AEP responds to Ohio capacity case decision

By American Electric Power


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American Electric Power President and Chief Executive Officer Nicholas K. Akins issued the following statement in response to todayÂ’s decision from the Public Utilities Commission of Ohio PUCO in the AEP Ohio capacity charge case.

"While it is disappointing that the PUCO did not fully recognize the value of AEP Ohio's generation in this case, todayÂ’s decision is just one part of the process to determine a path to competition in Ohio. This path must provide both benefits for customers and a transition that maintains the financial integrity of AEP Ohio," Akins said. "It is clear that the PUCO recognized the relationship of this case with the pending Electric Security Plan case, and weÂ’ll look to that decision to more fully define the combined impacts of these orders."

The PUCO determined a generation capacity cost for AEP Ohio of $188.88 per megawatt-day. AEP OhioÂ’s actual cost of capacity is $355 per megawatt-day. The CommissionÂ’s order said that AEP Ohio must charge competitive retail electric service providers the Reliability Pricing Model RPM price currently $20.01 per megawatt-day, which is substantially below both AEPÂ’s actual cost of capacity and the PUCO-determined capacity cost.

Competitive retail electric service providers use AEP Ohio’s generating capacity to serve their customers. The PUCO indicated that AEP Ohio will be allowed to defer – under a method and over a period of time to be determined in AEP Ohio’s pending Electric Security Plan ESP case – the difference between the PUCO-determined capacity cost and the RPM price for recovery. An order in that case is expected in early August.

The PUCO postponed implementation of the recent order until Aug. 8 or until an order is issued in AEP OhioÂ’s pending ESP case, whichever is sooner.

AEP Ohio provides electricity to nearly 1.5 million customers of major AEP subsidiaries Ohio Power Company in Ohio and Wheeling Power Company in the northern panhandle of West Virginia. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nationÂ’s largest generators of electricity, owning nearly 39,000 megawatts of generating capacity in the U.S. AEP also owns the nationÂ’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.

AEPÂ’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas.

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Berlin Electric Utility Wins National Safety Award

Berlin Electric Utility APPA Safety Award recognizes Gold Designation performance in public power, highlighting OSHA-aligned incident rates, robust safety culture, worker safety training, and operational reliability that keeps the community's electric service resilient.

 

Key Points

A national honor for Berlin's Gold Designation recognizing safety performance, worker protection, and reliable service.

✅ Gold Designation in 15,000-29,999 worker hours APPA category

✅ OSHA-based incident rate and robust safety culture

✅ Training, PPE, and reliability focus in public power operations

 

The Town of Berlin Electric Utility Department has been recognized for its outstanding safety practices with the prestigious Safety Award of Excellence from the American Public Power Association (APPA), a distinction also reflected in Medicine Hat Electric Utility for health and safety excellence, highlighting industry-wide commitment to worker protection.

Recognition for Excellence

In an era when workplace safety is a critical concern, with organizations highlighting leadership in worker safety across the sector, the Town of Berlin Electric Utility Department’s achievement stands out. The department earned the Gold Designation award in the category for utilities with 15,000 to 29,999 worker hours of annual worker exposure. This category is part of the APPA’s annual Safety Awards, which are designed to recognize the safety performance of public power utilities across the United States.

Out of more than 200 utilities that participated in the 2024 Safety Awards, Berlin's Electric Utility Department distinguished itself with an exemplary safety record. The utility’s ranking was based on its low incidence of work-related injuries and illnesses, alongside its robust safety programs and strong safety culture.

What the Award Represents

The Safety Award of Excellence is given to utilities that demonstrate effective safety protocols and practices over the course of the year. The APPA evaluates utilities based on their incident rate, which is calculated using the number of work-related reportable injuries or illnesses relative to worker hours. This measurement adheres to guidelines established by the Occupational Safety and Health Administration (OSHA), ensuring a standardized approach to assessing safety.

For the Town of Berlin Electric Utility Department, achieving the Gold Designation award signifies a year of outstanding safety performance. The award reflects the department’s dedication to preventing accidents and creating a work environment where safety is prioritized at every level.

