...Strong Credit Metrics: Ohio Power Co. (OPCO) plans $1.5 billion of capex through 2019, supporting a 4% average rate base growth 2017¡2019. A supportive regulatory construct will minimize the impact of the capex plan on OPCO's balance sheet. After significantly improved credit measures in 2016, Fitch Ratings expects OPCO's adjusted debt/EBITDAR to trend back in line to its historic range of 3.2x¡3.4x, which is strong for its current ratings. Supportive Regulatory Construct: OPCO's electricity security plan (ESP), effective until May 2018, is a key supporting element of its credit profile. The ESP's main provisions include a distribution investment rider (DIR), deferred asset recovery rider, 10.2% ROE and debt/capital of 52.5%. Inclusion of the DIR and a rider to recover storm expenses in the approved ESP reduces regulatory lag. Full revenue decoupling provides additional earnings stability. In November 2016, OPCO filed a proposal to modify and extend the ESP through May 2024. Low-Risk Business...
