OHIO, USA — AEP Ohio customers may see their electric bill go up again next year.
The company announced Wednesday they filed an agreement with the Public Utilities Commission of Ohio that would end up increasing customers' bills. The move comes just a few months after they raised their rates by 28%.
In an email sent to AEP customers, they stated that they have taken community feedback and worked with various organizations to find the best balance of affordability while continuing to provide the resources needed to keep the power flow stable.
If their agreement is approved, AEP said the average customer using 1,000 kilowatt-hours of electricity would see an average annual increase of less than 1% per month beginning after June 2024.
Before approval, the agreement must be extensively reviewed by PUCO.
AEP says this is what customers can expect if the agreement is approved:
- Improved Reliability and Resiliency: The agreement will allow AEP Ohio to invest more than $1.5 billion in our distribution grid over the four-year ESP term beginning in June 2024 to address aging infrastructure and serve new customers in growing communities across our 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 of this year, 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.
- Smart Thermostat Demand Response Program: Additionally, customers will be eligible to receive rebates if they participate in a smart thermostat 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.
- 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.
- Economic Development Grants: AEP Ohio will make $900,000 annually in grants available to economically disadvantaged and rural communities with 50% of the funding provided by AEP shareholders. We will work with state, regional and local development partners and private sector leaders to promote investment and bring new jobs to these communities.