The Public Utilities Commission of Ohio has approved, with one modification, American Electric Power's energy efficiency and peak demand reduction program portfolio plans for 2010 through 2012. Under the approved plans, AEP intends to incur costs of $161.9 million over a three-year period to meet the mandate of Ohio Revised Code Section 4928.66(A)(1), which requires electric utilities to achieve energy savings on an accelerating scale through 2025. The Commission authorized AEP to start recovering lost distribution revenue, caused by decreased energy usage, through an additional charge, or rider, on electric bills. However, the Commission determined that the record in the case failed to establish what revenue is necessary to provide AEP with the opportunity to recover its costs and earn a reasonable return. The PUCO, therefore, temporarily granted AEP lost revenue recovery through Jan. 1, 2011. If AEP develops a better quantification of its revenue requirements, the PUCO will consider an extension of the recovery period.
AEP currently has six portfolio programs in place: 1) appliance recycling; 2) energy efficient lighting; 3) lighting incentives and custom project incentives; 4) a process whereby mercantile customers, which are subject to an increasing rider under 4928.66(A)(1), can pursue their own projects and potentially receive a rider exemption; 5) and 6) two pilot programs through AEP's Partnership With Ohio Fund for energy efficiency kits. Information on AEP's programs can be found here.
AEP filed its portfolio plans together with a stipulation the utility entered into with, among others, the Ohio Consumers' Counsel, Ohio Manufacturers' Association, Ohio Environmental Council, Ohio Hospital Association, and Sierra Club of Ohio. Under the terms of the stipulation, the other signatories can challenge AEP's incentive-based renewable energy credit program and REC purchase program for solar photovoltaic and small wind resources.