For those of you who had money on the Final Four tournament, the Masters or the passage of the new ESP for FirstEnergy or the PPA filings in AEP, my guess is we all came up a little short. Not to mention what the impact will be going forward over the next 8 years. Only time will tell.
On March 31st, Ohio regulators approved the “income guarantees” for a number of AEP’s coal fired generation plants and FirstEnergy’s Davis Besse nuclear facility, a coal facility (Sammis) and their share of OVEC (Ohio Valley Electric Cooperative).
The PPA portions for both utilities, according to them, not only stabilizes rates, and provides job security but also guarantees their rate of return on their assets for the next 8 years. We will have a clear picture in 9 years! As a side note, DP&L is preparing their PPA proposal so those in that market area probably will not be left out!
Every rate payer within their respective service territories [AEP Ohio & FirstEnergy Ohio] will be affected, whether supply is taken from a supplier or directly from the utility. The charges (or credits) are unavoidable and non-bypassable on the distribution side of the bill meaning we all get to share equally.
Here are some links to the official PUCO comments:
For those energy nerds like us, or if you just can’t fall asleep:
www.PUCO.ohio.gov Case number: 14-1297-EL-SSO
www.PUCO.ohio.gov Case number: 14-1693-EL-RDR