AEP electric rates to go up about $10 per month

The Public Utilities Commission of Ohio authorized AEP-Ohio to increase customer rates starting April 1.

In a March 20 decision, the commission approved the electric company’s update to its basic transmission cost rider, which called for an average bill increase of 6.35%, approximately $10 per month.

According to an email sent to customers on Thursday, if a customer receives electricity through AEP Ohio’s Standard Service Offer (SSO), the SSO rate will decrease approximately 30% (or $35) per month beginning June 1.

Under its order, the PUCO and AEP agreed to transmission charge increases to residential consumers (via the BTCR rider) that amount to about $10 a month more beginning in April, according to the Ohio Consumers’ Counsel.

At the same time, AEP is reducing transmission charges to big businesses and forging ahead with an expanded pilot program that allows certain big businesses to opt out of paying for the transmission charges under the BTCR rider, according the Office of Ohio Consumers’ Counsel.

“Regrettably, because of the PUCO’s order, AEP’s residential consumers will pay higher electric bills,” Office of Ohio Consumers’ Counsel Director Maureen Willis said. “Ohio utilities’ transmission spending that receives no regulatory review for need or prudence continues to be a problem for Ohio utility consumers that foot the bill. While we await FERC’s ruling, the PUCO should be actively engaged in protecting consumers.”

PUCO is considering another AEP Ohio request. The company filed an Electric Security Plan stipulation last year. If the settlement is approved, customers will see an average monthly increase of less than 1% — about $1.50 — on their bills starting in late 2024.

According to OCC, the BTCR rate increase will total about $154 million.

“Despite the Ohio regulatory gap where consumers are left unprotected, AEP charges forward with an enormous 32% increase to residential consumers paying Rider BTCR,” OCC said in its complaint to PUCO. “A 1,000 kwh per month residential consumer is currently paying $33.16 per month for Rider BTCR. That will jump to almost $44 per month under the proposed Rider BTCR.”

While increasing charges to residential customers, AEP plans to reduce charges to non-residential — commercial and business — consumers. “For example, under AEP’s proposal, charges to non-residential consumers (commercial and business consumers) that pay Rider BTCR are being decreased by more than $114 million,” OCC said in the complaint urging PUCO to reject the changes. “The shifting of cost responsibility within Rider BTCR causes residential consumers’ share of the rider costs to balloon from 43% to 53%. The large increase in BTCR charges to residential consumers coming from a reallocation of Rider BTCR is unfair, unjust and unreasonable to residential consumers who are already being squeezed by other utility rate increases.”

OCC filed a complaint with the Federal Energy Regulatory Commission regarding the case. The group asked FERC to step in to protect Ohio consumers by regulating Ohio supplemental transmission projects that no regulator is now reviewing.

While the group awaits the federal commission’s decision, OCC will evaluate further steps to protect consumers from the unfair BCTR transmission charges that the PUCO is passing through to consumers, a press release said.