The Ohio state agency that oversees electricity rates said today that it will address what it calls the "significant impacts" new American Electric Power rates are having on small businesses, local governments and school districts.
The Public Utilities Commission of Ohio said it has received more than 200 complaints from AEP customers who have been hit with large increases in their bills since it approved the rates in December.
"My fellow commissioners and I are deeply troubled by what we have heard from business owners, elected officials, and the governor on this issue," PUCO Chairman Todd A. Snitchler said in a statement.
"We acknowledge the negative impact our decision is having on small businesses, the backbone of Ohio's economy. To those affected customers, we too are deeply concerned and are fully committed to addressing the situation quickly. We want to resolve this issue so you can get back to positively impacting the economic recovery beginning to take place in Ohio."
Snitchler said the agency will take up the issue immediately so that a long-term resolution can be in place by the end of the month.
The agency said it set the rates based on information provided by the company. "Our decisions are only as good as the company billing information they are based upon," Snitchler said. "In this case, we depended upon AEP to provide accurate data upon which to base our decision."
PUCO spokeswoman Beth Trombold said AEP provided information about how the rate would affect classes of customers, but not for specific customers. Rates ended up being higher than expected, she said.
Under the deal the PUCO approved in December, AEP is moving to more of a market-based rate structure through 2016.
While officials representing manufacturers, energy suppliers and others signed off on the deal, it almost immediately began to generate complaints from small businesses, schools and local governments who said that they were blindsided by the increases. Economists even weighed in, saying the big increases could stunt the state's economy and put the state at a disadvantage to surrounding states.
AEP could not immediately be reached for comment.
mawilliams@dispatch.com
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