January 3, 2014, Volume 3, Issue 7

01/03/2014

Update:  On December 30, 2013, OCC filed the testimony of James D. Williams and Anthony Yankel, as well as a motion for protective order regarding certain portions of Mr. Yankel’s testimony.  In his testimony, Mr. Williams supports OCC’s position that AEP Ohio should not collect from customers expenses for a July 18, 2012 storm, because that storm did not qualify as a major storm event.

Mr. Yankel’s testimony argues that the Stipulation filed by various parties, including OMAEG, does not represent diverse interests or benefit customers or the public interest, and violates several important and long-standing regulatory principles and practices.  Mr. Yankel further analyzes in his testimony many of the costs AEP Ohio incurred during the three storm events identified in its application to determine whether the costs were reasonable and prudent. Mr. Yankel concludes that certain costs were not reasonable or prudent, and that the PUCO should disallow AEP Ohio from collecting approximately $17 million of such costs from customers. Third, Mr. Yankel presents an allocation alternative to that presented in the Stipulation, which addresses the manner in which AEP Ohio’s costs should be collected from the various customer classes. He proposes the use of an energy allocator which does not include customer-related costs (as in the revenue method).  Mr. Yankel contends that the method OCC proposes has the advantage of being more reflective of the priority of service restoration defined in AEP Ohio’s 2012 Distribution System Service Restoration Plan. Finally, Mr. Yankel’s testimony supports the PUCO’s suggestion that the $20 million expenditure AEP Ohio is obligated to make from another case, for the benefit of customers, be used to offset a portion of the reasonable and prudent storm costs that would be collected from customers in the proceeding.

On December 31, 2013, OCC also filed notices to take depositions and for the production of documents for all persons who (1) will be called by AEP Ohio to present testimony in this case, including direct, rebuttal, surrebuttal, and any other form of testimony filed, or to be filed; and (2) all persons responsible for answering OCC’s interrogatories and/or responding to requests for production of documents upon AEP Ohio.  The depositions will take place at OCC’s offices beginning on January 9, 2014, at 10:00 a.m.

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