Update: Despite the Staff Report that was filed recommending denial of Globe’s reasonable arrangement request, Globe moved forward with filing two pieces of witness testimony in support of its request for a fourth reasonable arrangement. Through its testimony, Globe asserts that its reasonable arrangement will not give it an undue advantage and that the customer-funded subsidy is necessary to maintain the jobs, payroll, tax revenue, and other economic activities associated with its Beverly plant. To address the concerns of OMA Energy Group, Staff, and OCC, Globe states that it is willing to reduce the aggregate delta revenue cap from $20 million to $16 million. Globe also proposes to terminate the reasonable arrangement by December 31, 2020 instead of May 31, 2021. OCC filed testimony in opposition to Globe’s request because of the increase it would have on customers’ costs. OCC also made several recommendations to the PUCO if it decided to approve Globe’s request, including denying future reasonable arrangement requests from Globe and directing AEP to engage in cost sharing with its customers so that customers alone do not bear the full cost of the subsidy. A hearing is scheduled for September 8, 2016.
September 2, 2016, Volume 5, Issue 126
09/02/2016