Your Questions Answered: Energy Demand, Reliability Efforts and Electric Bills

We’ve heard your questions about the electric grid, our proactive reliability efforts and your electric bills, and we are committed to keeping you informed about your electric service and the grid that brings you power. We’re answering our customers’ most asked questions below.

Energy Demand and Extreme Heat

Who is PJM and what do they do?

PJM is the independent system operator (ISO) and regional transmission organization (RTO) for an area that spans all or part of the states of Pennsylvania, New Jersey, Maryland (the name “PJM” comes from these three states that formed the original core), Delaware, Indiana, Illinois, Kentucky, Michigan, North Carolina, Ohio, Tennessee, Virginia, West Virginia and the District of Columbia.

PJM’s job is to balance the supply and demand of electricity by directing power generators — power plants, solar arrays, wind farms and more — on how much electricity to supply. They also coordinate with electric transmission owners to ensure high-voltage transmission lines and equipment operate correctly, allowing sufficient power to reach local substations. Local utilities, like AEP Ohio, are responsible for distributing electricity from these substations to homes and businesses.

Why does it seem like the electric grid sometimes struggles to operate during hot days?

AEP Ohio’s equipment is designed to withstand all kinds of severe weather, including extreme heat. During certain weather events like extreme heat or cold, grid struggles may be due to the supply and demand of electricity, not infrastructure issues.

Ohio is a deregulated state, so AEP Ohio cannot generate electricity. We work closely with PJM, who coordinates the flow of electricity in our region. When electricity generation cannot keep up with the demand, PJM may request utilities to call for energy conservation to avoid emergency measures like rolling blackouts.

Why does AEP Ohio call for energy conservation?

AEP Ohio sometimes proactively requests that customers be mindful of their energy use to prevent possibly overloading or damaging the system, which could lead to potential wide-spread outages. This is always our last resort. AEP Ohio works with larger users, including industrial and commercial businesses, to reduce their energy consumption before we ask residential consumers to consider reducing theirs.

Reliability Improvements

I received an email that AEP Ohio will be doing forestry maintenance and reliability improvement work near me. Can you provide me with an exact date when the work will take place?

We provide a general timeframe, usually within the coming weeks, because the exact timing is dependent on a variety of factors, including:

• Weather
• Crew availability
• Completion of previous jobs
• The type of repairs or maintenance needed

We always want to inform customers about work happening in their area, so we notify nearby customers even if it is not happening on their specific property.

Will my power be shut off if repairs or improvements are being made on lines and equipment that provide electricity to my home?

We do everything we can to avoid power outages during repairs and upgrades. However, there are situations when planned outages are necessary to allow crews to work safely. In those cases, we will provide advance notice to customers via phone message with outage details. Make sure we have your updated contact information by checking at AEPOhio.com/Alerts.

In some instances, our field personnel can work safely on energized equipment, but the power line may be placed on a more sensitive setting to ensure their safety. The setting shuts off power if something happens to the equipment that puts crews at risk. This kind of outage is unplanned and we will send a phone message afterward to explain what happened.

Electric Bills and Rates

If approved by the Public Utilities Commission of Ohio (PUCO), how will AEP Ohio use the base rate increase for infrastructure improvements?

We’re continuously making upgrades to our electric distribution system and equipment. Since 2020, AEP Ohio has invested over $2 billion to update and improve the system, ensuring safe and reliable power for our customers. If approved, the proposed base rate case will pay for distribution system costs, including:

• Replacing equipment like poles, wires and transformers.
• Adding protections to electrical equipment to prevent and reduce outages.
• Responding to growth, severe weather and other factors that put demands on the local electric grid.

What makes up the delivery charge and why does it change from month to month?

The delivery charge is associated with moving electricity through transmission lines and distribution lines, as well as the costs to maintain those lines and other distribution costs. Like your supply charge, the delivery charge is dependent on your energy consumption for the month and is based on that month’s transmission and distribution rates, which may fluctuate.

Visit AEPOhio.com/Rates for our bill calculation spreadsheets to help you understand the charges that make up your bill. The first tab of the document is where you add your billing information; the second tab includes definitions of different charges; and the third tab includes a breakdown of the rates and billing charges for an average residential bundled service.

Below are helpful tips to use the spreadsheet. You can click on each image to view a larger version.