Todd Snitchler

Ohio’s top statewide public school organizations did not mince words this week, telling the Public Utilities Commission of Ohio that the controversial new American Electric Power rate plan “will be devastating to school districts.”

In a letter Tuesday to PUCO Chairman Todd Snitchler, groups representing superintendents, school boards and treasurers said that based on an early analysis, AEP’s new rates will mean double-digit percentage increases for hundreds of school buildings, some in excess of 50 percent.

“Rate increases, such as those that are becoming evident with the new ESP (electric security plan), will be devastating to school districts,” the letter said. “These new rates will mean further cuts in staff and programs if nothing is done to alleviate the impact on schools.”

After getting hit with an avalanche of criticism for the rate plan approved in December, including well over 200 complaints from small businesses and schools that are feeling the brunt of the rate increase, the PUCO recently agreed to revisit the plan in an effort to reduce the impact on small businesses. Snitchler has said he expects to finish by the end of the month.

Schools want to make sure they also are part of any solution. “We ask that you consider a special rate for school districts that more fully recognizes their favorable usage patterns,” the letter said. “Additionally, we request that you lift the capacity cap for all schools in order that savings could be achieved through 3rd party generation supply.”

Rates are rising because of provisions the PUCO approved that shift costs from the largest businesses to small ones, and because of AEP costs that were deferred from previous years. It adds up to 40 percent increases for some business customers.

Dispatch reporting warned of the huge rate increases in early December, more than a week before the PUCO approved the plan.