Substitute House Bill 6 Proponent Testimony
Tom Froehle, Vice President External Affairs, AEP
June 12, 2019
Good Afternoon Chairman Wilson, Vice Chair McColley, Ranking Member Williams and members of the Senate
Energy and Public Utilities Committee. Thank you for the opportunity to provide Proponent Testimony on
Substitute House Bill 6.
My name is Tom Froehle, and I am the Vice President of External Affairs for American Electric Power (AEP)
testifying on behalf of AEP Ohio. AEP operates in 11 states, including in Ohio where we have our headquarters
in Columbus, 1.5 million customers and 6,500 employees.
House Bill 6 addresses Ohio’s increasing reliance on out-of-state generation. This bill addresses legacy
generation issues that have been plaguing the state for nearly a decade. It will allow AEP Ohio to make
investments in renewables that our customers have been asking us to provide. Specifically investments that
help drive economic development in the state. As a result, this legislation will keep and bring jobs to the state
of Ohio.
AEP is focused on bringing more renewable energy resources into our generation mix throughout our 11 state
territory for the last several years. Furthermore, all sectors of AEP Ohio customers are increasingly seeking
renewable energy sources for their electricity supply. Some large commercial customers have also expressed a
desire for renewable power from AEP Ohio. Having these resources readily available helps make Ohio a more
attractive place for these companies to locate and expand their operations.
HB 6 would allow AEP Ohio to offer renewable energy services to our customers and pose no financial risk to
other customers – this is an economic development tool that AEP Ohio has been seeking clarity on for several
years.
As it relates to Ohio Valley Electric Corporation (OVEC), HB 6 provides ongoing certainty for an important and
longstanding baseload generating asset. The bill also includes rates caps for customers while allowing for the
continued operation of OVEC generating units, which will provide certainty for AEP Ohio’s customers and Ohio
jobs.
Finally, this legislation would allow Ohio’s electric utilities to offer voluntary energy efficiency plans similar to
those operated by the state’s natural gas utilities, a model we believe can be successful. House Bill 6 in its
current form allows for AEP Ohio to finish implementation of currently-approved plans and phase out the
programs.
AEP Ohio believes this legislation puts Ohio on the path of a balanced energy policy that provides benefits to
all customers in this state
Thank you for the opportunity to provide testimony. I would be happy to answer any questions the committee
may have.