AEP Ohio's expanded purchase-power agreement under review

American Electric Power (AEP) Ohio said this week that it filed a stipulated agreement with the Public Utilities Commission of Ohio (PUCO) to facilitate the company's expanded purchase-power agreement (PPA).

PUCO is expected to rule on the filing in 2016. Under the stipulated agreement, AEP Ohio would agree to an eight-year power-purchase agreement for access to AEP's 2,671-megawatt (MW) ownership share of nine generating units and AEP Ohio's 423 MW contractual share of Ohio Valley Electric Corporation (OVEC) generation. The company said the agreement also would include environmentally-friendly modifications to AEP generation units.

"We are pleased to have reached an agreement on a comprehensive plan that helps ensure more stable electricity prices for Ohio consumers and promotes a reliable and diverse generation supply to support the Ohio economy," Pablo Vegas, AEP Ohio's president and chief operating officer, said. "This agreement addresses many of the concerns raised by a diverse group of parties, including advocates for low-income customers, environmental organizations, industrial and commercial customers and competitive energy suppliers. We appreciate the willingness of everyone involved to work together to support the state economy, preserve jobs, improve the environmental impact of Ohio's electricity-generation resources and protect Ohio customers from electricity-price volatility."

Through this agreement, the company also would create nearly 900 megawatts of generating capacity through wind and solar energy projects in the next five years.