Has anyone worked with AEP Ohio's economic development rates recently? I have a plastics manufacturer in Columbus that's expanding their operations and adding 500 new jobs. They think they might qualify for Schedule ED but the criteria seems pretty specific about new load vs existing load. Any experience with AEP's qualification process?
AEP Ohio - Economic development rate eligibility question
Marilyn - AEP is pretty strict about the ED rate. The new load has to be truly incremental, not just increased production on existing equipment. They'll want detailed load projections and proof that the expansion wouldn't happen without the rate incentive. The application process takes 3-4 months typically.
Howard, that sounds right. The customer is installing all new production lines, so it should qualify as incremental load. The rate discount could save them $15,000-20,000 per month once they're at full production. Definitely worth pursuing.
Make sure they apply before starting construction. AEP won't backdate the rate even if you qualify. Also check if they need to commit to maintaining employment levels - that's usually part of the deal.
Good point Arnold. I'll make sure they get the application in ASAP. The employment commitment shouldn't be an issue since they're genuinely expanding. Thanks for the heads up!