AEP Ohio Increased Rates Approved…But Good News for Businesses

American Electric Power (AEP) new rates have been approved at a 6.3 percent increase.  To put that into perspective, the average household will be paying approximately $8 more every month under the AEP electric rates.

AEP wasn’t the only company to increase their rates.  The Public Utility Commission of Ohio (PUCO) has devised a plan in attempt to balance the field of sharply divided parties.

The 6.3 percent fell within AEP’s estimated 5 to 7 percent increase that they had previously projected.  The new electric rates that take effect next month are part of a complicated price planning strategy as AEP adapts to a competitive market.  The president of AEP Ohio, Pablo Vegas, stated that the company has been working very hard to minimize the impact on customers electric bills as they continue to transition to this new market model.

It is not just households that are seeing a rate increase.  Businesses with AEP as their electric provider will be impacting as well.  However, businesses will be happy to hear drastic improvements from last years winter rates.

Small business in the region will only face a 1 to 4 percent increase from the current rates.  Last winter, some experienced a 40 percent increase from their previous period electric rates.  The change was so drastic that PUCO had to dispose of those winter rates and revisit the process.

This year the rate change will be substantially lower; small businesses in the General Service 2 rate class will face a 1 to 1.4 percent increase, medium-size businesses in the General Service 3 rate class will see a 3.6 to 3.7 percent increase, and those large factories in the General Service 4 rate class 1.9 to 3.6 percent increases.

As of this writing, prices from a variety of Better Cost Control competitive suppliers in Ohio are lower than the new rates.  We recommend using an electricity broker to obtain the best prices and contract terms.

To learn more about a fixed price electricity contract to protect your company from price fluctuations,  contact us via email or call 800-454-0027 x150.