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The Public Utilities Commission of Ohio (“Commission”) issued an Opinion and Order regarding AEP Ohio’s ESP II on August 8, 2012 (“ESP II Order”). The Commission in its ESP II Order mandated that AEP Ohio hold energy and capacity auctions for SSO customers beginning June 1, 2015. AEP Ohio’s third Electric Security Plan (“ESP III”) in particular addressed the Commission’s mandate in the ESP II Order. On February 25, 2015, the Public Utilities Commission of Ohio (“PUCO” or “Commission”) modified and approved AEP Ohio’s electric security plan (“ESP III”) including a Competitive Bidding Process (“CBP”) to procure full requirements supply for AEP Ohio’s Standard Service Offer (“SSO”) customers. On November 23, 2016, AEP Ohio filed an application to modify and extend the term of its ESP III through May 31, 2024 (Case No. 16-1852-EL-SSO).  On August 25, 2017, AEP Ohio and numerous other parties filed a joint stipulation and recommendation which, if approved, would resolve all issues raised in the proceedings.  Through an April 25, 2018 Opinion and Order, the Commission modified and approved the joint stipulation and recommendation and authorized AEP Ohio to implement the ESP ("ESP IV") for the period June 1, 2018 through May 31, 2024.

AEP Ohio will seek to procure full requirements supply for its SSO customers through six (6) descending clock auctions.  These auctions are generally expected to occur in November and March and will procure a range of products, including 12-month, 24-month, and 36-month products. The delivery period for each contract is scheduled to start on the 1st of the month of June immediately following the auction.