AEP Ohio Companies' Tariffs Still Include POLR Charges

May 20, 2011
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Ohio Power and Columbus Southern Power have filed tariffs to continue to charge customers nonbypassable Provider of Last Resort charges, though not at the rates set in their electricity security plan (ESP), but at rates based on the prior Rate Stabilization Plan.

The Industrial Energy Users of Ohio called the tariff filing an, "intentional violation of the Commission's May 4, 2011 Entry," which, due a court's finding that PUCO's order accepting the ESP POLR charges was unlawful, directed the AEP companies to file, "proposed revised tariffs that would remove POLR charges."

"At this point, the Companies are billing and collecting revenue in excess of the amount the Commission lawfully authorized. Under the operative law, the Companies have no legal claim to continue to recover this revenue. Yet, through steps that can only be described as intentional, the Companies have sought to delay and possibly flout the implementation a decision of the Supreme Court by the Commission," the industrials said.

"[T]he effect of the Companies' non-complaint tariff proposals is also designed to derail the opportunity to reduce electric bills by obtaining generation supply from a competitive retail electric services ('CRES') supplier," IEU-Ohio added.

"The mathematical consequences of the Companies' proposal to selectively revert to a pre-ESP POLR that is non-bypassable means that shopping consumers will see less value from shopping. As evidenced by the Companies' proposals for a new ESP, the Companies are interested in erecting economic and other barriers to shopping. The Companies have taken advantage of the Commission's May 4, 2011 Entry to propose tariffs that serve the Companies' strategic objectives. In the case of Ohio Power, the inclusion of the per-ESP POLR works to reduce the amount of the fuel charge. The fuel charge is fully bypassable. Reducing the fuel charge in this context works against shopping. Also in the case of Ohio Power, the proposal to revert to the pre-ESP POLR operates to increase the amount of revenue subject to future collection through a nonbypassable charge (the ESP hangover) commencing in 2012. Because of the interest charges that the Commission authorized to be added to the revenue deferred for future collection, the net present value of such deferrals is decidedly anti-consumer and further unjust enrichment of the Companies," IEU-Ohio added.

The Ohio Consumers Counsel stated that, as a result of the AEP companies' tariffs, the rate reductions which were intended to occur and be implemented in May, will likely not be implemented until June, "and another $22 million will be kept by the Companies." Since OCC noted that AEP will likely argue such amounts cannot be refunded, OCC requested that PUCO consider assessing a forfeiture penalty on the AEP companies.

The matter is Docket 08-917-EL-SSO et. al.

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