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PUCO Grants FirstEnergy and AEP Ohio, Interim Relief To Conduct Default Service Auctions For Supply For The Period Beginning June 1, 2024
The Public Utilities Commission of Ohio issues orders granting FirstEnergy and AEP Ohio, interim relief to conduct default service auctions for supply for the period beginning June 1, 2024, while the respective EDCs’ proposed new electric security plans governing default service remain pending before the Commission.
For the FirstEnergy EDCs, PUCO “authorizes FirstEnergy to conduct two auctions to procure 50 tranches of 12-month product and 50 tranches of 24-month product, which should utilize a capacity proxy price as authorized by the Auction Order [PUCO’s recent capacity proxy price order].”
For AEP, PUCO grants interim relief to AEP Ohio to allow AEP Ohio to procure the remaining 50% of supply for the 12-month period starting June 1, 2024, via only a 12-month product. In approving the use of a 12-month product for AEP Ohio’s March 2024 auction, PUCO’s order states, “we acknowledge that AEP Ohio’s November 2023 auction incorporated a mix of products.”
“AEP Ohio is authorized to conduct an SSO auction in March 2024, consistent with the provisions of its current ESP. The Commission strongly encourages AEP Ohio to procure generation supply products of various lengths in subsequent auctions to reduce price volatility; however, we acknowledge that AEP Ohio’s November 2023 auction incorporated a mix of products, and, for that reason, we will not alter the Company’s request to offer only a 12-month product. In response to Constellation’s comments, we note that AEP Ohio has not only committed to a capacity proxy mechanism in its pending ESP proceeding, but the Company, as well as all other EDUs operating within Ohio, have been directed to develop appropriate CPP mechanisms with their respective auction managers for auctions that contain products for delivery years in which the capacity price remains unknown. CPP Order at ¶ 35. Notwithstanding this instruction, we recognize that the capacity price is known through May 31, 2025. As such, requiring a capacity proxy mechanism to be implemented prior to AEP Ohio’s March 2024 auction, which is limited to 12-month products, will not be necessary; however, we fully expect AEP Ohio to adhere to our directives contained in the CPP Order for future SSO auctions. For these reasons, the Commission grants AEP Ohio’s motion for interim relief.”
Order (01/10/2024)
23-23-EL-SSO (01/06/2023)
23-24-EL-AAM
