subsidiaries are "selling" assets to each other in another corporate shell game. This article says that AEP-Ohio will be selling generation it owns in WV to fellow subsidiary Appalachian Power. Meanwhile, they fired up their new gas-fired plant located in Ohio, which will be paid for, at least in part, by Appalachian Power customers in WV. Confused yet? AEP hopes so!
In this article, the reporter was treated to an explanation of AEP's "power pool" (probably because she asked tougher questions).
What's in neither article is the promised merging of AEP WV sudsidiaries Appalachian Power and Wheeling Power, which was promised to the WV-PSC in AEP's last rate case.
Why all this confusion? Because Ohio is deregulating generation and AEP is trying to keep their costly generation behemoths in a regulated environment. In a deregulated, or market-based, market, costly upgrades and other costs of running these plants are wrapped into the cost of the generation bid into market. In a regulated state, these "extra" costs are covered by ratepayers of subsidiaries who "own" these assets.
Bottom line: It's all about AEP making even MORE money at your expense!
In this article, the reporter was treated to an explanation of AEP's "power pool" (probably because she asked tougher questions).
What's in neither article is the promised merging of AEP WV sudsidiaries Appalachian Power and Wheeling Power, which was promised to the WV-PSC in AEP's last rate case.
Why all this confusion? Because Ohio is deregulating generation and AEP is trying to keep their costly generation behemoths in a regulated environment. In a deregulated, or market-based, market, costly upgrades and other costs of running these plants are wrapped into the cost of the generation bid into market. In a regulated state, these "extra" costs are covered by ratepayers of subsidiaries who "own" these assets.
Bottom line: It's all about AEP making even MORE money at your expense!
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