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Ohio Upholds Competitive Market Integrity

March 4, 2015 By Josh Kessler

On February 18, we reported that the Public Utility Commission of Ohio (PUCO) was reviewing two cases that would have exempted utilities AEP and FirstEnergy from standard competitive market rules. This week, PUCO announced that it is denying AEP’s request, according to Power Magazine. This ruling will likely serve as precedent for other similar cases, including the FirstEnergy case.

Specifically, AEP’s Ohio subsidiary requested a rider that would force customers to pay for the difference between standard market rates and a power-purchase agreement (PPA) set outside of standard market procedures. While utility customers would have paid the actual difference, the PPA could have affected pricing throughout PJM. Power Magazine reports that Environmental Groups, including the Environmental Defense Fund, applauded the PUCO decision as it “assures that markets will remain competitive.”

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