January 8, 2016, Volume 5, Issue 1

01/08/2016

Update: The evidentiary hearing on the settlement reached between AEP, Staff, Sierra Club, OEG, and a few other parties began this week. Before the hearing commenced, PUCO Commissioner Haque noted the “gravity” of the issues presented in the case and expressed his expectation that the hearing will develop a “robust record” for PUCO review. Only one witness presented testimony in support of the settlement, an AEP regulatory employee. Many parties, including OMA Energy Group, presented testimony in opposition to the settlement. OMA Energy Group witness Ned Hill did an excellent job explaining how the benefits accruing to the redistributive coalition that joined the settlement would have the result of unfairly shifting costs to other customers and inflicting harm on the competitive markets. OMA Energy Group witness John Seryak also persuasively showed how the energy efficiency and renewable energy provisions of the settlement could increase the costs of the PPA Rider. PJM Interconnection LLC (PJM) sought to intervene and file testimony in the case but unfortunately the PUCO refused to allow PJM to participate. OMA Energy Group objected to the PUCO’s ruling and explained that PJM’s presence in the case would have provided valuable insights about the risks posed by the PPA units to bid into the wholesale markets at less than the units’ actual production costs.

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