Dive Summary:
- In a 6-1 decision, the Ohio Supreme Court ruled the Public Utilities Commission of Ohio (PUCO) had the right to find American Electric Power's (AEP) profits to be significantly excessive; the court rejected arguments contending the $42 million fine AEP paid was too lenient.
- A 2008 Ohio law gave both utilities leeway in raising rates and utility regulators authority in determining profits to be excessive
- In 2009, AEP reported $272 million in profits, which was easily the largest profit ever by an Ohio utility; after review, PUCO ordered AEP to return $42 million to its customers.
From the article:
"... At issue in the case is a state law that says a regulated utility cannot earn 'significantly excessive' profit.
The 2008 law gave utilities wide latitude to raise rates but also said the Public Utilities Commission of Ohio had the discretion to decide what constitutes excessive profit.
AEP 'is incorrect, and we hold that the statute is constitutional,' the majority opinion said. ..."