Why Safety Matters

For utilities like the one in Berlin, safety is not just about preventing injuries—it's about fostering a culture of care and responsibility. Electric utility workers face unique and significant risks, ranging from the dangers of working with high-voltage systems, including hazards near downed power lines that require extreme caution, to the physical demands of the job. A utility’s ability to minimize these risks and keep its workforce safe is a direct reflection of its safety practices, training, and overall management.

The commitment to safety extends beyond just the immediate work environment. Utilities that place a high value on safety typically invest in ongoing training, safety gear, and processes, and even contingency measures like staff living on site during outbreaks, that ensure all employees are well-prepared to handle the challenges of their roles. The Town of Berlin Electric Utility Department has taken these steps seriously, providing its workers with the resources they need to stay safe while maintaining the power supply for the local community.

The Importance of Worker Safety in Public Power

The American Public Power Association’s Safety Award program highlights the best practices in public utilities, which, as the U.S. grid overseer's pandemic warning reminded the sector, play a crucial role in providing essential services to communities across the country. Public power utilities, like Berlin’s, are governed by local or municipal entities rather than for-profit corporations, which often allows them to have a closer relationship with their communities. As a result, these utilities often go above and beyond when it comes to worker safety, understanding that the well-being of employees directly impacts the quality of service provided to residents.

For the Town of Berlin, this award not only highlights the utility's commitment to its employees but also reinforces the importance of the work that public utilities do in keeping communities safe and powered. Berlin's recognition underscores the significance of maintaining a safe work environment, especially when the safety of first responders and utility workers, as seen when nuclear plant workers raised concerns over virus precautions, directly impacts the public’s access to reliable services.

What’s Next for Berlin’s Electric Utility Department

Receiving the Safety Award of Excellence is a remarkable achievement, but for the Town of Berlin Electric Utility Department, it’s not the end of their safety journey—it’s just one more step in their ongoing commitment to improvement. The department’s leadership, including the safety team, has emphasized the importance of continually evaluating and enhancing safety protocols to stay ahead of potential risks. This includes adopting new safety technologies, refining training programs, and ensuring that all employees are involved in the process of safety.

As the Town of Berlin looks forward to the future, its focus on worker safety will remain a top priority. Maintaining this level of safety is not only crucial for the health and well-being of employees but also for ensuring the continued success of the community’s utility services.

Community Impact

This recognition also serves as an example for other utilities in the region and across the country. By prioritizing safety, the Town of Berlin Electric Utility Department sets a standard that other utilities can aspire to. In a time when worker safety is more important than ever, Berlin’s commitment to best practices provides a model for others to follow.

Ultimately, the safety of utility workers is a reflection of a community’s dedication to its workforce and its commitment to providing reliable, uninterrupted services. For the residents of Berlin, the recognition of their local electric utility department’s safety practices means that they can continue to rely on a safe, secure, and resilient power infrastructure, while staying mindful of home risks such as overheated power strips that can spark fires.

 

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More Polar Vortex 2021 Fallout (and Texas Two-Step): Monitor For ERCOT Identifies Improper Payments For Ancillary Services

ERCOT Ancillary Services Clawback and VOLL Pricing summarize PUCT and IMM actions on load shed, real-time pricing adders, clawbacks, and settlement corrections after the 2021 winter storm in the Texas power grid market.

 

Key Points

Policies addressing clawbacks for unprovided AS and correcting VOLL-based price adders after load shed ended in ERCOT.

✅ PUCT ordered clawbacks for ancillary services not delivered.

✅ IMM urged price correction after firm load shed ceased.

✅ ERCOT's VOLL adder raised costs by $16B during 32 hours.

 

Potomac Economics, the Independent Market Monitor (IMM) for the Electric Reliability Council of Texas (ERCOT), filed a report with the Public Utility Commission of Texas (PUCT) that certain payments were made by ERCOT for Ancillary Services (AS) that were not provided, even as ERCOT later issued a winter reliability RFP to procure capacity during subsequent seasons.

