Update: On August 21, 2013, the PUCO issued an entry authorizing Ormet to defer $5 million for its August bill and, if its annual rate subsidies have been used, up to $5.5 million for its September bill.  This decision is a result of Ormet’s motion requesting expedited approval to defer its August and September 2013 payments to AEP-Ohio.

The PUCO also authorized AEP-Ohio to modify its accounting procedures to defer amounts not to exceed the $5 million for August and $5.5 million for September.  Any amounts that are not timely paid by Ormet under the deferred payment arrangement shall be considered as foregone revenue and recovered by AEP-Ohio through its Economic Development Rider.  The PUCO noted that the relief granted is intended to mitigate Ormet’s immediate cash flow problem.  However, the PUCO also recognized the potential financial risk being incurred by AEP-Ohio and its other ratepayers.

The evidentiary hearing is scheduled to commence Tuesday, August 27, 2013, regarding Ormet’s request to amend its existing unique arrangement with AEP-Ohio.  Counsel will participate in the hearing and will provide updates accordingly.