Is energy cost going up ?
Adjust Electric Distribution Rates
AEP Ohio Requests PUCO Approval to Adjust Electric Distribution Rates
COLUMBUS, OH — May 30, 2025 — AEP Ohio has filed a request with the Public Utilities Commission of Ohio (PUCO) to adjust its electric distribution base rates, a move that could impact the monthly electric bills of residential customers across the state. This request marks a step in the formal regulatory process that determines how much customers pay for the infrastructure that delivers electricity to their homes and businesses.
What Are Distribution Base Rates?
Distribution base rates cover the cost of maintaining and upgrading the infrastructure that delivers electricity — including poles, wires, substations, transformers, and the field crews who keep it all running. These are separate from the generation and transmission portions of your bill and represent the essential “delivery” part of your electric service.
What Could This Mean for Customers?
If approved by PUCO, AEP Ohio’s proposed adjustment would result in a 2.14% increase in residential base rates. For a typical customer using 1,000 kilowatt-hours (kWh) per month, this equates to about $3.95 more per month.
However, the final impact on customer bills will depend on PUCO’s review, which includes input from consumer advocates, public hearings, and a detailed examination of the utility’s expenditures.
Why the Change?
AEP Ohio says the proposed rate adjustment is necessary to keep pace with aging infrastructure, growing demand, and increasingly severe weather events. The funds from the new rates would help:
• Replace and modernize critical equipment like poles and transformers.
• Strengthen the system with enhanced protections to reduce outages.
• Prepare the grid for future growth and environmental stresses.
“This is about keeping the lights on — safely, reliably, and sustainably,” said AEP Ohio in a statement. “We’re committed to maintaining a resilient grid that supports homes and businesses across our 61-county service area.”
Support for Struggling Customers
Recognizing that even modest increases can be burdensome, especially during times of inflation, AEP Ohio is offering resources to help. These include payment plans, energy-saving tools, and referrals to state and federal assistance programs. Customers can explore their options at AEPOhio.com.
What Happens Next?
The PUCO will now begin its formal review process, which could take over a year. During this time, the Commission will evaluate the necessity and fairness of the requested increase and encourage public participation through hearings and written comments.
AEP Ohio emphasizes that no new rates will go into effect until the PUCO completes its review and issues a ruling.
For more information about the proposed rate adjustment, visit AEPOhio.com/BaseCase.
⸻
This article is part of our continuing coverage on energy and infrastructure updates affecting Ohio communities.
To read more click the following link