According to the IMM (emphasis added):

There were a number of instances during the operating days outlined above in which AS was not provided in real time because of forced outages or derations. For market participants that are not able to meet their AS responsibility, typically the ERCOT operator marks the short amount in the software. This causes the AS responsibility to be effectively removed and the day-ahead AS payment to be clawed back in settlement. However, the ERCOT operators did not complete this task during the winter event, echoing issues like the Ontario IESO phantom demand that cost customers millions, and therefore the "failure to provide" settlements were not invoked in real time.

Removing the operator intervention step and automating the "failure to provide" settlement was contemplated in NPRR947: Clarification to Ancillary Service Supply Responsibility Definition and Improvements to Determining and Charging for Ancillary Service Failed Quantities; however, the NPRR was withdrawn in August 2020 amid ongoing market reform discussions because of the system cost, some complexities related to AS trades, and the implementation of real-time co-optimization.

Invoking the "failure to provide" settlement for all AS that market participants failed to provide during the operating days outlined above will produce market outcomes and settlements consistent with underlying market principles. In this case, the principle is that market participants should not be paid for services that they do not provide, even as a separate ruling found power plants exempt from providing electricity in emergencies under Texas law, underscoring the distinction between obligations and settlements. Whether ERCOT marked the short amount in real-time or not should not affect the settlement of these ancillary services.

On March 3, 2021, the PUCT ordered (a related press release is here) that:

ERCOT shall claw back all payments for ancillary service that were made to an entity that did not provide its required ancillary service during real time on ERCOT operating days starting February 14, 2021 and ending on February 19,2021.

On March 4, 2021, the IMM filed another report and recommended that:

the [PUCT] direct ERCOT to correct the real-time prices from 0:00 February 18,2021, to 09:00 February 19, 2021, to remove the inappropriate pricing intervention that occurred during that time period.

The IMM approvingly noted the PUCT's February 15, 2021 order, which mandated that real-time energy prices reflect firm load shed by setting prices at the value of lost load (VOLL).1

According to the IMM (emphasis added):

This is essential in an energy-only market, like ERCOT's, where the Texas power grid faces recurring crisis risks, because it provides efficient economic signals to increase the electric generation needed to restore the load and service it reliably over the long term.

Conversely, it is equally important that prices not reflect VOLL when the system is not in shortage and load is being served, and experiences in capacity markets show auction payouts can fall sharply under different conditions. The Commission recognized this principle in its Order, expressly stating it is only ERCOT's out-of-market shedding firm load that is required to be reflected in prices. Unfortunately, ERCOT exceeded the mandate of the Commission by continuing to set process at VOLL long after it ceased the firm load shed.

ERCOT recalled the last of the firm load shed instructions at 23:55 on February 17, 2021. Therefore, in order to comply with the Commission Order, the pricing intervention that raised prices to VOLL should have ended immediately at that time. However, ERCOT continued to hold prices at VOLL by inflating the Real-Time On-Line Reliability Deployment Price Adder for an additional 32 hours through the morning of February 19. This decision resulted in $16 billion in additional costs to ERCOT's market, prompting legislative bailout proposals in Austin, of which roughly $1.5 billion was uplifted to load-serving entities to provide make-whole payments to generators for energy that was not needed or produced.

However, at its March 5, 2021, open meeting (related discussion begins around minute 20), although the PUCT acknowledged the "good points" raised by the IMM, the PUCT was not willing to retrospectively adjust its real-time pricing for this period out of concerns that some related transactions (ICE futures and others) may have already settled and for unintended consequences of such retroactive adjustments.  

 

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NRC Makes Available Turkey Point Renewal Application

Turkey Point Subsequent License Renewal seeks NRC approval for FP&L to extend Units 3 and 4, three-loop pressurized water reactors near Homestead, Miami; public review, docketing, and an Atomic Safety and Licensing Board hearing.

 

Key Points

The NRC is reviewing FP&L's request to extend Turkey Point Units 3 and 4 operating licenses by 20 years.

✅ NRC will docket if application is complete

✅ Public review and opportunity for adjudicatory hearing

✅ Units commissioned in 1972 and 1973, near Miami

 

The U.S. Nuclear Regulatory Commission said Thursday that it had made available the first-ever "subsequent license renewal application," amid milestones at nuclear power projects worldwide, which came from Florida Power and Light and applies to the company's Turkey Point Nuclear Generating Station's Units 3 and 4.

