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AEP Ohio 2020 Base Rate Case

In June 2020, AEP Ohio filed a rate case application with the Public Utilities Commission of Ohio. The application outlined our planned investments in the distribution system, demonstrated our past success in making reliability improvements, and asked the PUCO to allow us to continue making investments that make the grid more reliable.

The PUCO rate case process examines AEP Ohio’s operations and gives the public an opportunity to have their voice heard. During the proceedings the PUCO:

  • Reviewed AEP Ohio’s financial information
  • Took input from the Ohio Consumers’ Council and other customer advocacy groups, including commercial and industrial customers
  • Held public hearings where AEP Ohio customers could share their thoughts
  • Oversaw formal hearings where witnesses testified in favor of or in opposition to the application

Rate Case Settlement

In March 2021, AEP Ohio along with 13 other parties, representing a variety of groups including residential, commercial and industrial customers announced a settlement in the case. The agreement enables AEP Ohio to expand and continue several programs it has put in place to address reliability and resiliency. Under the terms of the agreement, AEP Ohio will invest over the next four years in improvements that help prevent power outages, make restoring service safer and faster, and help the electric grid operate more efficiently.

The PUCO approved the settlement on November 17, 2021.

Benefits For You

It's all about keeping the power flowing to homes and businesses across Ohio and improving your service. The additional investment would mean:

  • A smarter, more resilient grid
  • More reliable electric service
  • More control over how you use energy

These investments will enable updates in technology, infrastructure, and programs that will modernize the grid, drive energy efficiency, and - over time - save you, our customers, time and money.

Rate Impacts

New rates will go into effect on December 1, 2021. A typical residential customer using 1,000 kilowatt-hours each month will see a small decrease in their bill compared to when the case was originally filed with the PUCO.

Customers will see an increase in the fixed customer charge from $8.20 to $10, but this change is offset by the reduction or elimination of other rates.

In addition, AEP Ohio is eliminating the reconnection fee for customers who have their service disconnect for non-payment.

These rates only impact the distribution portion of your bill. The generation charges are determined through a separate process, or by your contract with a competitive electric supplier. The transmission portion of your bill undergoes a separate rate review process.

Base rates reflect the cost of delivering electricity to our customers, and inform the cost paid by our customers. These costs pay for the distribution system – the poles, wires and substations you see in your community – along with all of the costs it takes to keep this system running. These costs include reading meters, producing bills and customer service activities.

In a 2018 agreement between AEP Ohio and several others, we committed to filing a case to update the base rates for providing electric service by June 1, 2020. In light of the uncertainty the COVID-19 pandemic has created, we are also requesting that the PUCO delay the procedural schedule of the case by 60-days to avoid placing additional stress on our customers.

New rates will become effective December 1, 2021.

Our crews work every day to make your service more reliable and offer you more control over how you use energy. Under the approved settlement, we will continue to replace aging equipment and upgrade it to smarter more efficient technology. The efficiency savings helps keep your energy costs down and the technology also helps us restore outages faster when they happen. But technology can’t stop a tree from taking down a wire, so we also plan to continue investing in trimming trees that are a threat to power lines. All of this work helps us keep your lights on.

The customer charge is a fixed charge that appears on every customer’s bill. It’s supposed to cover the fixed costs of providing electric service. Those are costs that don’t change with the amount of electricity you use. The current fee has been in place for more than a decade. The new rate of $10 per month brings the customer charge in line with the rate of inflation we’ve seen since then.

The reconnection fee will now be $0. This is down from the prior level of $53 to $119 depending on the time of day and/or day of week.

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