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AEP Ohio’s Electric Security Plan

Updates To Aep Ohio’s Service Offer

AEP Ohio recently filed an Electric Security Plan (ESP) stipulation with the Public Utilities Commission of Ohio on September 6, 2023 that continues our commitment to improve reliability, foster innovation and offer programs to help customers reduce energy usage and save money. The plan would invest more than $1.5 billion in our distribution grid over the four-year ESP term beginning in June 2024. Read more below to learn about our new proposed plan and how it will help improve the reliability of your service.

What Does The Stipulation Mean For Customers?

Proactive Reliability & Grid Resiliency Investments - The agreement will allow AEP Ohio to invest more than $1.5 billion in critical distribution system investments to address aging infrastructure and serve new customers in our growing service territory.

Tree Maintenance Program - Fallen trees and branches are one of the main causes of power outages. Our planned investment will allow us to continue our four-year trim cycle to keep power lines free of trees and help reduce outages both inside and outside of the right-of-way.

Changes in the Standard Service Offer Bidding Process - In June 2023 AEP Ohio customers who had not chosen an alternative electric supplier, or who were not enrolled in a government aggregation program, experienced a significant increase in their generation rate as a result of the auction process. The ESP also includes enhancements to the Standard Service Offer (SSO) auction process designed to produce more stable SSO generation rates.

Time of Day (Off Peak) EV Charging Rates - Electric vehicle charging is also made more efficient by the settlement, offering EV owners with charging equipment at home the chance to save up to 70% off their distribution charges by charging their vehicles between midnight and 4 a.m.

Smart Thermostat Demand Response Program - Additionally, customers will be eligible to receive rebates if they participate in a smart thermostat and demand response program.

How will this impact my bill?

If approved as filed, customers would see an average monthly increase of less than 1% - or about $1.50 - each year of the ESP term.

Next Steps:

The PUCO will consider adopting the agreement and issue a decision. There is no specific timeline for them to take action.


Our current ESP expires next year and we need to get the new one in place to ensure a smooth transition. While we’ve already made significant improvements, more work needs to be done — and it must happen quickly as we plan for rapid economic growth, increased customer expectations and stronger storms that could impact the electric grid. The service we provide is essential and the investments enabled in this agreement will deliver benefits that better meet the needs of our customers.

The stipulation is a comprehensive, $1.5 billion plan to continue making reliability-focused improvements to the electric grid, support economic development, and create new programs that utilize technology for customers to manage their energy use and save money. AEP Ohio and several parties representing customers were able to agree to an ESP that balances affordability and providing the resources necessary to keep power flowing.

Under the ESP V term, which will run from June 2024 through May 2028, a typical residential customer using 1,000 kWh would see an average annual increase of less than 1% or $1.50 per month.

Under the agreement, the ESP term will begin on June 1, 2024. The rates will take effect after June 1, 2024 and will be adjusted through rate update filings docketed with the PUCO.

Our current ESP expires next year and we need to get the new one in place to ensure a smooth transition. The ESP stipulation is necessary to make key investments to enhance and upgrade its service reliability, provide low-income energy efficiency programs, offer residential demand response credits, and continue investments to support Ohio’s economic development. Further, the stipulation is necessary to set a new auction schedule to procure generation used in the Standard Service Offer (SSO) rate.

A primary focus of the ESP stipulation is to maintain and improve service reliability. This is mainly accomplished through the investments in vegetation management and upgrades in the distribution system.

The planned investment in vegetation management will allow us to continue the four-year trim cycle for trees inside the right-of-way. In addition, the plan will help us reduce outages caused by trees outside the right-of-way, which in 2021 was the leading contributor to outages.

Key investments into the distribution system are necessary to replace aging infrastructure and support customer growth.

Electric lines and hundreds of pieces of aging equipment across Ohio are targeted to be upgraded, replaced or rebuilt before they reach the end of their expected life. We’ve also identified circuits where customers have experienced multiple outages and will focus additional efforts on making improvements to their service. New lines and substations will be built to meet the evolving needs of AEP Ohio customers while at the same time supporting bringing new businesses to the state to grow the economy.

The ESP stipulation includes energy efficiency programs for residential customers designed to reduce overall energy use and save power during peak demand.

Reducing energy use for all residential customers, including low-income customers not only reduces their bill, it helps reduce the energy demand placed on the electric grid. In addition to the High Efficiency for Low Income Program, AEP Ohio has proposed a supplemental program to support customers with incomes below 200-300% of the federal poverty level would qualify for assistance purchasing more efficient high-energy use products for their homes as well as making their home more efficient overall.

The ESP stipulation proposes a demand response program which will provide residential customers with a $75 incentive toward the purchase of a new qualifying smart thermostat or a $50 enrollment incentive for residential customers with existing qualifying smart thermostats. By enrolling in the program, customers agree to participation in up to 16 “demand response” events that reduce (winter)/increase (summer) the temperature during times of peak energy usage. There would be no more than a 3-degree change in either direction during a peak demand event. Residential customers could override the settings, but would still receive the annual $25 incentive as long as the customer participates in at least 75% of demand response events over the course of a calendar year. If no events are called, the customer would still receive the $25 incentive.

This settlement includes two options for additional EV Time of Day (TOD) rates for residential customers. Option 1 is a whole home TOD rate with off peak savings of 40%. Option 2 is a separately metered TOD rate with an off-peak credit of 40% and a super off peak credit of 70% for all PEV kWh measured at the separate meter. Additionally, the settlement includes a Public Transit & School Bus plug-in EV TOD tariff.

The agreement also establishes an economic development program where AEP Ohio will work in partnership with state, regional, and local development partners and private sector leaders to attract new investment and job growth in economically distressed communities and rural areas throughout AEP Ohio’s service territory. The plan will make $900,000 annually in grants available with AEP shareholders funding 50 percent.

The PUCO will review the agreement filed by the parties and all testimony submitted. Finally, after extensive review, the PUCO will issue its opinion and order regarding the stipulation.

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