AEP Ohio to Continue Blocking Retail Customers from Lower Market Prices

Just yesterday, the Public Utilities Commission of Ohio, aka PUCO, made the decision to allow AEP Ohio to continue to block its retail customers from receiving lower electric rates available from the suppliers in the competitive market.

After yesterday’s ruling, AEP Ohio remains the only utility provider in the state that can effectively restrict any of its customers from obtaining lower market based capacity prices.  These unprecedentedly low rates advocate a competitive market, which helps commercial customers save money.  But for AEP Ohio clients, they will have no other options than the set prices of their provider, which are substantially higher than what the current market is providing.  To put things in perspective, AEP Ohio will be able to charge a rate of Capacity Charges that is as much as seven times the current market-based rate.

In Ohio, there has been a trend of reducing utility rates due to the competitive environment that has developed between providers.  Last period, providers such as FirstEnergy Ohio and Duke Energy Ohio reduced their prices 17% for its utility customers.  This ruling that PUCO has made enables AEP Ohio to defy that competition and monopolize their rates and customers.

AEP is one of the nation’s largest electric utilities and owns the largest electricity transmission system.  President and Chief Operating Officer, Pablo Vegas, stated that the PUCO decision was an appropriate and necessary one.  He argues that AEP Ohio is ready to embrace the competitive market, however, must have permission to temporarily charge higher rates in order to accommodate for the considerable investment they have to make in order to transition their plants away from coal-burning generators.

A number of Better Cost Control’s suppliers in the state of Ohio offer substantially lower rates than those of AEP Ohio.  Having a professional energy advocate can protect you from a volatile market and save you money.  To learn more about how please contact us via email or call 800-454-0027 x150.