COLUMBUS, Ohio — The Public Utilities Commission of Ohio ordered AEP Ohio to implement new distribution rates Tuesday that will reduce the utility’s annual revenues by approximately $58.7 million.
The PUCO also approved AEP Ohio’s request to update its bill format to enhance transparency and help customers better understand their electricity bills.
The PUCO adopted a settlement agreement that will increase base distribution revenues by $11 million, compared to the $97 million sought by the utility. The settlement establishes a return on equity of 9.84 percent.
AEP Ohio will return approximately $105 million to customers over an 18-month period due to the Tax Cuts and Jobs Act, resulting in the total revenue decrease of $58.7 million.
“The settlement we’re approving today focuses on utility affordability and ensuring that new data centers are responsible for the costs they impose on the grid, while providing the utility with the tools it needs to focus on system reliability,” PUCO Chair Jenifer French stated.
AEP Ohio will institute a minimum monthly customer charge for new data center customers. The commission said the provision builds on a previous PUCO order to create a specific data center tariff to ensure data center customers pay for the costs they impose on the grid.
AEP Ohio is authorized to continue programs to make capital investments in its distribution systems and manage vegetation to reduce outages, including commitments to address trees outside the utility’s right of way that contribute to outages. Any costs under these programs are subject to future PUCO review, approval and audit.