Office of the Ohio Consumers' Counsel

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Contact: Ryan Lippe
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Latest decision in Ormet case sustains Ohio Consumers’ Counsel benefits for AEP customers

COLUMBUS, Ohio – September 15, 2009 – corrected copy – The Office of the Ohio Consumers’ Counsel (OCC) is pleased that a decision today by the Public Utilities Commission of Ohio (PUCO) upheld the elimination of a portion of a discount for Ormet Primary Aluminum Corp. The discount is for maintaining Ohio jobs and subsidized by all ratepayers, including residential customers. The OCC was joined in its efforts by the Ohio Energy Group, an organization of large energy users throughout Ohio.

“We are pleased that the OCC and Ohio Energy Group were victorious on this issue and saved residential consumers from subsidizing a portion of Ormet’s proposed discount,” said Consumers’ Counsel Janine Migden-Ostrander.

Today, the PUCO issued an entry regarding requests from parties to revise its July decision that modified and approved the Ormet electric discount. In today’s entry, the PUCO affirmed eliminating the customer subsidy of AEP’s “provider of last resort” charge as it pertains to Ormet.

The provider of last resort charge is supposed to compensate a utility for the risk of a customer switching to an alternative generation supplier and returning to the utility, which then must serve the customer with generation. The OCC argued that there is no risk to AEP of Ormet switching to an alternative electric supplier since Ormet must be supplied by AEP to receive the rate discount.

The OCC estimates that customers will save approximately $15 million in 2009 and $11 million in 2010 through the elimination of the provider of last resort portion of the Ormet subsidy.

Ohio’s electric policy law adopted in 2008 permits reasonable arrangements based on unique circumstances, if the arrangements are filed and approved by the PUCO.

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 Web site at www.pickocc.org.