Last month, AEP Ohio filed a request with the Public Utilities Commission of Ohio (PUCO) to increase our base electric distribution rates. You had questions — we’ve got answers. Read on for responses to what you asked about the most. You can also visit AEPOhio.com/BaseCase for more information.
What’s a base rate?
Distribution base rates reflect the cost of delivering electricity to customers. These costs pay for the distribution system — poles, wires, substations and other equipment — along with the costs required to keep this system running.
Why do you need an increase in base rates? Is it because of the data centers?
Our state has seen unprecedented growth and opportunity in recent years and the pressures on the electric system also have grown. Since AEP Ohio last filed a base rate case five years ago in 2020, the company has invested more than $2 billion to update and improve its distribution system. These investments are already in service and providing benefits to customers but are not included in current prices. AEP Ohio also has been absorbing higher costs, driven by inflation, since that time.
The base rate increase is needed to allow AEP Ohio to recover the costs of investments and to ensure we can continue to support, maintain and upgrade the system through new investments despite inflation. It also will allow us to respond to demands on the system because of growth and to repair or update aging infrastructure.
When will this go into effect?
These cases often take over a year to finalize from the date AEP Ohio files, so it will be some time before bills may be impacted. The PUCO will rigorously review AEP Ohio’s requested increase and seek input from a variety of customer groups to ensure that all costs we incur for customers are reasonable and necessary.
Didn’t you just raise rates?
No. Customers who receive their generation supply through AEP Ohio’s Standard Service Offer saw increased prices beginning this month due to recent electricity generation capacity auctions. These charges appear on your AEP Ohio bill, but we make no money on them. The charges are passed from generation suppliers directly to customers dollar-for-dollar and AEP Ohio does not profit from them. We explained more in a recent blog article.
How can I share my comments with the PUCO?
Complete case documents can be found on the PUCO’s Docketing Information System under case number 25-0392. You can also file a public comment on that site.
We’re here to help
AEP Ohio recognizes that a rate increase — no matter the amount — is never welcome news. We have several resources available for customers who are struggling to pay their bills. These include programs for low-income customers, guidance about government programs to assist with bills, payment arrangements and tools to manage energy usage. Visit AEPOhio.com/Assistance for information and resources.
