AEP Ohio's Electric Security Plan

FAQS

How will this impact my electric bill?

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.

What is the Electric Security Plan (ESP)?

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.

When will the new rates take effect?

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

What are you doing to improve my electric service?

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.

How will this strengthen the electric grid?

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.

What are you doing to ensure this increase is affordable for customers?

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.

What is the Smart Thermostat Demand Response Program?

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.

What time-of-day EV rates are offered with this plan?

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.

What economic development programs are included?

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.

I need help paying my electric bill. What should I do?

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:

• Visit AEPOhio.com/Assistance
• Message us on Facebook or X
• Call our Customer Solutions Team at 800.672.2231