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Ohio Consumers' Counsel Objects to AEP Rate Plan
COLUMBUS, Ohio -- The Office of the Ohio Consumers' Counsel is urging customers of American Electric Power to attend one of two public hearings and voice their concerns about the future of their electric rates. AEP has a plan pending before the Public Utilities Commission of Ohio that, if approved, could raise electric rates significantly and take away important consumer benefits, the residential utility advocacy agency says."Residential consumers need protection from higher rates, not plans that will significantly increase their monthly bills," says Janine Migden-Ostrander, Consumers' Counsel. "Given the opportunity for AEP to increase rates, the plan will not provide the rate stability for residential consumers."The OCC objects to AEP's plan because it:Provides an opportunity to prematurely eliminate the current 5% rate reduction. Currently, AEP customers' receive a 5% discount off their generation rates. AEP's plan would end that discount 18 months before Ohio's electric choice law allows, resulting in the company collecting an additional $40 million from consumers.Increases generation rates by as much as 33%. These rates, which account for approximately 60% of a customer's total monthly electric bill, could be raised by as much as 33% over four years beginning in 2006. Columbus Southern Power customers' rates could increase 20% by 2008 and Ohio Power customers' rates could go up as much as 33 % in that same time. For customers of both operating companies this would mean an increase of between $8 and $10 per month on their bills.Permits distribution rate increases. In addition to the generation rate increase, AEP's plan enables the company to seek to raise its distribution rates beyond what is allowed under a current PUCO approved plan."This hearing presents customers an opportunity to share any concerns they may have about their electric rates," says Migden-Ostrander. "We hope that the PUCO listens to consumers and groups like our office that have spoken out against this plan and sends AEP back to the drawing board."Consumers who have concerns about the future of their electric rates can share their opinions with the PUCO in person at the following meetings:Canton: May 19, 6:30 p.m., City Hall Council ChambersColumbus: May 24, 10 a.m., Public Utilities Commission of Ohio officesConsumers can obtain additional information about how to participate in this public hearing as well as how to share their thoughts in writing by calling the OCC at (877) PICKOCC.The Office of the Ohio Consumers' Counsel, the residential utility advocate, represents the interests of 4.5 million consumers in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals.Visit the Office of the Ohio Consumers' Counsel: www.pickocc.org"