AC Use to Heat Up Ohio Electric Bills During Hottest Time of Year
Columbus, OH - OHEnergyRatings.com warns all AEP Ohio customers currently relying on the utility's Standard Service Offer (SSO) that they will pay a little over 2% more for their electricity on June 1. Due in part to increases from last summer's PJM capacity auction, residential customers on the default rate could pay an average summer electric bill close to $200!
PJM capacity auction prices last summer surged 22% higher than the $269.92 megawatt-day rate in 2024. Prices for 2026 could have gone beyond $500 megawatt-day rate but were capped at $329.17 instead.
PJM operates the grid and power markets for thirteen states, including Ohio. Each year it holds a capacity auction to line up generators for the next year to be on stand by to provide energy during periods of peak demand. But with many fossil fuel plants being retired while hundreds of new generators waited on its interconnection queue, PJM is now grappling with a power supply shortage made worse by high demand from new data centers.
As a result, the AEP Ohio SSO electricity rate will rise to 10.167 cents per kWh, up from the current 9.94 cents per kWh. This new price will last until May 31, 2027.
Air Conditioning Will Cost You More This Summer
The summer months typically have the highest demand for electricity to run air conditioning due to hot summer temperatures. In 2025, July was the hottest month in Ohio with muggy, humid nights and hot daytime temperatures lasting for 20 days in much of the state. As a result, the average residential usage for July hit 1,230 kWh.
Energy analysts at OHEnergyRatings.com correlated EIA energy usage data with AEP Ohio's June 1 SSO rate. They found that customers during the height of a July heat wave could likely use 1,230 kWh again this summer. For that reason, they would face higher electricity bills reaching an average of $181.00. Some could easily go well over $200.
What AEP Ohio SSO Customers Can Do
Given today's stressful economics with rising food and fuel prices, Ohio electricity rates are getting harder to afford. For that reason, OHEnergyRatings.com wants to help AEP Ohio customers find more affordable electricity. Analysts urge customers to choose their own retail electric suppliers. Because many fixed rate plans currently have rates that will be lower than AEP Ohio's SSO on June 1, locking in a fixed rate now will help customers avoid paying more on their summer electricity bills and beyond, as well.
But because the new rates start June 1, customers must act now!
Karl Trollinger, CEO of Electricity Ratings, adds "These are frustrating times for working families paying high Columbus electricity rates. Once again, Ohio consumers must deal with large PJM auction price swings from their utility during a difficult economy. Fortunately, consumers can turn to retail providers when their utility's price-to-compare rate isn't the best solution. And that's why our mission is to help consumers find the best electricity rates and plans for their needs."
About OHEnergyRatings.com
OHEnergyRatings.com is a website operated by Electricity Ratings, LLC.
Electricity Ratings, LLC operates a network of energy shopping websites serving 17 states and 56 utilities, providing our energy comparison and ratings service to over 80 million customers. We provide our customers with the power to choose the best providers through our consumer reviews platform which provides a reliable, unbiased source of valuable consumer insight. And we back that up by offering in-depth energy company service analysis, personalized recommendations, and practical advice. Our mission is to help consumers harness the power of information to find, compare, and buy electricity and energy services from the best providers.
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