Supplier Spotlight: American Electric Power

American Electric Power Company, Inc. (AEP) is a public utility holding company that engages in the generation, transmission and distribution of electricity for sale to retail and wholesale customers.  AEP is one of the 80 companies in the “Electric Utilities” industry. Compared to its competitors, AEP has lower earnings, but higher gross revenue. Their service area consists of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.  Most of AEP’s shares are owned by institutional investors, which indicates that it is poised for long-term growth. In a Week Herald article AEP is said to beat its competitors on 8 of 15 factors including profitability, institutional ownership, dividends, valuation, earnings, analyst recommendations and risk.

AEP is just one of the suppliers we currently work with to help our customers stabilize their electricity and natural gas costs. Third party suppliers allow customers in deregulated states to compare pricing from multiple sources. Looking at your utility bill you can often find a Price To Compare. This price will tell customers how much the utility is charging for energy generation and if you find a supplier with a lower cost then you will save money. Everyone enjoys saving money, but the ability to stabilize energy costs is often very advantageous for commercial energy customers as well. Signing a low rate fixed price contract can give businesses the best of both worlds.

Working with Better Cost Control will allow business customers to shop the market without having to do any of the leg work. All they need to do is send us their most current utility bill and we will get pricing from a number of suppliers to see if they could be saving money or if there would be a better rate to lock in now to avoid market volatility later.  We offer complimentary no obligation quotes, so feel free to reach out to us to see how we could help your company. Click here to find out more.

 

 

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.