Perhaps Ohio consumers should have been airing their own TV commercials in Ohio about "shopping" and AEP's capacity charges, because consumers are the big losers in today's PUCO decision.
"The Commission’s decision establishes a cost-based capacity price of $188.88 per MW-day but requires AEP to charge competitive electric suppliers at a lower market-based capacity price, known as the Reliability Pricing Model (RPM) price. AEP is permitted to defer the difference between the adjusted RPM price and the cost-based price."
Who do you think pays the amount AEP "defers?" Consumers do.
What PUCO has done here is allow AEP to charge a higher capacity rate ($188.88), but allow FirstEnergy to pay the lower rate that they asked for ($20.01 per MW-day for 2012/2013, $33.71 for 2013/2014 and $153.89 for 2014/2015). The difference between the two prices may be "deferred" by AEP. This simply means that they book the amount of their loss in a special "deferred" account that PUCO will allow them to recover from consumers in their other rate case.
"The balanced outcome achieved in this case is based upon an extensive record that includes testimony from more than 20 parties,” PUCO Chairman Todd A. Snitchler stated."
Balanced? The only thing being balanced here are the interests of two huge corporations. Ohio consumers lose again. How long does Snitchler think it's going to take consumers to figure this out and start another "prairie fire?"
"The Commission’s decision establishes a cost-based capacity price of $188.88 per MW-day but requires AEP to charge competitive electric suppliers at a lower market-based capacity price, known as the Reliability Pricing Model (RPM) price. AEP is permitted to defer the difference between the adjusted RPM price and the cost-based price."
Who do you think pays the amount AEP "defers?" Consumers do.
What PUCO has done here is allow AEP to charge a higher capacity rate ($188.88), but allow FirstEnergy to pay the lower rate that they asked for ($20.01 per MW-day for 2012/2013, $33.71 for 2013/2014 and $153.89 for 2014/2015). The difference between the two prices may be "deferred" by AEP. This simply means that they book the amount of their loss in a special "deferred" account that PUCO will allow them to recover from consumers in their other rate case.
"The balanced outcome achieved in this case is based upon an extensive record that includes testimony from more than 20 parties,” PUCO Chairman Todd A. Snitchler stated."
Balanced? The only thing being balanced here are the interests of two huge corporations. Ohio consumers lose again. How long does Snitchler think it's going to take consumers to figure this out and start another "prairie fire?"
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