Energy Procurement, Industrial, Utilities - December 1, 2016
Utility proposes $500k power credit for automakers
A central Ohio electric utility has proposed an economic development cost-recovery rider intended to support area automakers through a bill credit, according to Columbus (Ohio) Business First.
The American Electric Power Company Inc. subsidiary AEP Ohio proposed offering up to $500,000 a year in support to automakers that use more electricity than they did in 2009, the business journal reported Nov. 29. The proposal, which is subject to the approval of the Public Utilities Commission of Ohio, would reportedly result in an increase of 2 cents to the monthly bill of an average residential customer of AEP Ohio.
"It is an economic development proposal designed to encourage or support increased utilization or expansion of automaker facilities in AEP Ohio's service territory," Columbus Business First quoted AEP spokeswoman Melissa McHenry as having said in an emailed statement. "So an auto manufacturing facility could factor a potential ratemaking benefit into its business case if it is considering expansion or increased utilization of an existing plant."
Under the proposal, eligible automakers would be granted a $10 credit for every megawatt-hour they use above their electricity usage in 2009, according to the publication, and the credit could be used for one or multiple facilities.
AEP Ohio delivers electricity to nearly 1.5 million customers, including Honda of America Manufacturing, a unit of Honda Motor Company Ltd.'s North American subsidiary American Honda Motor Co. Inc.
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