AEP customers notified about higher rate

AEP Ohio customers, including those in the southern Columbiana County service area, will see a mix of increases and decreases in their electric bills through this summer, the company announced.
The utility said in a customer notification that changes are coming to the generation service charge for Standard Service Offer (SSO) residential customers and to the transmission and distribution service charges for all residential customers.
Beginning in June, the generation service charge for the average residential customer who buys electricity from AEP and uses 1,000 kilowatt-hours of electricity per month is expected to increase by about $27.
According to AEP Ohio, this charge is a direct pass-through from generation suppliers, and the company does not profit from it. The increase will only affect customers who receive their electricity generation supply through AEP Ohio’s Standard Service Offer, not those who have chosen a competitive supplier or are part of a governmental aggregation.
AEP Ohio attributed the increase to a recent auction conducted by PJM, the regional transmission organization that oversees the electric grid in 13 states, including Ohio. The company said the auction saw significant increases in the price of electricity generation capacity due to market pressures, including limited power generation supply and increasing demand.
Conversely, all residential customers will see decreases in their transmission and distribution service charges. Starting this month, transmission charges will decrease by approximately $9 for the average residential customer using 1,000 kilowatt-hours per month. Other charges related to delivering power are also decreasing by about $5 per month. These charges cover the cost of maintaining and investing in the infrastructure that delivers electricity.
AEP Ohio encourages customers who do not receive their generation supply through the SSO to contact their supplier for information about potential changes to their supply charges. Customers in Ohio have the option to choose their electricity generation supplier and can compare rates at energychoice.ohio.gov.