... approved electricity security plan (ESP) by the Public Utility Commission of Ohio (PUCO) is supportive of Ohio Power Co. (OPCO)'s credit profile. The main provisions of the ESP include approval of a distribution investment rider (DIR) for investments in distribution infrastructure through May 2018. The ESP also includes OPCO's new capital structure with the debt/capital ratio increasing to about 52.5%. Inclusion of the DIR and a rider to recover storm expenses in the approved ESP will reduce regulatory lag, in Fitch Ratings' opinion. Moderating Capex Cycle: OPCO's capex cycle is expected to moderate over next three years. The current management forecast is for $1.2 billion to be spent though 2017, including about $565 million on distribution infrastructure with current recovery. In Fitch's view, the current capex cycle is manageable. Credit Metrics: Fitch expects OPCO's adjusted debt/EBITDAR ratio to remain at the current levels of around...
