Update: The Commission has approved a settlement entered into between TimkenSteel and PUCO Staff that authorizes TimkenSteel’s application for a unique arrangement. No modifications were made to the terms of the settlement by the Commission. As approved, the 65-month unique arrangement will allow TimkenSteel to receive generation service from a CRES provider. TimkenSteel will receive a discount off of the charges applicable to AEP’s tariff for distribution service including nonbypassable riders. TimkenSteel will be subject to a fixed delta revenue cap of $27.5 million over the term of the arrangement and a separate fixed delta revenue cap over any 24-month period of $10 million; pay for AEP’s Basic Transmission Cost Rider (BTCR) based on its annual single EDU transmission coincident peak; and receive an interruptible service credit of $8.21/kW per month per unit of curtailable load. TimkenSteel’s payment of the BTCR is not subject to or included in the delta revenue calculation. Likewise, the interruptible service credit is not subject to or included in the delta revenue calculation.

The Commission found that the unique arrangement would bolster TimkenSteel’s financial and economic impact, facilitate continued capital investments, and enhance Ohio’s competitiveness in the global economy. The Ohio Consumers’ Counsel (OCC) asked the Commission to limit TimkenSteel’s unique arrangement to this case, without there being a repeat request from customers in the future. OCC also requested that the Commission require cost sharing between AEP and its customers. The Commission, however, did not adopt any of OCC’s suggestions.