On July 2, the Public Utilities Commission of Ohio (PUCO) issued an order in the AEP Ohio capacity case.
The Commission’s decision will require AEP Ohio to charge competitive suppliers the market price for capacity, eliminating the discriminatory pricing mechanism proposed by AEP that would have limited customer access to market based capacity pricing and restricted the number of AEP Ohio customers switching to a competitive supplier.
FirstEnergy Solutions is cautiously optimistic that these actions will restore meaningful savings for all AEP Ohio customers who shop for a supplier. But the decision will not be entirely clear until the PUCO rules on AEP’s Electric Security Plan next month.
Market-based capacity pricing will give businesses and consumers access to electric generation prices that are at historic lows, without discriminatory pricing that would limit shopping. FirstEnergy Solutions passionately fought for these changes and if implemented the right way, they will result in lower electric bills for electric customers and an improved business climate in Ohio.
FirstEnergy Solutions is eager to compete for the right to serve customers in AEP’s territory. When suppliers compete, the customer wins through lower prices and innovative service offerings such as “green” products and long-term contracts at a fixed price.