AEP-Ohio received approval from the PUCO for its electric security plan and distribution rate case. The order modified the settlement to remove some base generation rate increases and approved caps on the share of customers that can contract with alternative suppliers through 2014. The PUCO also approved setting standard service offer rates through a competitive bidding process starting in 2015. The NYMEX natural gas settlement price fell in December, lowering the price to beat for DEO and Columbia Gas customers. The summary recommends that DEO customers check their bills to ensure they are on the correct natural gas rate plan.

1. Newsletter January 2012
AEP-Ohio Update Natural Gas Update
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On December 14 , the Public Utilities Commission of
The NYMEX settlement price at the end of December
Ohio (PUCO) issued an order that:
was $3.084 per thousand cubic feet (Mcf), down 8%
x Modified and approved the settlement filed on from $3.364 at the end of November. For Dominion
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September 7 in AEP’s electric security plan East Ohio (DEO) commercial and residential customers
(ESP) proceeding under Choice, the price to beat is NYMEX plus $1, or
x Approved the settlement in AEP’s distribution $4.084 per Mcf beginning in mid-January. Columbia
rate case Gas of Ohio’s price to beat is NYMEX plus $0.188 per
x Approved the proposed merger of Ohio Power hundred cubic feet (CCF), or $0.4964 per CCF for
and Columbus Southern Power to form AEP- January.
Ohio
If you are a DEO residential or small commercial
As directed, AEP filed compliance tariffs on December customer who has defaulted back to DEO’s variable
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23 and specified that these rates will take effect on rate program after having contracted with another
bills rendered on or after January 1, 2012. supplier, we recommend that you check your natural
gas bill to be sure that you are being charged the
Generation Standard Choice Offer (SCO) rate. If you see that you
The PUCO modified the ESP settlement to remove are being charged the Standard Service Offer (SSO)
some of the base generation rate increases you will automatically be bumped to the Monthly
recommended by the settlement. The order approves Variable Rate (MVR) after two months. You may be
the plan to set standard service offer (SSO) rates on paying more than the SCO rate when subject to the
and after June 1, 2015 through a competitive bidding MVR. You should call DEO and ask to be switched to
process. the SCO rate. If you have any questions about your
natural gas bill, send us a copy and we will take a look.
The PUCO approved the proposed caps through 2014 There is more information on DEO’s natural gas prices
on the share of customers who can contract with an on our blog at www.BrakeyEnergy.com/blog .™
alternative supplier for generation services at a
favorable capacity price:
x 21% in 2012,
New mailing address
x 31% in 2013, and
x 41% in 2014. Please make a note of our new mailing address:
The order directs that these caps will be maintained by Brakey Energy, Inc.
customer class. It is critical to get in line for generation P.O. Box 202720
shopping as soon as possible. That way, if you miss Shaker Heights, Ohio 44120
2012, you might qualify by 2013 or 2014. Retail
suppliers who serve customers above these We also have a new fax number: 216-359-0035
percentages will have to an additional capacity charge;
this may cause suppliers to be unable to serve
additional customers until later years.™ CALENDAR OF EVENTS
16TH ANNUAL OHIO ENERGY MANAGEMENT
CONFERENCE
THE COLUMBUS RENAISSANCE HOTEL
Welcome to our new clients 50 NORTH THIRD STREET, COLUMBUS
J.H. Routh Packing Company DRS Industries FEBRUARY 21-22, 2012
Sandusky, Ohio Holland, Ohio See www.mecseminars.com for more information.™