We know there’s been a lot of chatter about changes to your electric bill. This is happening because of a few separate things going on with utility bill rates. As electric costs change, AEP Ohio’s priority remains being transparent with our customers while keeping bills fair, predictable and easy to understand.
We’re working hard to push for changes in this process so things are clearer for you and everyone else we serve. Ultimately, the impact to your electric bill each month continues to heavily depend on how much electricity you use and who you receive your electric generation supply from.
What Goes Into Your Bill
Generation, transmission and distribution are the three primary components of an electric bill. AEP Ohio is a distribution utility, but a customer’s AEP Ohio bill includes all three parts. With approval from state regulators, all three components change regularly because of the way Ohio’s electric regulations are structured.
- Generation charges include the cost to generate electricity — power plants, solar farms, etc.
- Transmission charges cover the costs of the high-voltage lines that move electricity from generation sources to communities.
- Distribution charges cover the local poles and wires in communities.
Ohioans can choose to receive their generation supply from a Competitive Retail Electric Service (CRES) provider or remain on AEP Ohio’s Standard Service Offer (SSO) rate, where generation charges are passed through, dollar for dollar, with no markup.
As of March 23, our records indicate that you receive the generation portion of your bill through AEP Ohio’s SSO.
Transmission and Distribution Rate Changes
All residential customers will experience an increase beginning with the April billing cycle due to the standard annual update to transmission rates under the FERC- and PUCO-approved formula. Beginning in April, an average residential AEP Ohio customer on the SSO rate using 1,000 kilowatt-hours (kWh) a month will see the following:
- Generation costs decreasing by about $7.16.
- Transmission costs increasing by about $7.90.
- Distribution costs decreasing by about $0.52.
The net impact is an increase of approximately $0.22 per month for the average AEP Ohio customer on our SSO rate.
These changes are separate from AEP Ohio’s base distribution rate case under review by the Public Utilities Commission of Ohio (PUCO). That case proposes an initial overall decrease of $1.22 to the distribution portion of AEP Ohio customers’ bills.
Investing in the Grid
AEP Ohio continues to invest in new and modernized transmission infrastructure to ensure the reliability and resilience of the electric grid. Many existing high-voltage transmission facilities were built decades ago and require investments to stay in service. These investments are critical to:
- Strengthening system reliability.
- Reducing the risk of outages.
- Protecting the grid.
- Supporting economic growth.
You Can Shop for Generation
Customers can visit EnergyChoice.Ohio.gov to compare CRES providers and their rates to AEP Ohio’s SSO rate.
We encourage you to take advantage of our bill assistance tool by completing a quick, 2-minute survey to see which programs you qualify for — there are options available for everyone.
Thank you so much for explaining this!!
Thank you for all you do.
Thanks to all the lineman and tree trimmers in Jefferson County: Vince Bowers, Doug Vankirk, and Lou Grafton, to name a few, for the quick restoration of electricity on two separate occasions during the recent spring storms. Natasha Rouse, widow of a 33 year tree trimmer.
Thank you for the monthly reports we have been receiving. It has been very helpful and informative. Seeing our weekly usage has helped us be more aware of turning lights and TV on when not necessary. We were away from home for a month and noticed the significant drop in our bill. Thank you and this team for keeping us informed.
We as customers should not have to pay for the upgrades to companies or charged to use the line but only for the electricity ones use.
LOVE IT MY BILL TO HIGH
We guys are ConMan! I’ve had an since I’ve been with AEP, I’ve seen some of the highest electric bills I’ve seen in my life!! You should be ashamed of yourself!
Why is AEP horrifically higher than Idaho Power?????? I cannot wrap my head around the power bills in Ohio. My heart goes out to every person in this state struggling to pay their electric bill.
Thank you for the update and your customer service.
Why do you paint such a rosy picture when in the end, you are increasing energy bills for your patrons. Hope your execs feel good about padding their pockets on behalf of the average, middle class consumer working hard to make ends meet while seeing increased costs in about everything. If I can be added to Paulding Putnam lines (since I’m right next to their services), I’ll do it in a heartbeat.
All these rates keep going up but we arent making anymore money. My electric bill is now more than my mortgage. Its ridiculous. I understand things need maintained but I feel sorry for single parents with children and the elderly right now. We have had to resort to putting groceries on a credit card bc the electric is ridiculous as well as the price of groceries. You should be wanting to help Americans not nickle and dime them. My electric bill has never been so high until those new meters were put in. Almost doubled in the price! Using the same amount of electric that I used last year but the bill is more than 300 more.