COLUMBUS, OHIO (April 3, 2024) – In a significant development for Ohio’s energy landscape, the Public Utilities Commission of Ohio (PUCO) has granted approval for AEP Ohio to initiate a four-year electric security plan (ESP), set to commence on June 1, 2024.
PUCO Chair Jenifer French heralded the settlement agreement’s ratification, emphasizing its broad support from various consumer, business, and environmental organizations. “The settlement we approve today, supported by a wide range of consumer, business, and environmental organizations, will serve to improve the service quality and reliability of the grid across AEP Ohio’s service territory and will reduce costs for AEP SSO customers,” said French. “Incentivizing off-peak electric vehicle charging, smart thermostat programs, and customer and community assistance programs are exciting opportunities for Ohio consumers.”
Under the ESP framework, AEP Ohio will continue procuring electricity for its customers through a competitive bidding process. Residential consumers enrolled in AEP Ohio’s standard service offer (SSO) will benefit from reduced electricity prices, with a typical monthly bill experiencing a drop of approximately $30, attributed to the downward trend in energy costs.
In a bid to promote sustainability and energy efficiency, AEP Ohio will introduce new rates to encourage off-peak charging for electric vehicles and roll out a smart thermostat demand response and incentive program.
Furthermore, AEP Ohio will administer a low-income energy efficiency initiative aimed at aiding eligible customers with home weatherization, lighting, water heating, heat pumps, and refrigeration needs. The utility will also sustain its Neighbor to Neighbor bill payment assistance program.
Throughout the ESP’s duration, AEP Ohio is authorized to pursue cost recovery for incremental capital investments in its distribution system. The annual amount eligible for rate inclusion will be subject to a cap, with any increases in distribution-related components projected to rise by approximately $1.50 per year over the four-year term.
The settlement agreement, endorsed by a consortium including AEP Ohio, PUCO staff, and numerous stakeholder organizations, was filed on Sept. 6, 2023. Interested parties can access a copy of today’s opinion and order on the PUCO website at www.PUCO.ohio.gov by navigating to the Docketing Information System (DIS) and searching for case 23-23-EL-SSO.
