Do Bill Changes Mean Higher Rates?
Ohio energy shoppers expect affordable and reliable power for their homes and businesses. However, it seems like bills are on the rise and customers want to understand why. That’s why PUCO has sided with AEP Ohio on changing how bills look to make costs a lot more clear. But will these changes also affect how you shop for retail electric suppliers? We can find out by asking why AEP Ohio customers brace for bill changes and higher distribution rates.
PUCO Adopts Bill Format Changes
For the most part, the recent ruling is all about how your AEP Ohio energy bills will look. The utility requested that bills include messaging space where retailers can explain when fixed rates will end. In addition, bills will clearly list price to compare rates and explain how to use that information to save money.
As you can guess, this makes it easier to shop for the best possible electricity rates. It also helps that all of the information you need for shopping will be on a single document you get every month.
AEP Ohio Rate Changes Your Bill
However, the news isn’t all good. Back in January, AEP Ohio asked PUCO for a $97 million revenue increase. Community opposition, the City of Columbus, and the city’s school district all opposed the hike. As a result, PUCO approved an $11 million increase instead.
It’s important to remember that utilities only profit from distribution charges. And, AEP Ohio’s 9.84 percent revenue increase falls in line with current national average. The utility estimates this rate case settlement will lower bills by more than $1 a month for the average customers. AEP Ohio also estimates that due to the 2018 the Tax Cuts and Jobs Act, customers will receive $105 million over 18 months as bill reductions.
However, the Ohio Environmental Council predicts that customer rates could rise by as much as $4.38 a month by the end of the year and an average of $10.28 a month by 2028! This is a likely result of distribution rate changes that are expected to come about over the next few years.
In effect, Ohio bills may fall in the short term, but those savings could soon be lost over the next few years.
Brace For Ohio Rate Hikes
As we’ve said before, data centers entering the grid will cause much higher energy demand. This also means rates are likely to increase, even if data centers have to pay new tariffs. So it’s more important than ever to shop for the best deals in town.
You can always start your shopping right here at https://www.ohenergyratings.com. We’re also your best source for news and tips that could affect your bills.