Rate Changes in AEP Ohio Territory

Dear Residents

We wanted to inform you about new and upcoming changes in the anticipated electricity rates for those residents in the AEP Ohio territory.

Effective Monday, April 1, 2024, AEP Ohio raised the largest component of the transmission portion of their residential rate. As a result, residential rates will increase by about $10 per month for the average consumer (1,000 kWh/month).

Federal regulations set the rules for how much AEP can charge for the transmission of electricity to customers. In a mid-March ruling, the Public Utilities Commission of Ohio (PUCO) approved the new calculations.

This news follows the expectation that the generation portion of AEP Ohio’s rates will decrease by 20%—30% following the spring auction process. This decrease will take effect in June and should provide some relief to residential summer bills despite the transmission rate increase announcement. These rate adjustments may also impact your common area usage costs and any commercial customers at your property. As a reminder, NEP is contractually obligated to calculate bills at rates that track those of the local utility.

We understand that accurate, timely information is crucial to managing your business effectively. That's why we wanted to ensure you are fully aware of these pending changes and can plan accordingly.

If you have questions, you are always welcome to Contact Resident Support.

Sources
“AEP Ohio residential customers hit with $10-a-month increase in electric bills.” Columbus Dispatch; Mar 27, 2024
“AEP Files April 1, 2024 Update to Basic Transmission Cost Rider” Ohio Energy Report: Jan 2024, Brakey Energy