Update: AEP, PUCO Staff, Sierra Club, OEG, and a few other parties filed a settlement seeking Commission approval of the PPA proposal. The settlement also seeks approval of several new features that were not originally included in AEP’s application. As proposed, the settlement would allow AEP to collect costs through the PPA rider and request to extend its recently-authorized electric security plan (ESP) through May 31, 2024. AEP would receive a fixed return on equity of 10.38% for the duration of the PPA rider. The rate design for cost recovery of the PPA rider would be billed through a per kWh charge for each rate class/voltage level. The initial rider rate would begin as a $4 million credit, but would be reconciled the next quarter for actual costs. Under certain conditions, AEP may be obligated to provide a customer credit of $10 million for 2020/2021, $20 million for 2021/2022, $30 million for 2022/2023, and $40 million for 2023/2024. AEP would extend the IRP tariff and credit through May 31, 2024 for current IRP tariff customers as well as 250 MW of additional interruptible load for signatories that qualify under the tariff as well as members of non-opposing parties; AEP also would seek to increase the IRP credit to $9/kW-month starting in June 2018 and throughout the extended ESP. Fifty percent of the EE/PDR rider costs for transmission and sub-transmission voltage customers would be transferred to the EDR rider through May 31, 2024 and 50% of the IRP credits from the EE/PDR rider would be transferred to the EDR rider. AEP commits to retire, refuel, or repower Conesville Units 5 and 6 to 100% natural gas by December 31, 2029; AEP commits to do the same for Cardinal Unit 1 by December 31, 2030. Projects totaling 500 MW of wind energy and 400 MW of solar energy would be developed by AEP if AEP receives full cost recovery through the PPA rider. AEP has offered just one piece of testimony in support of the settlement.

The Commission has established a very accelerated procedural schedule to address the terms of the settlement. Discovery must be served by December 24, 2015, testimony in opposition to the settlement must be filed by December 28, 2015, and the evidentiary hearing is scheduled to begin on January 4, 2016. Several parties opposed to the settlement have filed a motion seeking to extend the procedural schedule by an additional three weeks. OMA Energy Group has filed a letter in support of this motion wherein it urged the Commission to afford adequate preparation time and due process to the parties.