AEP Ohio plans $2.2B of reliability improvements over six years in Electric Security Plan filing

In an Electric Security Plan (ESP) application filed with the Public Utilities Commission of Ohio this week, AEP Ohio signaled its intentions to invest $2.2 billion in reliability-focused projects over a six-year term, with work to update or replace old equipment and reconfigure power flow.

As filed, the plan would result in monthly customer bill increases of approximately 2 percent, or $4, over each year of the ESP term.

For example, investigations from the company identified 247 circuits where its customers experienced five or more outages annually over the last three years. Therefore, AEP Ohio will work to either improve those numbers through equipment upgrades, rebuilds, or reconfiguration, but the issue goes well beyond that. There are 350 transformers, 475 breakers, and 560 regulators in substations throughout Ohio expected to reach the end of their serviceable lives within the next decade.

“Our plan focuses on meeting our customers’ expectations,” AEP Ohio President and COO Marc Reitter said. “We have already invested in reliability improvements, and that work is producing benefits for customers. But we need to do more focused work, and we need to do it more quickly as we plan for rapid economic growth, increasing customer expectations and hardening the grid to withstand stronger storms. More than 5,500 miles of power lines and hundreds of pieces of substation equipment will be replaced under the proposal. We understand the electric service we provide is essential in our customers’ lives, and we believe the planned investment under our proposal will deliver significant benefits.”

The ESP proposed more than equipment investments, though. It also pushed programs meant to help low-income customers become more energy efficient, such as a senior discount program, along with a Community Resiliency Pilot program to test the use of a backup generator for when power lines cannot power an area and the rollout of batteries at substations to supply power during repair periods. Further, for underserved areas, AEP Ohio proposed offering internet providers access to its fiber optic network to provide broadband service.

The company also seeks expansions of its Electric Vehicle Charging Program. So far, the program has led to more than 350 charging stations installed by local governments, businesses, and multi-unit housing in AEP Ohio’s service area. Program growth would maintain similar structures and incentivize residential customers who agree to charge vehicles during periods of low demand.