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AEP Ohio's Electric Security Plan

The Public Utilities Commission of Ohio (PUCO) recently approved AEP Ohio’s reliability and resiliency investment plan. This plan continues our commitment to improve reliability, foster innovation and offer programs to help customers reduce energy usage and save money.

A typical residential customer using 1,000 kWh per month will see an average monthly increase of less than 1% — or about $1.50 — throughout the four-year ESP term with some costs beginning to appear on electric bills in late 2024.

Customer Benefits - What You Can Expect

Proactive Reliability & Grid Resiliency Investments
The newly approved 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. This 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
This investment plan includes enhancements to the Standard Service Offer (SSO) auction process designed to produce more stable generation supply rates. Based on recent auction results, customers who receive their power supply through the SSO will see a reduction in the generation portion of monthly electric bills by approximately $30 beginning June 1.

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

Smart Thermostat Demand Response Program
Customers will be eligible to receive an initial $75 rebate if they purchase a qualified smart thermostat and are enrolled to participate in AEP Ohio’s Demand Response program. This program helps to protect our distribution system in times of peak usage and pays customers a $25 rebate for participating. Customers who already have a qualified smart thermostat will be eligible for a one-time $50 rebate for signing up for the Demand Response Program.

E3smart program
Educates and engages school children in AEP Ohio’s service territory from grades 4-12 about energy, how to save energy at their homes and learn about new energy-efficient technologies.

High Efficiency for Low-Income Program
Low-income customers may be eligible for funding through this new program to make their homes more energy-efficient through upgraded lighting, heating equipment, insulation and appliances.


A typical residential customer using 1,000 kWh per month would see an average annual increase of less than 1% or $1.50 per month to their distribution charge beginning in June 2024 through May 2028. Additionally, customers who receive their power supply through the SSO will also see a reduction in the generation portion of monthly electric bills by approximately $30 beginning June 1.

The ESP 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 provides the resources necessary to keep power flowing.

The rates will take effect June 1, 2024 and will be adjusted through rate update filings docketed with the PUCO.

A primary focus of the ESP 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.

The plan would invest more than $1.5 billion in our distribution grid over the four-year ESP term beginning in June 2024. 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 making the electric grid able to hold up against stronger storms and other situations that might cause outages.

The ESP 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 electric bill, it also helps reduce the energy demand placed on the electric grid. In addition to the High Efficiency for Low Income Program, the ESP includes a supplemental program to support customers with incomes below 200-300% of the federal poverty level who would qualify for assistance purchasing more efficient high-energy use products for their homes as well as making their home more efficient overall. Additionally, AEP Ohio will make a contribution of $400,000 annually throughout the 4-year term to the Neighbor to Neighbor program, administered by Dollar Energy Fund, which provides eligible customers with a utility assistance grant applied directly to their electric bill.

The ESP includes a demand response program that 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 participate in up to 16 “demand response” events. This means during times of peak energy usage customers agree to participate in a reduction of the temperature in the winter and an increase in the summer. 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.

The ESP 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 plan includes a Public Transit & School Bus plug-in EV TOD tariff.

The plan 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.

We recognize that financial hardships happen, and sometimes you might need a little extra support paying your bill. Whether you need more time to pay or would like to set up a payment arrangement, we can work together to find the right option for you:

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