{"id":4991,"date":"2025-06-17T15:22:02","date_gmt":"2025-06-17T20:22:02","guid":{"rendered":"https:\/\/www.ohenergyratings.com\/blog\/?p=4991"},"modified":"2025-06-17T15:22:08","modified_gmt":"2025-06-17T20:22:08","slug":"aep-ohio-seeks-higher-distribution-rate","status":"publish","type":"post","link":"https:\/\/www.ohenergyratings.com\/blog\/aep-ohio-seeks-higher-distribution-rate\/","title":{"rendered":"AEP Ohio Seeks Higher Distribution Rate"},"content":{"rendered":"\n

Higher Bills For AEP Ohio Customers<\/h2>\n\n\n\n
\"AEP
Average August AC bills may see distribution charges pushing above $100; total bills over $200. Find out what these charges are for and what they cost you.<\/em><\/center><\/figcaption><\/figure><\/div>\n\n\n\n

Ohio energy customers have seen rising electricity rates<\/a> before. Especially as energy demand rises faster than current electricity supply. So it may not be a surprise when AEP Ohio<\/a><\/strong> filed to raise distribution rates. But this news comes right before what may be a hotter-than-normal summer and right after an auction rate hike. But how much could your electricity bills rise and what can you do about it? Let’s dive into why AEP Ohio<\/strong> seeks higher distribution rates.<\/p>\n\n\n\n

How High AEP Ohio Rates Rise?<\/h3>\n\n\n\n

Late last month, AEP Ohio<\/strong> announced that it was filing for a distribution rate hike<\/a>. Basically, the utility says the reason is to cover the cost for delivering electricity<\/a> to its customers. By and large, this includes maintaining poles, wires, and equipment, replacing old equipment, and strengthening the grid.<\/p>\n\n\n\n

Specifically, AEP Ohio<\/strong> seeks to raise its current Base Rate which is the combined cost of the Customer Service Charge and Monthly Energy Charge. The utility estimates that if you use 1000 kilowatt-hours (kWh)then the AEP Ohio<\/strong> base rate on your electricity bill<\/a> would rise by 2.14% or about $3.95 per month. <\/p>\n\n\n\n

Undoubtedly, all Ohio electricity customers must pay distribution charges. But these don’t come cheap. In fact, according to an EIA estimate, distribution charges make up about 60% of an average bill. Similarly, AEP Ohio<\/strong> has 25+ riders in its current tariff, with 12 affecting most residential customers. But, rider amounts can change without the same level of scrutiny<\/a> that a large rate filing gets. For this reason, it’s important to to show customers what they’re paying for. So, we’re going to layout what’s in the current AEP Ohio<\/strong> tariff.<\/p>\n\n\n\n

Electricity Distribution Costs<\/h3>\n\n\n\n

To begin, August is the month that usually with the highest bill of the year. For many homes, summer costs for cooling are getting to be as expensive as winter. The EIA estimates that Ohio uses an average of 1074 kWh<\/a> in August.<\/p>\n\n\n\n

\"AEP
Predicted AEP Ohio Distribution Charges for August 2025 assuming 1074 kWh of use.<\/em><\/center><\/figcaption><\/figure><\/div>\n\n\n\n

Shop Cheapest Electricity Rates<\/h3>\n\n\n\n

At $103.95, this kind of distribution charge is pretty hefty. As a result, the proposed hike will make it all the more difficult for many customers to pay their bills. But the real bad news is that this doesn’t cover the supply charges.<\/p>\n\n\n\n

Last year’s PJM capacity auction recently pushed AEP Ohio’s Price to Compare<\/a> up from 7.32 cents per kWh to 9.97 cents per kWh on June 1. In this case, the new rate would add up to $107.00 in electricity supply charges on an average August electric bill. That’s a monthly electric bill of about $210.00.<\/p>\n\n\n\n

Luckily, you do have alternatives to the Price to Compare. For example, the Public Power<\/a> Electric 12 Month Fixed Rate With MRC<\/strong> plan charges 7.99 cents per kWh. This rate equals a monthly supply charge of about $85 ($22 less than PTC rates).<\/p>\n\n\n\n

Alternatively, you could shop for the APG&E<\/a><\/strong> True Simple 12<\/strong> plan. This brings power to your home for 9.23 cents per kWh, or an average monthly supply charge of about $99. This is not only $8 less than PTC rates, but you can find more values by taking advantage of the dining and shopping discounts from the APG&E <\/strong>rewards program.<\/p>\n\n\n\n

Offset Higher Distribution Rate<\/h3>\n\n\n\n

It may take another year for PUCO to take up the AEP Ohio filing. In the mean time, a good way to keep your electric bills lower is to use less energy. Of course, the best thing to do is to shop for better rates at https:\/\/www.ohenergyratings.com<\/a>. We’ll also keep you up to date on news and tips that could affect your bills.<\/p>\n","protected":false},"excerpt":{"rendered":"

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