For AEP Ohio Customers Only
Why are bills increasing?
There are many factors that can impact your bill. This increase is largely due to the results of recent auctions for the generation supply portion of your electric bill. AEP Ohio is a wires company, which means we deliver electricity to homes and businesses. In Ohio, customers are free to choose who provides the generation supply portion of their electric service. If you choose to receive your generation supply from AEP Ohio, a competitive market auction is used to procure generation supply. Energy supply companies submit bids in the auction for the ability to supply energy to AEP Ohio customers for a specified period of time at the lowest price possible. This generation supply component is called the Standard Service Offer (SSO) and these procurement costs are external to AEP Ohio and beyond its control. Customers may also choose to receive their generation supply from a Competitive Retail Electric Service (CRES) provider.
During the most recent auctions, held in November 2022 and March 2023, the cost of procuring generation supply increased significantly and AEP Ohio is required to pass these costs along to customers. Global demand, global supply chain issues, economic uncertainty, and the continued war in Ukraine have had an impact on the cost to produce electricity. The results of these two auctions are blended to create the new rate. Due to these rising costs, a typical residential customer using 1,000 kilowatt-hours of energy each month can expect their total bill to increase about 28% from today’s typical bill of about $155 to about $198. These rates will be in effect until May 2024.
The final prices for generation supply procurement set by the competitive auction are market-based and are reviewed and approved by the Public Utilities Commission of Ohio. It’s important to note that because we are a wires-only company we only pass through the exact cost of generation supply to customers, dollar-for-dollar.
Please Check this Website Lenz Energy to see if your bill can be reduced!