Since 1996, the Commission staff has closely monitored AEP/Kentucky’s system and the level of consumer complaints, with particular attention paid to the Hazard Service Area (HSA). Annual electric system inspections have noted various projects, such as sectionalizing, right-of-way clearing, and conductor change-outs, which have been completed or were in progress. The Commission’s 2001 Inspection Report noted that the service interruptions reported in AEP/Kentucky’s Year 2000 outage report are probable violations of 807 KAR 5:041, Section 5(1) (Maintenance and Continuity of Service).

AEP/Kentucky has invested significant capital since 1996 in an effort to increase service reliability in its service territory, and specifically in the Hazard Service Area. As a result of AEP/Kentucky’s efforts, the SAIDI index for the Hazard Service Area has improved somewhat in the period 1996 through 2001, but it is still significantly higher than the average for all of AEP/Kentucky.

The main focus of this project was to review AEP/Kentucky’s management and operations efforts regarding the maintenance of service quality and service reliability to customers of the Hazard Service Area. A review of AEP/Kentucky’s current initiatives was included in the evaluation. It is Schumaker & Company’s understanding that both the Commission and AEP/Kentucky seek viable means by which the Hazard Service Area’s distribution and transmission systems can be improved and adequately maintained, providing ratepayers with an acceptable, reliable electrical system in a cost-effective manner.....(Read more...)