Electric restructuring is almost a reality for Ohio consumersstatewide as American Electric Power’s (AEP) transition plan andMonongahela Power’s plan were approved by the Public UtilitiesCommission of Ohio. AEP’s and Monongahela’s Ohio customers will nowjoin the customers of the other three utilities in enjoying thefreedom of choosing their electricity supplier, with servicestarting as early as Jan. 1.

“This order provides an opportunity to jump start the market byproviding the resources for retail customers to begin to shop forcompetitive generation services,” said PUCO Chairman Alan Schriber.

AEP Ohio President Floyd Nickerson said, “For the most part,we’re pleased with the approval. However, we disagree with thePUCO’s treatment of the gross receipts tax, and we will be askingfor a rehearing on this issue.

AEP Spokesperson Deb Strohmaier explained the tax dispute, “Webelieve as it stands right now, the rule, and the order, and theway the law is written, that there would be a double collection onthe gross receipts tax. We disagree with the commission on that;$97 million is what we would have to eat, if that stands.”

AEP’s Columbus Southern Power Co. and Ohio Power serve 1.3million electric customers. In May, the company reached astipulated settlement agreement with intervenors. Terms of thestipulation agreement provide for extended rate freezes through2005 or the end of the market development period, rate reductionsof 5% for residential customers as of Jan. 1, and other conditionsexpected to increase the savings of commercial and residentialcustomers.

PUCO also approved Monongahela’s plan on the one yearanniversary of the date Ohio’s electric restructuring bill tookeffect. The approval signified the fifth and final approvalnecessary for electric choice to take place. Like the other plans,stipulations provide for a 5% rate reduction and rate freezesthrough the end of the market development period.

“This Commission order, and the four that proceeded it, providefor an environment that will create a retail market and provideopportunities for customer savings beginning January 1, 2001,” saidSchriber.

PUCO already has approved plans from Cincinnati Gas &Electric, Dayton Power and Light, and First Energy. All of thecompanies’ electric deregulation plans begin on Jan. 1.

PUCO spokesperson Beth Gianforcaro said billboards are alreadygoing up, and the consumer education effort will begin inmid-to-late October. She also said that marketers have startedsubmitting for certification, “probably about three or four.”Certification of marketers is PUCO’s next priority, she added.

Alex Steis

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