Office of the Ohio Consumers' Counsel

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Green power program would provide new option for AEP Ohio customers

COLUMBUS, Ohio – March 23, 2007 – A newly proposed green energy option would provide American Electric Power (AEP) Ohio customers the chance to promote the use of electricity from renewable resources, the Office of the Ohio Consumers’ Counsel (OCC), the residential utility consumer advocate, said today.

The OCC, AEP, the staff of the Public Utilities Commission of Ohio (PUCO) and other parties worked cooperatively toward the creation of the Green Pricing Option, which would begin if approval is granted by PUCO Commissioners. The proposal would resolve a PUCO case related to the OCC’s appeal of an AEP rate plan to the Supreme Court of Ohio. The Court found AEP’s plan to be unlawful and returned it to the PUCO for revisions. A major issue in the case involves the lack of any option for electric customers beyond the utility’s standard service offer.

“Residential consumers should be given this opportunity to help promote the benefits of renewable power, which include greater energy independence and a better environment,” said Janine Migden- Ostrander, Consumers’ Counsel. “If this option is approved, AEP customers will be able to participate in a program to buy credits to support renewable power generated throughout the region. It is an easy way for customers to make a difference.”

The OCC worked cooperatively with Duke Energy toward creation of a similar program, called GoGreen Power, for Duke’s approximately 600,000 residential consumers in the Cincinnati area. The proposal is pending approval at the PUCO.

Customers who sign up for the AEP program would pay a small premium and purchase a minimum of 200 kilowatt hours (kWh) of renewable energy credits each month. Based on the prices of similar green pricing programs, the purchase of 200 kWh of credits could cost customers about $5 per month. Consumers could choose to purchase a greater amount of renewable energy credits as well. The typical residential customer uses 850 kWh of electricity per month but could choose to buy as little as 200 kWh of credits.

The credits would be obtained by AEP through a regional bidding process. Renewable energy credits are bought and sold by many utilities and other power producers and reflect renewable power being generated throughout the country. The existing credit system supports the development of new renewable facilities.

Customers would be provided information through their AEP electric bills about the Green Pricing Option.

The OCC supports maintaining a portfolio of diverse renewable products which helps advance the competitive market for electricity from these sources. A more developed market would likely lower the price of renewable energy in the future.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.