AEP Ohio gets modified PPA from Ohio PUC

Written By: Stratton Report
March 31, 2016

AEP

On March 31, American Electric Power announced that the Ohio PUC modified AEP Ohio’s expanded Power Purchase Agreement.

The plan includes AEP Ohio entering into an eight-year power purchase agreement for the capacity, energy and ancillary service output of AEP’s 2,671 megawatt (MW) ownership share of nine generating units and AEP Ohio’s 423 MW contractual share of Ohio Valley Electric Corporation (OVEC) generation. Subject to PUCO approval, AEP Ohio will develop at least 900 MW of wind and solar generation in Ohio over the next five years; continue its strong support of energy efficiency programs; and move forward with grid modernization efforts, including the installation of smart meters. Additionally, AEP Ohio will provide up to $100 million in customer credits during the term of the agreement.

The company also will retire, refuel or repower to 100 percent natural gas Conesville Units 5 and 6 and Cardinal Unit 1 by the end of 2029 and 2030, respectively.

Nicholas K. Akins, AEP chairman, president and chief executive officer.noted:

“Although the Public Utilities Commission of Ohio modified the settlement agreement, they did recognize the significant benefits of this plan for Ohio consumers. This plan will ensure more stable electricity prices in Ohio and promote the development of new, renewable generation to support the state’s economy. We worked with advocates for low-income customers, environmental organizations, industrial and commercial customers and competitive energy suppliers to develop an energy plan for Ohio that will support the state economy, preserve jobs, protect Ohio customers from electricity price volatility, and move Ohio to a greener energy future.”

AEP reaffirmed its 2016 earnings guidance range of $3.60 to $3.80 per share.