Update:  Based upon the PUCO’s AEP-Ohio capacity cost decision, on August 29, 2012, Duke filed an application to defer the difference between its costs and the market price for capacity and to establish a cost-based charge, pursuant to Ohio’s newly adopted state compensation mechanism.  Duke seeks approval of a new tariff designated as Rider Deferred Recovery – Capacity Obligation (“Rider DR-CO”), which will enable it to collect the deferred difference between the FZCP and its costs, like what the PUCO just authorized AEP-Ohio to do.  Specifically, Duke requests to defer over $258 per year for the next three years.

It is our recommendation that the OMA, not the OMAEG (as we do not have any OMAEG members in Duke’s service territory), intervene in this case.

Additionally, we participated in a conference call of the parties who signed the Duke ESP.  It is anticipated that the parties will file a joint motion to dismiss this case as Duke agreed in the ESP and the transition to PJM to not seek cost-based charges for capacity.  We will provide a draft of the joint motion to dismiss once we receive it.