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AEP Ohio
Electric Security Plan
(Filed January 27, 2011)
Technical Conference
Case Nos. 11-346-EL-SSO and 11-348-EL-SSO
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RHS&A March 8, 2011
AEP Ohio – Electric Security Plan
Summary
Electric Security Plan (ESP) filed January 27, 2011
Information provided for Columbus Southern Power,
Ohio Power, and a merged AEP Ohio Company
Merger proceedings in progress at PUCO and FERC
Separate Distribution Rate Case Proceeding
Filed February 28, 2011
Proposed 29 Month Period
January 2012 – May 2014
All customer classes
Addresses generation rates
Includes certain distribution elements
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RHS&A
AEP Ohio – Electric Security Plan
Summary - Continued
Filing Presents AEP Ohio’s Vision of the Future:
AEP Ohio Growth Fund;
Partnership With Ohio;
gridSMART® continuation and expansion;
Distribution Investment and Vegetation Management;
Optional Green Power Portfolio Rider;
Plug-In Electric Vehicle Provision;
Energy Efficiency (EE), Peak Demand Reduction (DR)
& Renewable Energy;
Generation, Environmental and Renewable
Investment; and
Rate Security Rider.
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RHS&A
AEP Ohio – Electric Security Plan
Summary - Continued
Base Generation Rate* increase request of :
1.4% in 2012
2.7% in 2013
No Increase in January through May 2014
Continued Recovery of Fuel (FAC) and Environmental Cost
Note: Individual customer classes will see increases/decreases that vary
from the overall increase.
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RHS&A
AEP Ohio – Electric Security Plan
Generation Rate Realignment
Base generation rates designed to resemble market pricing
structures
Seasonal rates for all customers
Summer: June through September
Winter: October through May
Simplified tariff classes:
Residential
Non-demand metered C&I
Demand Metered C&I
Lighting
Market Transition Rider
Mitigate Customer Class Impacts in 2012 and 2013
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RHS&A
AEP Ohio – Electric Security Plan
Updated Current Riders
Fuel Adjustment Clause (FAC) Rider
No longer subject to rate caps
RECs removed from FAC
Environmental Investment Carrying Cost Rider
Include environmental O&M
Provider of Last Resort Charge
Updated values
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RHS&A
AEP Ohio – Electric Security Plan
Proposed New Riders
Standard Offer Generation Service Rider
Relocation of base generation rates to a rider
Generation Resource Rider
Costs for new generation resources, including renewables
Alternative Energy Rider
Relocation of RECs from FAC
Phase-In Recovery Rider
Previous ESP deferrals, possibility of securitization
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RHS&A
AEP Ohio – Electric Security Plan
Proposed New Riders - Continued
Distribution Investment Rider
Support for capital funding for distribution asset management
programs, distribution capacity and infrastructure additions and
continued implementation of advanced technology and
gridSMART®
Generation NERC Compliance Cost Recovery Rider
Generation Costs resulting from NERC standards
Facility Closure Cost Recovery Rider
Actual closure costs for any generation-related facility closed
during the ESP
Carbon Capture and Sequestration (CCS) Rider
Ohio share of Front-End Engineering and Design study costs for
Commercial Scale CCS Facility
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RHS&A
AEP Ohio – Electric Security Plan
Proposed New Riders - Continued
Market Transition Rider
Mitigate customer class impacts in 2012 and 2013
2012 Change 2012 Change
Customer without with
Company Class Market Transition Rider Market Transition Rider
CSP RS 7.2% 5.0%
CSP GS1 (20.0%) (6.4%)
CSP GS2 (20.0%) (5.3%)
CSP GS3 (3.7%) (0.3%)
CSP GS4/IRP 12.2% 2.3%
OPCo RS 6.6% 6.0%
OPCo GS1 (9.8%) 1.5%
OPCo GS2 (6.8%) 0.1%
OPCo GS3 (0.6%) (0.7%)
OPCo GS4/IRP (0.8%) (6.6%) 9
Total 1.4% 1.4%
RHS&A
AEP Ohio – Electric Security Plan
Other Provisions
Rate Security Rider
Customer option to elect standard offer service from the Company
for the ESP term plus 3 years
Customer receives 15% discount on base generation rate for term
of ESP. Rate customer paying at end of ESP increases 5% a year at
beginning of each of year (June 1, 2014, 2015 and 2016).
