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On April 1, 2026 the Public Utility Commission of Ohio (PUCO) approved without modification an

Opinion and Order adopting a stipulation that had been filed among major parties to the electric rate case of AEP Ohio.

As previously reported, a Joint Stipulation was filed on January 7, 2026.

Parties joining the Stipulation include AEP Ohio, Staff, OEG, OPAE, MARA, OELC, IGS, OMAEG, RESA, Kroger, NEP, and Sidecat while Google, Walmart, and OBC signed the Stipulation as non-opposing parties (collectively, Signatory Parties).

Below highlights of some of the provisions agreed to by the Signatory Parties.

{¶ 45} The Signatory Parties agree to an overall rate of return (ROR) of 7.10 percent, reflecting a cost of long-term debt of 4.27 percent and a ROE of 9.84 percent. The Signatory Parties agree to a capital structure of 49.12 percent debt and 50.88 percent equity.

{¶ 47} The Stipulation addresses issues related to data centers by clarifying data center customers’ participation in the 1CP and 6CP BTCR pilots, stating that any data centers currently participating can continue to do so until the end of ESP V. However, these customers will not be permitted to participate in the pilots or successor programs beginning on June 1, 2028. Further, any data center not currently participating in the 1CP or 6CP BTCR pilot will not be eligible to be added to the pilots. The Stipulation provides that the Supplemental Customer Charge under Schedule DCT will not apply to Existing Load (as defined in Schedule DCT), subject to specific provisions outlined in the Stipulation. The Signatory Parties agree that in the next base distribution rate case, Schedule DCT customers and Schedule GS customers will become separate customer classes in AEP Ohio’s Cost of Service Study, although all parties reserve their rights on this topic in the next base distribution rate case. Finally, AEP Ohio agrees that the unilateral termination of an existing Contract for Existing Load (load that is currently grandfathered under the DCT) does not, by itself, result in the same load becoming New Load under the DCT. (Jt. Ex. 1.)

{¶ 91} The Signatory Parties argue that the Stipulation significantly reduces the Company’s proposed ROE of 10.90 percent in the Application to an agreed-upon ROE of 9.84 percent, which is 106 basis points below the Company’s initial proposal of 10.90 percent (AEP Ohio Ex. 1 at 6; Jt. Ex. 1 at 5). The Signatory Parties believe the stipulated ROE serves the public interest by adequately balancing affordability with the Company’s ability to attract capital and earn a reasonable rate.

{¶ 100} AEP Ohio and the Signatory Parties argue that the Stipulation resets various riders, such as Rider DIR with specific caps that will enable the Company to support capital investments for reliability in Ohio. AEP Ohio asserts that the caps need to be increased over their current levels to support the significant growth AEP Ohio’s service area is experiencing; however, the caps still allow for a limit on recovery from customers as well as a requirement for future audits to function as another backstop on recovery. Additionally, the Stipulation revises the Data Center Tariff to require any new load, as defined in the tariff, to pay a monthly supplemental customer charge, the revenue from which will be used to offset the Rider DIR revenue requirement (AEP Ohio Ex. 2 at 18-20, 28, 34; Staff Ex. 1 at 14, 18; Staff Ex. 4 at 17-18).

{¶ 113} The Commission finds that the Stipulation’s terms related to Rider DIR are reasonable in the context of the Stipulation package. . . . Rider DIR ensures that AEP Ohio can make necessary investments in distribution infrastructure to maintain reliability by reducing the regulatory lag for recovery of those investments. Id. Rather than receiving funds regardless of whether any capital investment is made, AEP Ohio is only authorized through Rider DIR to recover capital investments that are actually made and are subsequently subject to rigorous annual audits by Staff to review the accounting accuracy, prudency, and compliance of those investments with the Commission-approved rider.