AEP seeks Ohio OK for electric security plan with $2.2B in reliability spending
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American Electric Power (NASDAQ:AEP) said Friday it asked the Public Utilities Commission of Ohio to approve a six-year electric security plan that includes $2.2B in reliability-focused projects.
The plan would raise rates for a residential customer using 1,000 kWh/year by 5.2% in the first year, then rise by 1.8% annually through 2030 for an overall average annual rate increase of ~2.3%, the utility said in testimony before the PUC.
The rate plan calls for various riders to allow AEP Ohio (AEP) to recover its costs; more than 5,500 miles of power lines and hundreds of pieces of substation equipment would be replaced under the proposal, according to the utility.
Distribution line equipment failures and vegetation outside of rights of way account for more than half of customer service interruptions, the utility said.
"AEP Ohio will continue to require capital investment to respond reactively to failing equipment; however, it is prudent for AEP Ohio to expand proactive investments for asset replacement as it is increasingly difficult to sustain and improve the level of reliability that our customers expect," the company said.
American Electric Power (AEP) offers investors conservative dividend income with future growth opportunities in the renewable sector, William Stamm writes in an analysis posted on Seeking Alpha.