The City of Mishawaka has evaluated overall electric costs in light of significant increases in transmission charges from the PJM regional network. The City’s rates have a baseline PJM component and as costs exceed that $10 million allowance, a pass-through adjustment will be needed annually to recover the difference.
AEP is investing over $1 billion dollars in transmission assets that impact all power customers in the region. This is driving cost increases across the board and annual costs now exceed the allowance in the City’s base rates. PJM Transmission charges could not be locked in through the Wolverine agreement 2 years ago and are driving 100% of the pass-through need today.
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