In re Application of Columbus S. Power Co.

American Electric Power operating companies (AEP) had been providing service to a pair of manufacturing customers at discounted rates. AEP had been keeping track of its delta revenue, the difference between what AEP would have collected under its tariffs and what it actually collected with the discount, and intended to collect it through a rider. In the case below, AEP filed an application seeking permission to collect its delta revenue through the rider. Industrial Energy Users-Ohio (IEU) opposed both requests. The Public Utilities Commission rejected IEU's arguments and allowed the American Electric Power operating companies (AEP) to recover the costs arising from the discounted-rate arrangements. IEU appealed. The Supreme Court affirmed, holding (1) IEU did not show that the Commission erred in modifying the phase-in of AEP's rates, and (2) IEU did not show that the Commission erred in calculating AEP's carrying charges. View "In re Application of Columbus S. Power Co." on Justia Law