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Economy and Business


AEP gets extension of rate hike
PUCO approves continued increase in capacity charge
by WKSU's KABIR BHATIA


Reporter
Kabir Bhatia
 
In The Region:
The Public Utilities Commission of Ohio has approved a continued rate hike for customers of Columbus-based American Electric Power. And as WKSU’s Kabir Bhatia reports, the increase will even affect customers of other power companies.
AEP gets extension of rate hike

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AEP has gained approval to charge competitors a higher fee for use of its lines, called a capacity charge, through July 2. That’s about 15 dollars more per month. Without the extension, the new rate would have taken effect and only added about a dollar per month, basing the charge on market value.

AEP’s main competitor, Akron-based FirstEnergy, says its rates aren’t as competitive when coupled with AEP’s higher capacity charge. But AEP spokesman Jeff Rennie says the higher capacity charge actually ensures healthy competition ahead of the rate auctions coming in the next three years.

“Instead of providing a standard service offer for the generation portion of our customer’s bills, the generation portion will be up for auction and the most competitive price will be offered for customers.”

The PUCO is expected to make a decision by July 2 on whether AEP gets to keep its rate increase, or has to submit to market forces, or an auction, to determine a new rate.
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