 AEP Ohio has filed its Electric Security Plan (ESP) with the Public Utilities Commission of Ohio (PUCO). The ESP filing is required under the provisions of the recently-enacted Ohio Senate Bill 221 (S.B. 221) that governs the operations of investor-owned electric utilities in the state. “By filing only an Electric Security Plan, we are seeking to balance the financial impact of rising electricity prices for our customers and the health of the Ohio economy with the future viability of our company,” said Michael G. Morris, AEP chairman, president and chief executive officer. “The cost of every component of the electric utility business is increasing dramatically and is reflected in higher electricity costs across our nation. Gov. Strickland, the Ohio Legislature and the Public Utility Commission of Ohio wisely putting in place an energy plan that includes mechanisms that will allow us to continue providing reasonably priced electricity in Ohio while at the same time continuing to make the critical investments necessary to provide reliable electrical service, improve the environment and support the Ohio economy. Moreover, filing an ESP instead of a market rate option will protect customers from substantial increases, stabilize rates and provide certainty regarding retail electric service. “ AEP Ohio’s plan proposes electricity rates for the company’s Ohio customers through 2011 and if approved as filed, would result in total electricity rate increases of approximately 15 percent per year for the next three years. The plan includes increases in base rates for generation and distribution, as well as separate trackers for collecting fuel costs and required investments in energy efficiency and demand-side management programs. AEP Ohio anticipates a decision from the PUCO on its plan by the end of the year. New rates would go into effect beginning Jan. 1, 2009. Related Material:
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