EPSA asks PUCO to put AEP contract on hold pending challenge

The Electric Power Supply Association (EPSA) and several of its independent power providers, backed by various other organization are asking the Public Utilities Commission of Ohio (PUCO) to put on hold a power purchase agreement (PPA) for an American Electric Power (NYSE:AEP) subsidiary until the legal battle over the contract is resolved.

The motion, filed March 21, essentially asks the PUCO to stay action on the pending AEP PPAs until FERC has acted on the pending complaints filed by EPSA and other opponents of the contract.

In addition to EPSA, other entities favoring a stay include the Office of the Ohio Consumers’ Counsel, Appalachian Peace and Justice Network and the Ohio Manufacturers’ Association Energy Group.

“To protect 1.3 million Ohio consumers from paying non-refundable rates for a power purchase agreement (PPA), these proceedings should be stayed while the Federal Energy Regulatory Commission (FERC) considers a complaint that would require a review of the PPA between affiliated companies,” according to the motion.

“If FERC rescinds the waiver on affiliate power sales restrictions previously granted to AEP Ohio and reviews the proposed affiliate PPA to ensure that its rates, terms, and conditions are just and reasonable, and free from affiliate abuse, the stay should remain until a final decision is issued by FERC regarding the legality of AEP Ohio’s proposed PPA,” according to the motion. 

EPSA is asking FERC to rescind a previously granted waiver that, according to AEP Ohio, allows it to enter into a wholesale sale of electricity with its affiliate without FERC oversight.

EPSA said the motion for the stay is “supported by a broad, unprecedented coalition.”

The two cases involving Ohio Power company issues are Case No. 14-1693-EL-RDR and Case No. 14-1694-EL-AAM.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.