If you live in AEP Ohio’s service area and don’t select a retail energy supplier, you’re on the basic generation rate called the Standard Service Offer, or SSO. AEP Ohio’s SSO rate is currently higher than competitive rates on the market, and it may be possible to save money by switching to a local supplier. Enter your zip code to compare rates and find a plan that works for you.
The increase is due to a series of auctions that aep ohio holds for the generation supply portion of a customer’s electricity bill. AEP’s SSO rate is based on the per-kilowatt-hour price that was procured in these auctions, which are run in accordance with Ohio’s deregulated energy market.
A typical residential customer using 1,000 kilowatt hours of power each month would see their monthly AEP bill jump 28% from $155 to $198 under the proposal that is set to go into effect this summer. AEP says it’s because the cost of procurement increased significantly during the auctions, which were impacted by factors like global demand and supply chain issues, economic uncertainty, and war in Ukraine.
The Public Utilities Commission of Ohio is considering the rate increase, which would apply to AEP’s Columbus Southern and Ohio Power service zones. The company is asking PUCO for permission to increase rates over the next six years, saying it will allow them to replace 350 transformers, improve hundreds of circuits that led to last year’s power outages and expand lines and substations. AEP says the money is also needed to maintain its system in a state where the economy is growing faster than its infrastructure.
Despite the spike in SSO rates, many AEP customers will still save money by choosing to shop for competitive Ohio electric rate plans. Customers should start by reviewing their bill and determining their service zone, which can be found on the Current AEP Charges section of their statement under “Service Delivery Identifier”. If your Service Delivery Identifier begins with 0004, you’re in the Columbus Southern Power service zone, while those whose identifier starts with 0014 are in the Ohio Power zone.
AEP bills are comprised of two parts: a distribution charge and an energy supply charge. AEP distributes power through its network and maintains the power lines, so it’s responsible for outages and other issues relating to the utility’s distribution. The customer selects a provider to handle the supply side of the bill, which can be done through an online marketplace or by calling AEP directly.
If you don’t choose a supplier, you’ll be placed on the default rate known as the Standard Service Offer, or SSO, which is the basic generation rate that AEP will use to generate electricity for its customers. PUCO requires that AEP list this rate on its electric bills as a “price to compare,” so consumers can see the difference in costs when they select an alternative. If you’re interested in shopping for a low rate, you can visit our site to find a variety of offers from competitive suppliers.