AEP Ohio, a unit of American Electric Power (NYSE: AEP), filed its Electric Security Plan (ESP) tariffs with the Public Utilities Commission of Ohio (PUCO). The tariffs show rate increases approved by the Commission on a total bill basis that include generation, distribution and transmission charges.
"We have worked hard to minimize bill impacts on customers as we transition to a competitive market model," said Pablo Vegas, AEP Ohio president and chief operating officer. "Customers will benefit during this transition by having fixed generation rates and a greater ability to shop for a competitive price on their power generation service, and by having AEP Ohio take part in energy supply auctions."
Under the tariffs, resulting from a PUCO order on Aug. 8, a typical residential customer using 1,000 kWh per month would see an
increase of approximately $7.85 (6.3 percent) on the total bill for
customers in the CSP rate zone and $6.94 (6.1 percent) for customers in
Ohio Power's rate zone in 2012. The increases are associated with
distribution investments already made by AEP Ohio on behalf of the
customers and for providing deep discounts to third-party electricity
generation suppliers.
A typical commercial (GS-2) customer using 10,000 kWh per month with a 30 kWh demand would see an increase of approximately $13.08 (1.0 percent) on the total bill for customers in the CSP rate zone and $49.87 (4.8 percent) for customers in Ohio Power's rate zone in 2012.
In addition to the ESP rates, customers will begin paying for power
generation fuel costs from the period 2009-2011 that the Commission
ordered AEP Ohio to defer for collection beginning in 2012. The company will collect the deferred costs over a seven-year period through a Phase-In Recovery Rider (PIRR). The PUCO approved this recovery on Aug. 2.

A typical residential customer using 1,000 kWh per month would see a
monthly PIRR cost of approximately $0.07 (0.1 percent) for customers in the CSP rate zone and $4.22 (3.7 percent) for customers in Ohio Power's rate zone.
A typical commercial (GS-2) customer using 10,000 kWh per month with a 30 kWh demand would see an increase of approximately $0.68 (0.1 percent) for customers in the CSP rate zone and $42.22 (4.1 percent) for customers in Ohio Power's rate zone in 2012.

Ohio Power rate zone customers experienced larger increases due to
having a larger fuel deferral than CSP rate zone customers. The percentage increases also are factored on a total bill basis.
The company expects the PUCO to approve the tariffs and the PIRR to
commence with the first billing cycle in September. Customers are
encouraged to go to www.aepohio.com to find energy efficiency ideas that will help to reduce their bills.

AEP Ohio provides electricity to nearly 1.5 million customers of
major AEP subsidiaries Columbus Southern Power Company and Ohio Power Company in Ohio, and Wheeling Power Company in the northern panhandle of West Virginia. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power. News and information about AEP Ohio can be found at www.aepohio.com.