The Nuclear Regulatory Commission recently made available for public review the first-ever subsequent license renewal application, which Florida Power & Light Company submitted on Jan. 1.

In the application, FP&L requests an additional 20 years for the operating licenses of Turkey Point Nuclear Generating Units 3 and 4, three-loop, pressurized water reactors located in Homestead, Florida, where the Florida PSC recently approved a municipal solid waste energy purchase, approximately 40 miles south of Miami.

The NRC approved the initial license renewal in June 2002, as new reactors at Georgia's Vogtle plant continue to take shape nationwide. Unit 3 is currently licensed to operate through July 19, 2032. Unit 4 is licensed to operate through April 10, 2033.

#google#

NRC staff is currently reviewing the application, while a new U.S. reactor has recently started up, underscoring broader industry momentum. If the staff determines the application is complete, they will docket it and publish a notice of opportunity to request an adjudicatory hearing before the NRC’s Atomic Safety and Licensing Board.

The first-ever subsequent license renewal application, submitted by Florida Power & Light Company asks for an additional 20 years for the already-renewed operating licenses of Turkey Point, even as India moves to revive its nuclear program internationally, which are currently set to expire in July of 2032 and April of 2033. The two thee-loop, pressurized water reactors, located about 40 miles south of Miami, were commissioned in July 1972 and April 1973.

If the application is determined to be complete, the staff will docket it and publish a notice of opportunity to request an adjudicatory hearing before the NRC’s Atomic Safety and Licensing Board, the agency said.

The application is available for public review on the NRC website. Copies of the application will be available at the Homestead Branch Library in Homestead, the Naraja Branch Library in Homestead and the South Dade Regional Library in Miami.

 

 

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Hundreds facing hydro disconnection as bills pile up during winter ban

Ontario Hydro Disconnection Ban ends May 1, prompting utilities and Hydro One to push payment plans, address arrears, and link low-income assistance, as Sudbury officials urge customers to avoid spring electricity disconnections.

 

Key Points

A seasonal policy halting winter shutoffs in Ontario, ending May 1 as utilities emphasize payment plans and assistance.

✅ Disconnections resume after winter moratorium ends May 1.

✅ Utilities offer payment plans, arrears management, relief funds.

✅ Hydro One delays shutoffs until June 1; arrears down 60%.

 

The first of May has taken on new meaning this year in Ontario.

It's when the province's ban on hydro disconnections during the winter months comes to an end, even as Ontario considers extending moratoriums in some cases.

Wendy Watson, the director of communications at Greater Sudbury Utilities, says signs of the approaching deadline could be seen in their office of the past few weeks.

"We've had quite an active stream of people into our front office to catch up on their accounts and also we've had a lot of people calling us to make payment arrangements or pay their bill or deal with their arrears," she says.

#google#

Watson says there are 590 customers in Sudbury who could face possible disconnection this spring, compared with just 60 when the ban started in November.

"They will put off until tomorrow what they can avoid today," she says.

Watson says they are hoping to work with customers to figure payment plans with more choice and flexibility and avoid the need to cut power to certain homes and businesses. 

"As we like to say we're in the distribution of energy business, not the disconnection of energy business. We want you to be able to turn the lights on," she says.

Joseph Leblanc from the Social Planning Council of Sudbury says the winter hydro disconnection ban is one of several government measures that keep low income families on the brink of disaster. (CBC)

Hydro One executive vice-president of customer care Ferio Pugilese, whose utility later extended disconnection bans across its service area, tells a different story.

He says the company has worked hard to configure payment plans for customers over the last three years amid unchanged peak-rate policies and find ways for them to pay "that fit their lifestyle."

"The threat of a disconnection is not on its own something that's going to motivate someone to pay their bills," says Pugilese.

He says Hydro One is also sending out notices this spring, but won't begin cutting anyone off until June 1st.

He says that disconnections and the amount owing from outstanding bills to Hydro One are down 60 per cent in the last year. 

Ontario Energy Minister Glenn Thibeault says there is plenty of help from government programs and utility financing options like Hydro One's relief fund for those having trouble paying their power bills. (CBC)

Sudbury MPP and Energy Minister Glenn Thibeault says his hope is that people having trouble paying their power bills will talk to their hydro utility and look at the numerous programs the government offers to help low-income citizens.

