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Q. Why should customers have to pay AEP Ohio’s storm costs?

by on January 11, 2013

A. Our rates include overhead expenses such as repairing equipment and facilities after normal storms we expect to see.

Our rates don’t include extraordinary expenses, such as bringing in hundreds additional workers to repair large-scale damage to the infrastructure.

We’ve asked the Public Utilities Commission of Ohio (PUCO) to approve a Storm Recovery Rider to recover the cost of materials, equipment and extra manpower that was necessary to reduce the time our customers were without power.

In the case of these summer storms, more than 94 percent of our storm expenses are due to the need to bring in outside line mechanics to work around the clock to restore electricity to our customers as quickly as possible.

A customer who uses an average amount of electricity will pay about $36 over 12 months, if the Public Utilities Commission of Ohio approves the Storm Recovery Rider.

Why doesn’t AEP Ohio have insurance? It’s cost-prohibitive to us and to our customers. Few insurance companies are willing to take the risk of insuring an electric utility. Essentially, we’re self-insured against normal storms.

Remember, our total cost for repairs and power restoration is not a bill that will be automatically paid by our customers. The PUCO, which regulates how utilities operate in our state, must carefully review all of our storm costs and determine what will be recovered.

From → Rates

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