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State utilities commission approves AEP Ohio rate changes

Electric cat
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Wikimedia Commons

The Public Utilities Commission of Ohio decided Wednesday that AEP Ohio can adjust its electric rates.

Ohio Consumers' Counsel Maureen Willis said Thursday it will mean higher rates for AEP Ohio customers.

The state body that oversees utilities is allowing AEP Ohio to boost its base distribution revenues by $11 million, which is less than the $97 million that the company originally requested.

AEP Ohio will also set a minimum monthly customer charge for new data center customers. That comes on top of an meant to make data centers pay for the electric costs they impose on the grid.

Community , submitting 2,500 petition signatures to the PUCO earlier this year. and Columbus City Council .

AEP Ohio has said that the rate change will decrease bills by more than $1 a month for average customers.

The Ohio Consumer's Council reports that the utility provider to lower those bills.

But groups have said rates will actually rise.

In a statement, the Ohio Environmental Council said that if AEP Ohio spend the full amount approved, the average residential customer rate will increase by as much as $4.38 a month by the end of the year and an average of $10.28 a month by 2028.

Columbus City Councilmember Christopher Wyche said in a statement that he was disappointed but not surprised by the PUCO's decision.

鈥淲hile AEP Ohio is going to claim this rate change could result in a bill decrease for customers, that reduction is temporary. Number games may work for talking points, but they won鈥檛 do much for consumers who are balancing their budgets at the kitchen table,鈥 said Wyche, who chairs City Council's Public Utilities and Sustainability Committee.

In a statement, Willis, the state consumers' counsel, said: 鈥淔or utility consumers the fundamental question is always the same: is my utility bill going up?  Consumers deserve a direct answer to that question. The PUCO鈥檚 package review of a settlement should address that real impact on families who will see higher monthly bills. The PUCO must never lose sight of the fact that every approved dollar comes directly from consumers鈥 pockets.鈥

The PUCO said that AEP Ohio will return around $105 million to customers over 18 months because of the Tax Cuts and Jobs Act. PUCO said that will result in a $58.7 million revenue decrease for AEP Ohio.

When AEP initially sought rate increases, the company said in a statement that those would cover the costs of equipment including power poles, lines and transformers, and pay the salaries of the line workers.

Allie Vugrincic has been a radio reporter at WOSU 89.7 NPR News since March 2023 and has been the station's mid-day radio host since January 2025.