"You know, I really want every customer to have a conversation with their local utility about getting back on track and we do have those programs in place," he says.

However, Joseph Leblanc, the executive director of the Social Planning Council of Sudbury, says the winter disconnection ban is just another government policy that keeps the poor on the brink of disaster.

"It's a feel good story for the government to say that, but it's a band-aid solution. We can stop the bleeding for a little while, make sure people aren't freezing to death in Ontario," he says. 

"People choose between rent, hydro, medicine, food, and there's an option for one of those to take some pressure off for a little while."

Instead, Leblanc would like to see the government fast track the province-wide implementation of the basic income program it's testing out in a few cities. 

 

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Why rolling back European electricity prices is tougher than appears

EU Energy Price Crisis drives soaring electricity bills as natural gas sets pay-as-clear power prices; leaders debate price caps, common gas purchasing, market reform, renewables, and ETS changes amid Ukraine war supply shocks.

 

Key Points

A surge in gas-driven power costs linked to pay-as-clear pricing, supply shocks, and policy rifts across the EU market.

✅ Gas sets marginal power price via pay-as-clear mechanism

✅ Spain pushes decoupling and temporary price caps

✅ EU weighs joint gas buying, efficiency, more renewables

 

Nothing grabs politicians' attention faster than angry voters, and they've had plenty to be furious about as natural gas and electricity bills have soared to stomach-churning levels in recent months, as this UK natural gas analysis illustrates across markets.

That's led to a scramble to figure out ways to get those costs down, with emergency price-limiting measures under discussion — but that's turning out to be very difficult, so the likeliest result is that EU leaders meeting later this week won't come up with any solutions.

“There is no single easy answer to tackle the high electricity prices given the diversity of situations among Member States. Some options are only suitable for specific national contexts,” the European Commission said on Wednesday. “They all carry costs and drawbacks.” 

The initial problem was a surge in gas demand in Asia last year coupled with lower-than-normal Russian gas deliveries that left European gas storage at unusually low levels. Now the war in Ukraine is making matters even worse, as pressure grows for the bloc to rapidly cut its imports of Russian oil, coal and natural gas — although some national leaders reject the economic costs that would entail.

"We will end this dependence as quickly as we can, but to do that from one day to the next would mean plunging our country and all of Europe into a recession," German Chancellor Olaf Scholz warned on Wednesday.

The problem for the bloc is that its liberalized electricity market is tightly tied to the price of natural gas; power prices are set by the final input needed to balance demand — called pay-as-clear — which in most cases is set by natural gas. That's led to countries with large amounts of cheaper renewable or nuclear energy seeing sharp spikes in power prices thanks to the cost of that final bit of gas-fired electricity.

A Spanish-led coalition that includes Portugal, Belgium and Italy wants deep reforms to the EU price model, fueling a broader electricity market revamp debate in Brussels.

Others, such as the Netherlands and Germany, strongly oppose such an approach, echoing how nine countries oppose reforms at the EU level, and want to focus on cushioning the effects of the high prices on consumers and businesses, while letting the market operate. 

A third group, largely in Central Europe, wants to use the price spike to revamp or scrap the bloc's Emissions Trading System and to rethink its Fit for 55 climate legislation.

The European Commission has been holding the middle ground — arguing that the current market model makes sense, but encouraging countries to boost the amount of renewable electricity, in a wake-up call to ditch fossil fuels for Europe, to cut energy use and increase efficiency.

In draft conclusions of this week's European Council summit, seen by POLITICO, EU leaders, amid a France-Germany tussle over reform, call for things like a common approach to buying gas, aimed at preventing countries from competing against each other. But there's no big movement on electricity prices.

“It does not seem realistic to expect a result on the energy discussion at this European Council,” one diplomat said, stressing that the governments will need to see more analysis before committing to any more steps.

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Spain wanted a much more robust response. Madrid has been arguing since last summer for “decoupling” gas from the electricity market; together with Portugal, it also mulled limiting the wholesale price of electricity to €180 per megawatt-hour — a proposal that Spain abandoned under fire from industry and consumer groups. 

