We’ve already seen it this summer — extreme heat placing a significant burden on the electric grid. So much so that electric companies, like AEP Ohio, are asking customers to reduce energy use during periods of peak demand to help lessen strain on the grid and prevent power outages.
Adjusting your routine can feel inconvenient, especially when you’re trying to stay cool during a heatwave. These public appeals for energy conservation are often the last step in a long chain of actions utilities take to keep the grid stable. Before we ask for your help reducing demand on the grid, AEP Ohio takes several other actions behind the scenes.
Learn more about the role PJM, the regional grid operator, plays in helping balance electric demand.
Business Demand Response Program
AEP Ohio has agreements in place with many commercial and industrial customers that can help quickly reduce energy usage in short periods of time, reducing strain on the electric grid. They are typically among the first to reduce or shift their energy use during peak times by temporarily pulling back on operations. For example, this could mean a manufacturing facility pauses its production lines to quickly reduce energy.
Smart Thermostat Demand Response Program
Our Power Rewards: Smart Thermostat program rewards customers for reducing their electricity use when energy demand is high. On days when electricity demand is at its highest, or when distribution equipment is constrained, AEP Ohio may initiate an energy conservation event for those enrolled in the program.
Immediately before an event, your home may be pre-cooled in the summer or pre-heated in the winter by remotely adjusting your thermostat up or down a few degrees. Depending on how well it is insulated, your home should remain comfortable. While the event is underway, a signal will be sent to your smart thermostat to temporarily adjust your temperature set point by no more than 3 degrees. Your home will not instantly become warmer or colder. In fact, you may not notice any temperature change at all. At the end of the event, your thermostat returns to its target temperature and your original schedule.
And if you participate in at least 75% of the Power Rewards peak demand events throughout the year, you’ll also receive a $25 digital gift card annually.
Between the end of June and July 7, five energy conservation events were called with an average of 83% of customers enrolled in our Smart Thermostat Demand Response program choosing to participate. These proactive efforts to reduce energy usage have resulted in approximately 15 megawatts shifted from peak times, depending on the number of participating customers.
Time-of-Use Tariff
This residential electric rate is tiered based on when you use power. Usage during off-peak periods is charged at a reduced rate, with a higher charge occurring during on-peak hours. This rate is designed to reward customers for helping to better balance demand on the electric grid.
All of this typically happens before you’re ever asked to reduce your electric usage or adjust your thermostat. However, even with all of these tools and programs in place, we still sometimes issue voluntary conservation requests to help protect the power grid in Ohio and beyond.
Answering Your Questions
Can’t large businesses just pull back on their energy usage when the grid is strained?
Many commercial and industrial customers have agreements with us to help them quickly reduce energy usage for short periods. These customers typically are the first to decrease or shift their energy consumption during peak times by temporarily scaling back operations.
Do my actions really make a difference?
Yes, the reality is that it takes all of us working together to make a difference — especially during peak demand. By working together and making smart energy choices, we can all contribute to a more resilient and reliable energy future.
Is there anything else you’re doing to ensure reliable power?
Yes, we’re continually working to improve the electric grid to ensure our customers have the power they need. We also recently recognized a ruling by the Public Utilities Commission of Ohio (PUCO) that addresses the power needs of Ohio’s growing data center industry while protecting AEP Ohio’s other customers. Read more here.
Saving energy can help you save money on your electric bill, but it also helps protect the electric grid and the power you rely on.
I want to enroll but I don’t know what url is
It’s a great program, Edward. We’re glad to hear you want to participate. Please visit AEPOhio.com/PowerRewards and scroll down to where it says Ready to Get Started? From there, select whether you need or have a smart thermostat and follow the steps for each.
this is a total scam to justify higher costs while Aep records record profits and pays off Puco to look other way and do as they want every time you reduce usage you will notice the rates and fees go higher i do not care about power in other states thats your chioce to give power to them we recieve no benfit for saving power usage just higher bills cause your mad we tried to save money solar panels are going up i cant wait to shut power off from you crooks
For residential the $25 gift card simply isn’t enough incentive to attract me. A per event system would be much more attractive. Also I own a home standby generator, transferring to generator sounds like a better option than turning down my thermostat.
Hello, I would like to know why my electric bill is so HIGH. I live ALONE, in a one story house, use LESS water, use LESS electric. Home is total electric. LESS laundry, Less cooking (microwave), bathing for ONE, etc. etc. etc. My appliances are the energy star-saver, and the electric NEW water heater also, and stove only three years old. Had 14inches insulation put in attic area, NEW central air conditioner. It really is depressing as last winter I had bills for $700.00 and it was NOT that cold, nor bunches of ice or snow. I am low income, been on permanent disability since I was 37 years old, am now 74 years old. This really is awful, and I know I am not the only one with this problem. You would think something would be done about the rediculusly high electric prices, Damn, this is AMERICA!!!
Hi Mary. All-electric homes tend to have higher bills in the winter due to electric heating. Please reach out to our Customer Solutions Center at 800-672-2231 or take a two-minute survey to see what bill assistance options are available to you at AEPOhio.com/BillHelp.
Which hours would reduced power rates be lowest and highest? And, by how much?
Who would be responsible for installation of new thermostat?
John, you can learn more about our Time-of-Use rates here. Customers are responsible for installing their thermostats to participate in the Power Rewards program.
I’m not sure of this program, but I’m thinking about it. I’m wanting to know why my bill has went up so much? I’m not understanding why. If I could get a response I’d greatly appreciate it. Thank you
Dannette, we’re glad to hear you’re considering the Power Rewards program. We’re proud to be able to offer it. The blog team does not have access to customer account information, but we can share that usage is the biggest driver of customer bills. When the temperatures rise in the hot summer months, usage tends to increase as well, even if you don’t adjust your thermostat. The steamy weather means air conditioners have to work or longer harder to maintain the home’s temperature. You can review your usage on your Energy Dashboard online or give the Customer Solutions team a call at 800-672-2231.
What typically are the peak times? Thank you.
Hi Karen. For the Time-of-Use rate, summer on-peak hours are 2-6 p.m. Winter on-peak hours are 9-6 a.m. On-peak hours apply to all weekdays, except New Year’s Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Learn more here.
How do I enroll in the smart thermostat do you provide and install them
Carla, we do not provide or install smart thermostats for the Power Rewards program. If you need a smart thermostat, there are options available for purchase at AEPOhio.com/ShopSmart — including some at no cost after instant savings. If you purchase your smart thermostat somewhere else, or already have one, please visit AEPOhio.com/PowerRewards to enroll.
Thanks. This is important.