ENERGY-RESOURCE

AEP Ohio rate hike kicks in June 1: What it means to your electric bill

Mark Williams
The Columbus Dispatch
2016 - The American Electric Power (AEP) building in downtown Columbus , Ohio.    (Columbus Dispatch photo by Doral Chenoweth III)   Taken Sept. 11, 2016.

The cost of staying cool this summer for many AEP Ohio customers is about to get more expensive.

Rates are going up 28% on June 1, meaning an average residential customer who uses 1,000 kilowatt hours of electricity per month will see their bill increase from around $155 to $198. Customers will see the increase on bills generated on or after that day.

The increase does not apply to customers who have shopped for another provider or are covered by a government aggregation program.

Blame the increase on the higher cost of energy.

Utilities that distribute electricity, such as AEP Ohio, conduct auctions where the price of electricity is set. AEP Ohio has said the higher prices from the auctions are a result of assorted issues ranging from the war in Ukraine to global demand and supply chain problems.

AEP Ohio won't profit from the rate increase. It passes along those costs to customers.

This increase will remain in effect until May 31, 2024. AEP Ohio serves 1.5 million customers throughout the state.

This hike is separate from one that AEP Ohio is seeking that it filed with state regulators in January.

Under that proposal, customers would pay, on average, 2% more per year over the six years, or about $4 per month for a family that uses 1,000 kilowatt hours of electricity per month. That case is pending before the Public Utilities Commission of Ohio and wouldn't go into effect until at least June 2024.

AEP at the time said the increased revenue would help replace aging equipment as it reaches the end of its life expectancy, including 350 transformers and equipment in substations. The money would also be used to improve hundreds of circuits that led to power outages last summer, and to build new lines and substations needed to meet the changing needs of customers, AEP said.

How can I mitigate the increase?

AEP Ohio and the Public Utilities Commission of Ohio offer a number of tips to decrease electrical use during the summer months. Among them:

• Bump up the thermostat a few degrees. Raising the thermostat by 5 degrees can cut cooling costs by 20%.

• Cover your windows − especially those that get the most sunlight − during the day with light-colored shades. That can reduce cooling costs by 10% to 25%.

• Avoid using appliances that produce heat, such as ovens and dryers, when it’s hot outside.

• Set the ceiling fan to rotate counterclockwise so it pushes cool air down. Ceiling fans create a wind chill effect that can reduce the room temperature.

• Be sure floor returns and air vents are not covered.

Also, many consumers can shop around for lower rates. They can go to Energy Choice Ohio where they can compare electric and natural gas offers.

Many communities offer aggregation programs that can lower bills as well.

What should I do if I can't pay my bill?

AEP Ohio and other utilities offer several plans to help consumers with their utility bills, including budget payments and extended payment plans.

AEP Ohio offers grants of up to $500 under its Neighbor to Neighbor program and the Home Energy Assistance Program, which provides eligible Ohioans assistance with their home energy bills. There are income requirements for both programs.

mawilliams@dispatch.com

@BizMarkWilliams