Compliance Audit of the Distribution Investment Rider of Ohio Power Company

Public Utilities Commission Of Ohio

Buyer seeks an independent auditor to review the accounting accuracy, prudency, and compliance of Ohio Power Company's Distribution Investment Rider (DIR). The auditor will review 2024 quarterly filings and assess capital additions, tax implementations, and compliance with prior Commission orders. The review includes verifying plant balances, analyzing capitalization policies, and confirming proper implementation of the Tax Cuts and Jobs Act of 2017.

• 4/16/2025 - Proposal Due Date
• 4/30/2025 - Award audit (Commission Order)
• 4/30/2025 - Audit Conducted
• 9/26/2025 - Draft audit report presented to Staff
• 10/14/2025 - Final audit report filed with Commission

• Familiarity with GAAP
• Knowledge of FERC Uniform System of Accounts
• Understanding of accounting and tax changes 2015-2024
• Knowledge of Tax Cuts and Jobs Act of 2017

• Review Opinion and Orders from multiple case filings for DIR compliance
• Assess accounting accuracy, mathematical accuracy, prudence, and compliance with approved DIR
• Review all additions, retirements, transfers, and adjustments to plant in-service
• Identify, quantify, and explain significant net plant increases within individual accounts
• Verify DIR plant balances with FERC Form 1 for year 2024
• Review AEP's 2024 quarterly filings including the final May 2025 filing
• Review changes in capitalization policy and assess impact on DIR
• Assess implementation of Tax Cuts and Jobs Act of 2017
• Review capital additions recovered through other authorized riders
• Verify incremental plant in-service was used and useful