PUCO To Address Small Business Rate Increases For AEP Customers

The Public Utilities Commission of Ohio announced that it will address recent significant increases in electricity bills for small business customers of American Electric Power.

PUCO approved an agreement in December that enabled AEP to transfer to a market-based generation rate structure from 2012 to 2016.

Under the new plan, AEP will separate its generation and distribution assets.  AEP will provide electricity for customer through competitive auctions starting June 2012, according to a statement from PUCO.

The new plan included new charges meant to recover millions of dollars in deferred distribution and fuel costs and costs included in the transition to the market-based structure, the statement said.

The statement said that PUCO billed the rate impacts among customer classes based on figures and information provided by AEP.

This decision comes a day after Gov. John Kasich announced that he would call the head of the commission to ask if a solution to the rate increases could be found.

PUCO said that mainly small businesses, school districts and local governments were affected by the increase.

A specific plan to address the rate increase was not announced.

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