Office of the Ohio Consumers' Counsel

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Contact: Ryan Lippe
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Consumers’ Counsel seeks Supreme Court action to push PUCO action in AEP case

COLUMBUS, Ohio – October 23, 2009 – The Office of the Ohio Consumers’ Counsel (OCC) today asked the Supreme Court of Ohio to direct state regulators to issue a decision in American Electric Power’s rate plan case. This directive would allow appeals of the Public Utilities Commission of Ohio’s (PUCO) March 2009 rate plan decision to be heard at the Court.

The PUCO has not yet issued a decision in response to requests for the regulators to reconsider changes made to its original decision.

The OCC asserts that unlawful rates have been collected from customers since April 1, 2009, and the consumer advocate has attempted repeatedly to challenge that collection at the PUCO and the Court. The PUCO has sought to quash the OCC’s latest efforts on the basis that the PUCO has yet to rule on two unrelated requests for rehearing. The requests for rehearing have languished before the commission for two months.

“The longer a decision in this case is withheld by the PUCO, the less chance there is of customers receiving any refund of unlawfully-approved retroactive rates,” said Consumers’ Counsel Janine Migden-Ostrander.

The PUCO modified and approved AEP’s electric security plan, imposing new, higher rates for AEP customers retroactive to Jan. 1, 2009. The decision allowed the company to bill customers for 12 months worth of rate increases over nine months. That collection ends on Dec. 31, 2009.

The OCC believes the retroactive rates are a violation of state law, including Ohio’s recentlyenacted electric energy policy. On Sept. 10, 2009, the OCC filed an appeal with the Court asking that significant and unlawful retroactive portions of the PUCO’s approval of the AEP electric security plan in March be overturned. On Sept. 22, 2009, the OCC requested the Court block the collection of retroactive rates so customers would no longer have to pay these unlawful rates. The OCC’s earlier efforts to block collection of rates in April 2009 were unsuccessful at the Court.

The absence of a PUCO decision now allows the PUCO and AEP to argue to the Court that the OCC’s pending appeal is premature. In addition, if the Court decides refunds cannot be provided to customers for any bills already paid, the lack of a decision is costing customers months’ worth of unlawful rates, with no way to refund customers.

The OCC estimates if the retroactive rates are not stopped, it will cost all Columbus Southern Power customers (residential, commercial and industrial) approximately $30 million, while all Ohio Power customers will pay an extra $33 million. The utilities are subsidiaries of AEP.

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.