American Electric Power’s (AEP) AEP Ohio Power Company on June 1 filed with the Public Utilities Commission of Ohio an application seeking approval to increase gross revenues by about $42.3m, or 3.5% in average annual total revenue over the test period gross revenues generated from providing electric distribution service to customers.
As noted in the filing, the approved test year is Dec. 1, 2019 to Nov. 30, 2020.
In a June 1 statement, the company said that the requested adjustment would result in a $2.20 per month increase for a typical residential customer using 1,000 kWh per month.
In its application, the company requested that the rates be effective with the first billing cycle of April 2021, for all of its customers, subject to a potential delay of 60 days if a motion for continuance being filed in the docket is granted.
The company noted that it has been nearly a decade since it last filed a base rate case, adding that its application seeks to bring rates in line with the current investment and costs necessary to provide safe and reliable distribution service to customers, as well as to determine an appropriate return on equity (ROE).
The company said that an overall return of 7.90%, which includes a 10.15% ROE, is fair and reasonable.
In its statement, AEP Ohio said that the filing includes proposals to update streetlights and area lights leased by customers to more efficient and customizable LED fixtures; offer municipalities additional payment options for converting overhead service to underground; allow residential customers to pay their bills using a credit card without incurring additional processing fees; and enhance the company’s demand side management (DSM) efforts.
Among other things, the company said that it also proposes to build on the success of the electric vehicle (EV) charging incentive program previously approved by the commission. AEP Ohio said that it implemented in 2018 a program providing $9.5m in incentives to help local governments, workplaces, and locations in low-income areas install EV charging stations. Nearly all of the available funds have been committed to projects and almost 200 stations funded through the program are operational, the company said, adding that the interest in the program shows the growing demand for EV charging. AEP Ohio said that its DSM plan includes programs that will ensure the electric grid is able to handle the added demand EV charging will create, with those proposals including off-peak charging, fleet electrification programs, as well as ensuring charging is available near highways and other highly traveled roads.