RESOLUTION REGARDING AEP PROPOSAL TO CONSTRUCT AN IGCC FACILITY
Passed September 15, 2005
WHEREAS, the Ohio steel industry is heavily energy dependent and is the largest single industrial user of energy in the state of Ohio; and WHEREAS, the American Electric Power Company ("AEP") has presented to the Public Utilities Commission of Ohio a proposal to construct and operate an Integrated Gasification Combined Cycle ("IGCC") power generating facility in Ohio. AEP has proposed that this IGCC facility should be paid for through a non-bypassable Provider of Last Resort ("POLR") charge; and WHEREAS, the Ohio Steel Industry Advisory Commission supports the development of break-through technology such as IGCC, but a recent Electric Power Research Institute (EPRI) study indicates that this technology is unproven, high-risk and more expensive than traditional coal fired electric generation technology; and WHEREAS, the Ohio Steel Industry Advisory Commission believes that Ohio should not be the test case for such technology if the risks are borne by Ohio ratepayers rather than AEP shareholders; and WHEREAS, the Ohio Steel Industry Advisory Commission believes that AEP's proposal for its Ohio customers to pay for 100 per cent of the IGCC facility while representing only 40 per cent of the AEP system wide load is inequitable; and WHEREAS, the Ohio Steel Industry Advisory Commission believes that AEP's proposal to recover IGCC costs via a non-bypassable charge is equivalent to creating a new stranded cost charge, which will further raise the cost of shopping for electricity in a competitive market and is unreasonable. NOW, THEREFORE, BE IT RESOLVED that the Ohio Steel Industry Advisory Commission after investigation and deliberation hereby requests that the Public Utilities Commission of Ohio deny AEP's proposal to construct an IGCC facility to be paid for through a non-bypassable charge to Ohio ratepayers.
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