Business Coalition Opposes Ratepayer Subsidization of AEP Generation
October 21,2014
A dozen Ohio businesses have protested, in a letter to PUCO, AEP Ohio's proposed PPA rider which as most recently proposed would provide ratepayer support for the operation of generation owned by an AEP competitive affiliate, as well as AEP Ohio's share in OVEC.
The protesting companies, including Lowe’s Home Improvement, Macy’s Inc., Owens Corning, and Yum! Brands, among others, collectively maintain 1,729 facilities in Ohio, spending $111 million annually on electricity while providing 79,000 jobs.
The businesses argue that the generation subsidies “will act as an unfair tax” on customers, will discourage customers from purchasing electricity from a competitive supplier, and will inappropriately hold the customer accountable for the financial risks of AEP's business decisions.
"With AEP Ohio generation subsidized, the level of competition and innovation in the Ohio market, and pressure to keep costs down, will lessen," the businesses said.