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05/30/2025

AEP Ohio Seeks Another Electric Distribution Base Rate Increase

If approved, the company will use the funds to cover essential grid improvements

American Electric Power Ohio (AEP Ohio) filed a request today with the Public Utilities Commission of Ohio (PUCO) to once again adjust its electric distribution base rates. Distribution base rates reflect the cost of delivering electricity to customers. These costs pay for the distribution system — poles, wires, substations and other equipment — along with the costs required to keep its system running.

For customers of AEP Ohio, this means that, should the commission approve the rate increase request, base rates will increase by approximately 2.14 percent (or $3.95 per month) for an average residential customer using 1,000 kWh per month. The exact amount customers’ bills may change will depend on the outcome of the PUCO case. All of AEP Ohio's rates must be approved by the PUCO before they are charged to customers' bills.

According to the company, the rate increase allows them to pass along infrastructure improvements directly to the consumers in order to keep the power flowing and improve its service to homes and businesses across its large 61-county footprint.

AEP Ohio says its base rates allow the company to:

  • Replace equipment, such as poles, wires and transformers
  • Add protections to electrical equipment to prevent and reduce outages, and 
  • Respond to growth, severe weather and other factors that put demands on the local electric grid

These are all infrastructure improvements most companies maintain and implement on as needed basis.

According to a company statement, it understands that "a rate increase — no matter the amount — is never welcome news." The company also alleges it recognizes that rising inflation and increased costs for many household essentials have put a strain on some customers, which is why it has several resources available — from payment arrangements and extensions to tools to manage energy usage to guidance about government programs — to assist with bills like continue to increase.

The company also stated that the commission will rigorously review AEP Ohio’s requested increase and seek public input from a variety of customer groups to ensure that all costs the electric giant incurs for customers are reasonable and necessary. These cases often take over a year to finalize from the date AEP Ohio files. 

In November 2019, the PUCO denied AEP Ohio's request to impose a non-bypassable charge on all customers to recover the costs of two proposed solar projects. The commission determined that AEP Ohio had not adequately demonstrated the need for the additional generation. 

The Ohio Consumers' Counsel (OCC) has been critical of some PUCO decisions regarding AEP Ohio rates, arguing that they are not always in the best interest of residential consumers. 

To learn more about this latest request to increase users' rates, please visit AEPOhio.com/BaseCase.  

In the Q1 2025, American Electric Power (AEP) reported earnings per share (EPS) of $1.54, exceeding the $1.41 forecast. The stock price increased by 0.35 percent following the earnings release, closing at $107.82.

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