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Staff Report Supports Substantial Revenue Increase In Utility’s Rate Case And Increases In CRES Registration Fees
Summary of the Ohio Public Utilities Staff’s Revenue Increase Recommendations for the Ohio Power Company:
“As shown on Schedule A-1, Staff recommends a revenue increase in the range of $279,911,925 to $296,025,228. This represents an increase of 28 percent to 30 percent compared to test year operating revenue. This determination is based on Staff’s examination of the accounts and records of the Company for the 12 months ending November 30, 2025, as summarized in this report, including schedules that incorporate Staff’s recommended rate of return (ROR), rate base, and adjusted operating income.”
Summary of Staff’s Rate of Return Recommendation:
“Staff recommends a rate of return in the range of 6.85 percent to 7.10 percent. The recommended rate of return was developed using a cost of capital approach, which reflects a market-derived cost of equity and AEP Ohio’s actual cost of debt.”
Staff Recommendation Re: CRES Registration Fee Increase:
CRES Provider Registration with the Company
“The Company has proposed an increase in the registration fees for Competitive Retail Electric Service (“CRES”) providers. Specifically, the fee for new registrations would increase from $100 to $356, while the renewal registration fee would increase from $100 to $128. Upon review of the supporting materials, Staff finds the proposed charges to be adequately justified and recommends approval.” [Emphasis added.]
As background on April 30, 2025, the Company filed a notice of intent to file an application for an increase in its electric distribution rates subject to PUCO jurisdiction. On May 30, 2025, the Company filed its application to increase electric distribution rates (“Application”). By its Entry dated May 28, 2025, the Commission approved the requested test period and date certain and granted in part and denied in part the Company’s requested waiver of certain filing requirements. By Entry dated July 23, 2025, the Commission ordered that the Application be accepted as of May 30, 2025. The rates proposed by the Company for increase, when applied to test year sales volumes, would generate $405,215,077 of additional retail base rate revenues, for a total revenue requirement of $1,395,666,971. The total revenue requested increase over test year operating revenues is approximately 41 percent.
Staff Report of Investigation (10/17/2025)
Staff Report of Investigation
25-393-EL-ATA
(Ohio Power Company – Application for Tariff Approval)
