Did Public Utilities Commission Follow Law When Calculating AEP Companies' 'Excessive Earnings'?
Customer Groups Argue Improper Earnings Comparison Reduced Refunds
In the Matter of the Application of Columbus Southern Power Company and Ohio Power Company for Administration of the Significantly Excessive Earnings Test under Section 4928.143(F), Revised Code, and Rule 4901:1-35-10, Ohio Administrative Code, Case no. 2011-0751
Appeal from order of the Public Utilities Commission of Ohio
ISSUE: In calculating whether the electric service rates that Columbus Southern Power Company (CSP) and Ohio Power Company (OP) charged their customers in 2009 resulted in “significantly excessive earnings” that must be refunded to ratepayers, did the Public Utilities Commission of Ohio (PUCO) act contrary to law in conducting a required comparison of those companies’ earnings on equity against the earnings of other utilities and comparable businesses?