Tip:
Highlight text to annotate it
X
Hi. I’m Pablo Vegas, president of AEP Ohio.
I want you to know we are listening to you, we hear your questions and I’m here to give
you answers.
One of the most frequent questions you ask is why has it taken AEP Ohio so long to transition
to a competitive market?
Let me give you a little history.
More than a decade ago, state legislators voted to give a majority of Ohio citizens
the opportunity to have a choice in picking their electricity provider in a competitive
market.
However, since that policy was adopted, the Public Utilities Commission of Ohio or the
PUCO has repeatedly asked us to delay our move to competition.
And they had a good reason to do it – it kept electricity prices lower than what they
were in the competitive market.
It was the right thing to do for you, our customers, so we agreed to wait.
In 2005, again we were preparing to move to a competitive market. And again, regulators
asked us to wait.
Our electricity prices were lower than the going rate on the competitive market.
So we filed lower regulated rates which kept your electricity prices low.
It was the right thing to do, so we did it.
Then again in 2006, the PUCO asked us dedicate our low-cost generation fleet to our customers
instead of participating in the competitive market.
We did the right thing so customers would have stable, low rates through May 2015.
But then last year, the economy began to change.
Factories and businesses were using less electricity and demand for electricity was down. As a
result, electricity prices fell.
For the first time, prices on the competitive market were lower than some of AEP Ohio’s
prices.
The PUCO said now is the time to move to the competitive market and to do it as quickly
as possible.
We agree that it’s the right thing to do.
We just want the right timeframe to do it.
Back when deregulation was approved more than 10 years ago,
utility companies were given six years to transition to a competitive market.
Some companies took more than eight years.
All we're asking for is three years.
We need this time to unwind the contractual and legal obligations that we entered into
that guarantee you enough electricity available to serve your needs.
A fair transition will ensure a reliable source of electricity,
strong competition and low rates for all Ohioans.
If you have a question, I am here to answer.
Please send a message through Facebook, Twitter, email or our blog.
Thank you for your time.