AEP Ohio seeks delay to base rate increases until mid-2021
While submitting a request to update base rates this week, AEP Ohio also requested that the Public Utilities Commission of Ohio (PUCO) delay the case’s procedural schedule due to the COVID-19 pandemic and push back any increases until mid-2021.
“The delay we have requested will give the economy more time to bounce back before any rate changes go into effect,” AEP Ohio President and COO Raja Sundararajan said. “Reliable electric service has been critical to helping our customers during the state’s stay-at-home period. Our work to replace and upgrade aging equipment and trim trees that could fall into power lines has helped us keep the lights on. The rate case will ensure that we are able to continue to invest in these reliability efforts and also offer our customers new services.”
A new adjustment would result in a $2.20 per month increase for the typical household. AEP was required to initiate the rate process under a 2018 agreement with regulators and other groups. Under the proposal submitted, reliability improvements for its nearly 44,000 miles of distribution lines would take front stage. This would include equipment replacement, preventative maintenance, and tree trimming operations.
In the filing, AEP also proposed ideas for streetlight and area light updates with more efficient and customizable LED fixtures, offering municipalities additional options for paying to convert overhead service into underground service, allowing residential customers to pay bills with credit cards and not face processing fees for it, as well as enhancing the company’s Demand Side Management (DSM) efforts aimed at reducing customer energy bills.
AEP Ohio also intends to invest in programs such as its gridSMART program technology to reduce peak demand, in incentives to up the efficiency and load management for commercial and industrial customers, and its Electric Vehicle Charging Incentive program. The latter, recently approved by PUCO, has already brought nearly 200 stations into operation. The DSM plan also considers this, with programs to guarantee the electric grid can handle the extra demand such charging will bring.
