Update:  On September 7, 2012, AEP-Ohio, the OMA Energy Group, and several other parties filed applications for rehearing requesting that the PUCO reverse or clarify numerous parts of its August 8, 2012 decision on AEP-Ohio’s ESP.  Among other things, AEP-Ohio requested that the PUCO limit the applicability of the state compensation mechanism (which essentially permits AEP-Ohio to recover $189/MW-D from shopping customers for capacity costs) to shopping customers only.  Conversely, the OMAEg requested that the PUCO reduce AEP-Ohio’s base generation rates for non-shopping customers to $189/MW-D to prohibit discriminatory capacity pricing.  The OMAEG has an opportunity to respond to AEP-Ohio’s application for rehearing (and OCC’s) in a memorandum contra due on September 17, 2012.

Additionally, on Tuesday, September 11, 2012, AEP-Ohio filed a motion to consolidate this rate case and the capacity case (Case No. 10-2929-EL-UNC), for purposes of deciding the issues raised on rehearing in both cases.  AEP-Ohio argued that capacity pricing is integrally related to the cost-recovery mechanism established in the rate case.

We will continue to monitor this case and provide updates accordingly.