Electric bill increases prompt hearing request

Published 9:56 am Tuesday, September 28, 2010

A change this summer in how American Electric Power charges its customers has prompted a state-based consumer watchdog to mount a protest.

This past Friday the Ohio Consumers’ Counsel asked for the Public Utilities Commission of Ohio to reconsider the PUCO’s August decision to allow AEP to start billing for carrying charges that the OCC contends is over-collecting from the utilities’ customers.

“What we are saying is that the way the PUCO approved those costs, it is causing AEP customers to overpay the utility,” Anthony Rodriguez of the OCC said.

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For Lawrence County’s customers, that means the average monthly electric bill has gone up a little more than $2.

Across the state that means AEP is getting close to $87 million in overpay, the OCC contends.

Typically, every three years the AEP will go before the PUCO to establish its rates in what is called its electric security plan.

The last time AEP presented its plan to the PUCO was the first part of 2009.

At that time the utility was allowed to recover for costs for its environmental improvements, but not for its reliability program that focuses on tree trimming and vegetation control to reduce the number of power outages caused by such incidents as falling trees.

However in August the PUCO allowed AEP to bill for those charges as well as additional money for its environmental investment and the utility’s smart grid program. That latter charge will only affect Columbus customers.

“We are concerned the way this additional money that AEP is allowed to collect despite what was laid out,” Rodriguez said.

The PUCO has not said when it might rule on the OCC’s request.

“The PUCO can really put it on the fast track and sometimes can take a slower approach,” Rodriguez said. “It can depend on its case load.”

An email sent to the media relations of AEP was not returned by press time.

AEP serves customers in Ironton and the villages along the Ohio River, as well as parts of Elizabeth, Hamilton, Lawrence, Perry, Fayette, Union and Rome townships.