What is the justification for the ECAR? Do the AEPCO financial forecast results indicate the need for an AEPCO ECAR?

The ECAR provides AEPCO a mechanism whereby the costs of environment compliance not reflected in its current rate tariffs may be recovered through the ECAR Tariff without the time and expense of filing a new rate case. Further the ECAR may provide a rates gradualism mechanism to smooth out sudden rate increases as a result of the costs of environmental compliance. During AEPCO’s financial forecast presentation to the Board of Directors in January, 2014, the possibility of an ECAR Surcharge based upon MATS mercury control costs and SNCR chemical costs was discussed. The ranges mentioned were $2.6 million per year to $5.1 million per year for the 2016-2020 timeframe, prior to any possible adjustments for O&M cost savings.