Gahanna, Ohio (January 6, 2025) — AEP Ohio, a subsidiary of American Electric Power (Nasdaq: AEP), has filed a new stipulation with the Public Utilities Commission of Ohio (PUCO), seeking approval for an ambitious plan to improve the reliability and resiliency of its power grid. The initiative aims to prevent and shorten power outages across AEP Ohio’s service area, which spans 61 counties in the state.
The proposed plan includes the installation or upgrade of Distribution Automation Circuit Reconfiguration (DACR) technologies on up to 412 circuits. These upgrades are part of AEP Ohio’s ongoing commitment to reducing power interruptions and enhancing service for its customers. The company has already implemented DACR technology on several circuits, which has successfully prevented 41 million minutes of customer interruptions to date.
DACR technology works by automatically detecting outages and rerouting power within minutes, minimizing the number of customers affected. Additionally, the technology helps crews quickly identify the source of the problem, reducing the time needed to diagnose issues and restoring power more efficiently.
The stipulation filed today has been agreed upon by AEP Ohio, the PUCO’s staff, the Ohio Energy Group (OEG), the Ohio Energy Leadership Committee (OELC), and the Ohio Manufacturers Association Energy Group (OMEAG).
Marc Reitter, president and chief operating officer of AEP Ohio, emphasized the company’s dedication to enhancing grid reliability. “AEP Ohio is continually focused on making our electric grid more resilient and reliable throughout our service territory for each and every customer,” Reitter said. “Our efforts include traditional solutions like tree trimming, as well as advanced technologies that help automate the power grid. We’ve seen improved service across our territory due to these automation technologies, and we want to build on that success. This proposal would more than double the number of automation technology installations across our system.”
The proposal is part of AEP Ohio’s gridSMART program, which utilizes advanced technologies to reduce both the frequency and duration of power outages. The gridSMART initiative has already included the successful installation of DACR technology under previous phases, including the gridSMART Pilot Program, which saw DACR on 70 circuits, and gridSMART Phase 2, which added DACR technology to 255 circuits. These efforts have contributed to a more reliable electric grid for customers in AEP Ohio’s service area.
Under the current proposal, AEP Ohio plans to install DACR technology on 333 circuits that do not currently have any automation technology, while also enhancing the DACR systems on 79 circuits that are partially equipped. The installations are expected to take place over the next six years, pending PUCO approval.
The total investment in this expansion is estimated at approximately $350 million. For the average residential customer using 1,000 kilowatt-hours per month, this initiative is expected to increase their monthly bill by just 22 cents.
If approved, the plan will further solidify AEP Ohio’s commitment to providing its customers with reliable and efficient power services, reducing the impact of outages, and strengthening the overall resilience of the state’s power grid.