In other words, in final year of agreement (June 2016 – May 2017),
customer’s base generation rate equal to “standard” base
generation rate for January 2013 – May 2014.
Limited to customers > 200 kW and a total of 2,500 GWH aggregate
annual usage
Available to customers in certain standard industrial classification
(SIC) codes
March 31, 2012 enrollment deadline
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RHS&A
AEP Ohio – Electric Security Plan
Other Provisions - Continued
Green Power Portfolio Rider
Customer can choose to purchase 25%, 50%, 75% or 100%
of energy requirements from Renewable Energy Resources
Plug-In Electric Vehicle Provision
Experimental provision with a time-of-use rate and
reimbursement for up to $2,500 towards charging station
installation. Limited to 200 customers.
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RHS&A
AEP Ohio – Electric Security Plan
Other Provisions - Continued
Emergency Curtailable Service Rider
New interruptible service offering similar to PJM-offered
program
Current IRP-D customers have option to remain on IRP-D
Storm Damage Recovery Mechanism
Accounting mechanism to track actual storm experience
relative to baseline
Pool Termination or Modification Provision
Addresses treatment should costs during term of ESP
significantly increase due to the elimination of the AEP Pool
or substitution of a new agreement
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RHS&A
AEP Ohio – Electric Security Plan
Guide to Filing Documents
Witness General Subject Areas
Joseph Hamrock General Policy Witness
Market Transition Rider (MTR)
Green Power Portfolio Rider (GPPR)
Economic Development Rider (EDR)
Rate Security Rider (RSR)
Philip Nelson Fuel Adjustment Clause (FAC)
Phase-In Recovery Rider (PIRR)
Generation Resource Rider (GRR)
Alternative Energy Rider (AER)
Environmental Investment Carrying Cost Rider(EICCR)
Carbon Capture and Sequestration Rider (CCSR)
Pool termination & modification 13
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AEP Ohio – Electric Security Plan
Guide to Filing Documents - Continued
Witness General Subject Areas
Renee Hawkins Securitization of Deferred Fuel
Jay Godfrey Renewable Portfolio Standard (RPS) and RPS
approval process
Thomas Kirkpatrick Distribution Investment Rider (DIR)
Enhanced Service Reliability Rider (ESRR)
Storm Damage Recovery
Karen Sloneker gridSMART®,
Energy Efficiency (EE)
Peak Demand Response (PDR)
Plug-In Electric Vehicles (PEV)
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RHS&A
AEP Ohio – Electric Security Plan
Guide to Filing Documents - Continued
Witness General Subject Areas
Thomas Mitchell Regulatory accounting for certain riders including ,
but not limited to: Generation NERC Compliance
Cost Recovery Rider (NERCR) and Facilities Closure
Cost Recovery Rider (FCCR)
Andrea Moore Rate design of: gridSMART® Rider, TCRR, FAC,
AER, PIRR, EE/PDR, EDR, ESRR, EICCR, DIR,NERCR,
FCCR, PEV, Provider of Last Resort (POLR) Rider,
Storm Damage Recovery Mechanism
David Roush Tariffs and Rate Design for certain riders such as
the MTR, GPPR, RSR, Standard Offer Generation
Service Rider (GSR)
Laura Thomas Market Rate Offer (MRO) Test, POLR, FCCR, and
NERCR 15
RHS&A
AEP Ohio – Electric Security Plan
Procedural Schedule
March 8 Technical Conference
March 14 Intervention deadline
June 13 Intervenor testimony due
June 16 Discovery ends
June 27 PUCO Staff testimony due
July 6 Procedural conference
July 13 Hearing*
*Note: Company has requested a continuance to July 20
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AEP Ohio – Electric Security Plan
Conclusion
ESP, in Aggregate, Is More Favorable than Expected Results of MRO;
ESP Reflects AEP Ohio’s Vision of the Future;
Designed to Meet the Provisions of SB221;
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AEP Ohio – Electric Security Plan
Thank You For Your Interest
In
AEP Ohio’s
Proposed 29 Month Electric Security Plan
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