GAHANNA, Ohio (April 03, 2024) — AEP Ohio, an American Electric Power (Nasdaq: AEP) company, today received approval of its Electric Security Plan (ESP) from the Public Utilities Commission of Ohio (PUCO). The ESP outlines AEP Ohio’s commitment to continue making reliability-focused improvements to the electric grid, support economic development, and create new programs that allow customers to manage their energy use and save money. The order also makes enhancements to the Standard Service Offer (SSO) auction process. These process changes are designed to produce more stable generation rates for customers who do not choose an energy supplier or who do not participate in a governmental aggregation program. 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 on June 1st.
“Our Electric Security Plan lays out a clear path to improve reliability for our customers. We understand many of our customers are experiencing higher prices due to rising inflation and we worked hard to limit rate impacts in this agreement. Our team also recognizes the importance of working efficiently and effectively as we execute our plan,” said Marc Reitter, AEP Ohio president and chief operating officer. “Today’s approval allows us 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. Under the ESP V term, which will run from June 2024 through May 2028, 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.”
“We know our customers depend on, and deserve, to have power when they need it. The AEP Ohio team has worked with PUCO staff and numerous other groups including the Citizens Utility Board of Ohio which represents residential and small commercial customers, parties representing low-income customers, large energy users, commercial energy users and environmental advocacy groups to ensure that we are hearing from all of our customers,” Reitter added.
The ESP was developed with the goal of reducing power outages for customers and making the electric grid able to hold up against stronger storms and other situations that might cause outages.
The ESP also creates new programs that enable customers to reduce their energy use. A new program, the High Efficiency for Low-Income Program (HELP) will provide $10 million annually to support low-income customers in making their homes more energy-efficient through upgraded lighting, heating equipment and refrigerators. Additionally, under the commission's order approving the stipulation, AEP Ohio will make a contribution of $400,000 annually throughout the 4-year term to its Neighbor to Neighbor program, administered by Dollar Energy Fund, which provides eligible customers with a utility assistance grant applied directly to their bill.
Customers also will be eligible to receive rebates if they participate in a smart thermostat demand response program.
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.
AEP Ohio submitted the ESP plan in January 2023. Following a public hearing and input process, AEP Ohio and several parties submitted a settlement agreement for the PUCO’s consideration in September 2023.
About AEP Ohio
AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power. AEP Ohio provides electricity to 1.5 million customers. News and information about AEP Ohio can be found at AEPOhio.com.
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP’s approximately 16,700 employees operate and maintain the nation’s largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 5.5 million regulated customers in 11 states. AEP also is one of the nation’s largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 7,100 megawatts of renewable energy. The company’s plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2030. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2000 levels by 2030 and has committed to achieving net zero by 2050. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP’s family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.