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Ohio asks feds to audit power generators, American Electric Power -2.7%

  • Following a winter of forced power outages, Ohio's Public Utilities Commission is urging federal regulators to audit power generators’ claimed capabilities.
  • Heavy winter use strained the capacity of regional transmission organizations and electric companies such as American Electric Power (AEP -2.7%) and led to, at times, 22% (40K MW) of forced outages for generating capacity vs. the average rate of 7%.
  • The Ohio group says the increased outage rates are proof that generating units are not being properly maintained to ensure that they work during peak demand.
Comments (4)
  • rgperrin
    , contributor
    Comments (680) | Send Message
     
    Really? Sounds more like "proof" that years and years of non-supportive and even punitive regulation, including low allowed rates of return that strain the utilities' finances, have resulted in insufficient generating capacity. Who wants to invest in new construction (power plants, etc.) when the regulating authorities do not allow a fair return on investment? Where they do, in the south and southeast, for example, there are lower electricity rates and adequate capacity; where they don't, in the northeast and much of the mid-west, for example, there are higher electricity rates and inadequate capacity.
    19 May, 12:57 PM Reply Like
  • Ralph208
    , contributor
    Comments (45) | Send Message
     
    Rgperrin, I just read the article and was getting ready to write a comment when I read yours. No need to write mine you said it all.
    thank you
    Ralph208
    19 May, 05:03 PM Reply Like
  • Wilcoj
    , contributor
    Comments (29) | Send Message
     
    OH rates are non-regulated and companies cut to the bone in order to compete. Yet, the Gov. still regulates em for emissions, etc., etc. Companies must remain profitable or go under, thus they may sacrifice some on maintenance, etc. IMO AEP is a great company, but would be even greater withouit so many regulations.
    19 May, 02:37 PM Reply Like
  • marketnews09
    , contributor
    Comments (97) | Send Message
     
    If humans had as many regulations put on them as American companies, we would
    never get to grow up!!
    19 May, 04:25 PM Reply Like
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