PUCO authorizes AEP Ohio electric security plan
COLUMBUS – The Public Utilities Commission of Ohio approved a settlement agreement authorizing AEP Ohio to implement a four-year electric security plan (ESP), beginning June 1, the PUCO announced.
“The settlement we approve...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,” stated PUCO chairwoman Jenifer French.
“Incentivizing off-peak electric vehicle charging, smart thermostat programs, and customer and community assistance programs are exciting opportunities for Ohio consumers,” she said in a news release.
During the term of the ESP, AEP Ohio will continue to source electricity for its customers through a competitive bidding process.
A residential customer using 1,000 kwh enrolled in AEP Ohio’s standard service offer (SSO), sometimes referred to as the default generation rate, will experience a total monthly bill reduction of approximately $30 due to falling prices for electricity.
AEP Ohio will begin offering new rates to incentivize off-peak charging for electric vehicles, as well as a new smart thermostat demand response and incentive program.
AEP Ohio will administer a low-income energy efficiency program designed to assist eligible customers with home weatherization, lighting, water heating, heat pumps and refrigeration.
AEP Ohio will also continue to fund its Neighbor to Neighbor bill payment assistance program.
AEP Ohio is authorized to seek cost recovery for incremental capital investments to its distribution system each year during the term of the ESP.
The amount eligible to be included in rates is capped each year and subject to future PUCO approval and audit.
Distribution-related components will increase approximately $1.50 per year during the plan’s four-year term.
The settlement agreement approved April 3 was filed on Sept. 6, 2023. It is signed by AEP Ohio, PUCO staff, Ohio Energy Group, Ohio
Partners for Affordable Energy, Enel North America, Environmental Law and Policy Center, Walmart, Ohio Energy Leadership Council, Interstate Gas Supply, Ohio Manufacturers’ Association Energy Group, Retail Energy Supply Association, Citizens’ Utility Board of Ohio, Ohio Environmental Council, Direct Energy, Ohio Hospital Association, Kroger and Armada Power.