Supreme Court of Ohio Deals Setback to AEP-Ohio Customers

This week the Supreme Court of Ohio denied two appeals relating to recovery from customers by the Ohio Power Company (AEP Ohio) of costs associated with the Ohio Valley Electric Corporation’s (OVEC) generating plants.

Over the appeals of OMA Energy Group and the Office of the Ohio Consumers’ Counsel, the court authorized AEP Ohio to implement a Power Purchase Agreement Rider (PPA Rider), which includes cost recovery for the OVEC generating plants, which are obsolete, uneconomic coal plants.

The court failed to recognize that the PPA Rider does not benefit customers and is counter to the state policy of avoiding anticompetitive subsidies and advancing competitive markets.

OMA-backed HB 247 is the perfect vehicle to correct the errors that occurred in this case and will protect customers from subsidizing monopoly utility companies.

Read an analysis of the decision from OMA energy counsel Kim Bojko of Carpenter Lipps & Leland. 11/28/2018