Now Madrid is pushing to get a specific permission in the summit's final conclusions that would allow countries to voluntarily apply certain short-term solutions such as gas price cap strategies, according to a draft with track changes seen by POLITICO.

The issue with a cap is if gas prices are higher than the cap, Spain might not be able to buy any gas.

 

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A resilient Germany is weathering the energy crunch

German Energy Price Brakes harness price signals in a market-based policy, cutting gas consumption, preserving industrial output, and supporting CO2 reduction, showcasing Germany's resilience and adaptation while protecting households and businesses across Europe.

 

Key Points

Fixed-amount subsidies preserving price signals to curb gas use, shield consumers, and sustain industrial output.

✅ Maintains incentives via market-based price signals

✅ Cuts gas consumption without distorting EU markets

✅ Protects households and industry while curbing CO2

 

German industry and society are once again proving much more resilient and adaptable than certain people feared. Horror scenarios of a dangerous energy rationing or a massive slump in our economy have often been bandied about. But we are nowhere near that. With a challenging year just behind us, this is good news — not only for Germany, but also for Europe, where France-Germany energy cooperation has strengthened solidarity.

Companies and households reacted swiftly to the sharp increases in energy prices, in line with momentum in the global energy transition seen across markets. They installed more efficient heating or production facilities, switched to alternatives and imported intermediate products. The results are encouraging: German households and businesses have reduced gas consumption significantly, despite recent cold weather. From the start of the war in Ukraine to mid-December industrial gas consumption in Germany was (temperature-adjusted) around 20 per cent lower than the average level for the preceding three years. Even if some firms have cut back production, especially in energy-intensive sectors, industrial output as a whole has only fallen by about 1 per cent since the start of 2022. Added to this, in a survey released by the Ifo institute in November, over a third of German companies saw the potential to reduce gas consumption further without endangering output.

Instead of imposing excessive laws and regulations, we have relied on price signals and the prudence of market participants to create the right incentives and reduce gas consumption, as falling costs like record-low solar power prices continue to reinforce those signals across sectors.

We will follow this approach in coming months, when energy savings will remain important, even as the EU electricity outlook anticipates sharply higher demand by 2050. Our latest relief measures will not distort price signals. To this end, the Bundestag approved gas and electricity price brakes in its final session in 2022. They are designed to function without any intervention in markets or prices. This system will pay out a fixed amount relative to previous years’ consumption and the current difference to a reference price — regardless of current consumption.

Energy price brakes are the main component of Germany’s “protective shield”, which makes up to €200bn available for measures in 2022 to 2024. Seen in relation to the German economy’s size, its past heavy reliance on Russian energy imports and the fact that the measures will expire in 2024, these are balanced and expedient mechanisms. In contrast to instruments used in other countries, our new arrangements will not affect the price formation process driven by supply and demand, or on incentives to save gas. Companies and households will continue to save the full market price when they reduce consumption by a unit of gas or electricity. In this way, the price brakes also avoid the creation of additional demand for gas at the expense of consumers in other European countries, even as Europe’s Big Oil turning electric signals broader structural shifts in energy markets. No one need fear that competition will be distorted or that gas will be bought up. Indeed, a recent IMF working paper on cushioning the impact of high energy prices on households explicitly praises the German energy price brakes.

Current developments confirm the effectiveness of a market-based approach — and show that we should also rely on price signals when it comes to reducing CO₂ emissions, as suggested by IEA CO2 trends in recent years. Last year, households and companies had only a few weeks to adapt, yet we have already seen a strong response. The effect of CO₂ prices can be even stronger, as adaptation is possible over a much longer time and they additionally affect expectations and long-term decisions. Regulatory interventions and subsidy schemes, even if well targeted, cannot compete with market co-ordination and incentives that support individual decision-making and promote innovation.

Europe and Germany can weather this crisis without a collapse in industrial production. We also have an opportunity to deal efficiently with the move to climate neutrality, aligned with Germany’s hydrogen strategy for imported low-carbon fuels. In both cases, we should have confidence in price signals as well as in the power of people and business to innovate and adapt.

 

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