Update: As you will recollect from last week’s report, on October 29, 2013, Direct Energy Services, LLC and Direct Energy Business, LLC, FirstEnergy Solutions Corp., OCC, IEU-Ohio, and OMAEG filed comments on AEP Ohio’s Application to Amend its Corporate Separation Plan (Application).  OMAEG commented that AEP Ohio did not explain the impact on rates that may result from approval of its Application, and that as a result, OMAEG could not support the Application.  Further, OMAEG noted that AEP Ohio’s request to retain its Ohio Valley Electric Corporation contractual entitlements to generation resources raises serious questions of compliance with Section 4928.17, Revised Code, and Chapter 4901:1-37, Ohio Administrative Code (O.A.C.).  Pursuant to this rule, negative implications exist regardless of whether AEP Ohio itself retains the proceeds from the sale of its OVEC generation resources, or allocates those proceeds to an affiliate, e.g., AEP Genco.  OMAEG commented that AEP Ohio must provide additional information regarding the impacts of its Application in order for interested parties and the Commission to properly assess its request.

On October 31, 2013, AEP Ohio filed a letter to the Attorney Examiner formally notifying the Commission that AEP Ohio identified the obligations that will be subject to the terms of Paragraph 32(c) of the October 17, 2012 Finding and Order.  AEP Ohio confirmed that AEP Genco will be continually responsible for all costs resulting from such remaining liabilities and that AEP Ohio expects that these remaining liabilities will continue to exist through the existing contract term.  AEP Ohio met with Staff privately to discuss confidential contract negotiations and agreed to notify Staff if there is a development regarding the pre-existing contractual obligations retained by AEP Ohio that triggers any unreimbursed cost or liability during the remaining term of those contracts.

On November 7, 2013, Direct Energy Services, LLC filed a letter with the Commission stating that they would not be filing reply comments.  OMAEG has similarly decided that it is unnecessary to file reply comments.  Any parties filing reply comments must do so by the end of the day today.  We will provide a brief summary of reply comments filed in next week’s report.