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.
Why doesn’t AEP have a program to encourage charging of electric vehicles during the nighttime?
Hi William. Great question! AEP Ohio offers four tariffs that encourage residential customers with an electric vehicle to charge their vehicles in off-peak times. If this is something you may be interested in, visit AEPOhio.com/PEV for more information or to enroll.
I’d like AEP or PUCO to again give discounts to residential customer using less than 750 kWh/month to incentivize people towards using less electricity and thus slowing down the need to build more power plants.
I thought that we saw a huge increase in our electric bills around July, 2023, and that
that increase was only going to last for two years. So, when will that be coming off our bills?
Diana, you may be referring to changes in the generation supply price, which changes every year following annual auctions held to set its price. If you receive your generation supply through AEP Ohio’s Standard Service Offer, you would have seen your generation supply increase in 2023, followed by a drop in 2024. It increased again this year starting last month, and these prices will not change until next summer. While the generation supply charge shows up on your AEP Ohio bill, it is not an AEP Ohio charge and we make no profit off of it. We pass the charge through, dollar for dollar, from the generation suppliers to the customers.
An increase will not keep the lights on. People are charging their electric cars and others are wasting electricity. Too many people and not enough grids. You did not plan properly and that is not the people’s problem.
Can you please tell me what the present AEP Base Rate is per KW used in Grove City, OH. You say the proposed rate increase is approximately 2.14% but 2.14% of what? Thank you.
Hi Tom. You can find your rate on the third page of your AEP Ohio bill, under the Notes from AEP Ohio section. Your price per kWh will be listed under Price-to-Compare.
Many people are currently having to choose between having the basics, like electricity, or having food for their families. Many cannot even afford to travel to work due to all of the rising costs. I understand improved equipment and maintenance do cost the company, however, with the systems you have added over the past few years, you should also be seeing some savings! No need to “physically” check meters, etc. It may take a time before you see a full return on those efforts, however, ultimately it is saving. So I am confused with so many continued increases. ADDITIONALLY, please stop the practice of aggregation and allow a customer to choose to NOT participate in these programs without having to jump through hoops in a surprise by being switched without consent of the customer. The customer is the one who pays the bill, not the municipality or anyone else. This practice of switching customers without their knowledge (many times) should be illegal!
AEP Ohio does not control the practice of aggregation — Ohio law allows it. You can read more at the PUCO’s aggregation website, including a link to opt out of aggregation programs.
When Gloria refers to physically checking meters, shes talking about the fact that most customers now have “smart” meters, which are read automatically wirelessly either by trucks running through your neighborhood or via wireless towers. Lastly, since we’re on the topic of customer billing, which states meter reading as one of the expenses, …….why did PUCO allow AEP to assess a “customer” charge? Now AEP is in the realm of your typical auto repair shop where they have a miscellaneous charge for rags, lubricants and bolts.
Customer Charge – AEP mentions this miscellaneous expense is for billing, meter reading, service line maintenance (cutting trees) and equipment.
My thoughts why this customer charge should be eliminated.
With more and more e-statements, this expense is nearing zero.
With automated meter reading, this expense should be zero.
Policies on tree trimming should be more effective, in other words, reducing the need to come back to the same areas for future work. If trees were planted in the vicinity of power lines, then remove them.
Between the generation and supply charges the electric bill has become a new car payment. We are paying for choices the state and its legislators are making in regard to AI energy needs; which most of us would never sign on to. We vastly increase our costs and lose jobs in the process.
Shameful at best.
Why was the practice of aggregation developed? Please answer that first.
You mentioned not being in control of practice of aggregation. However you are strategically creating these surcharges that make it impossible for those aggregates to negotiate and be of use to the communities that normally need them. Sure you’re not in direct control but AEP has played a major part on how they function because of the cost hikes. So it’s ok for AEP to negotiate or request for a higher rate through POCU, but we can’t negotiate a lower rate.
Hi Jonathan. We hope this helps answer your questions. Local jurisdictions choose to participate in community aggregations. AEP Ohio is not involved in it at all. Aggregation of retail electric loads is part of the Ohio Laws and Administrative Rules, specifically Section 4928.20 of the Ohio Revised Code. Ohio is deregulated and Energy Choice allows customers the ability to shop for alternative rates on their electricity supply. AEP Ohio cannot own generation and serves its Standard Service Offer customers through auctions. The auctions determine the price, and all generation costs are passed through to customers.