The Public Utilities Commission of Ohio (PUCO) last Thursday initiated an in-depth review of the financial condition of the state’s major public utilities in order to ensure that unregulated affiliate activities do not negatively affect the financial condition or service quality of the regulated utilities serving Ohio. Utilities based in Ohio include American Electric Power (AEP), FirstEnergy, Cinergy and DPL.

“Our obligation is to ensure that the integrity of the companies we regulate is not undermined by the activities of their affiliates,” stated PUCO Chairman Alan Schriber. “At this time, we have no reason to believe that any Ohio utility customers are at risk.”

The commission said its goal is to proactively determine how to insulate the regulated side of Ohio’s utility industry from risks taken by unregulated affiliates. No public utilities have been ordered to submit financial data at this time, but rather the review will offer the companies and interested parties to provide input and suggestions as to how to best achieve the commission’s goal. Comments must be filed no later than Nov. 11.

The Commission will initially focus on Ohio’s largest regulated utilities, but may expand to include other utilities across the state. The full text of Thursday’s order is available at www.PUCO.ohio.gov.

AEP last Thursday slashed its 2002 earnings guidance 9%, expecting it to fall between $2.85 and $3.15 per share, down from an earlier forecast of $3.20-$3.35 a share. For 2003, the company expects earnings to be in the same range as this year (see related story).

Xcel Energy, parent of Minneapolis-based NRG Energy has seen its share price throttled in recent months as NRG attempts to right its financial ship. NRG is restructuring and pursuing sales of its power plants and is also considering write-downs or abandonment of various projects.

More recently, investors last week took a buzz saw to shares of Texas-based TXU Corp. after the company lowered its earnings forecast earlier this month, placing blame for the shortfall on TXU Europe’s dismal performance (see related story).

©Copyright 2002 Intelligence Press Inc. Allrights reserved. The preceding news report may not be republishedor redistributed, in whole or in part, in any form, without priorwritten consent of Intelligence Press, Inc.