AEP RATE INCREASE

By Josh Filler, Vice President & Chief Operating Officer - Electric Operations

AEP Ohio has recently announced two rate increases. The first concerns their standard service offer, which is their standard generation rate. The second is a distribution rate increase submitted to the PUCO for approval. We want our members to understand that rate increases from AEP do not affect their bills.

Electric Members Will Not Be Affected by AEP Ohio's Bill Increase

AEP Ohio customers opting for their standard service offer (SSO) are seeing increased generation costs beginning this month. This is because AEP and other investor-owned utilities purchase power through an auction managed by PJM, the regional transmission organization for Ohio and surrounding states. The price of power generation at the most recent auction was significantly higher due to a limited supply and increasing demand. AEP customers are subject to this market price volatility, whether through their standard service offering (SSO) or AEP’s Competitive Retail Electric Suppliers. AEP customers will see bills increase by $27 a month on average. You will not see this increase on your electric bill!

AEP Ohio also announced a 2.14% increase on its residential rate that will go before the PUCO. If approved, AEP customers’ bills will see roughly $4.75 added to their monthly electric bills.

Will Cooperative Members See the Same Increases?

No. AEP’s rate increase does not impact members of The Energy Cooperative. We are owned and operated by our members, and our board of directors determines your rates. As a not-for-profit cooperative, we provide electric generation to our members at cost. Generation costs are passed through to our members based on their respective rate schedule.

We have not had a distribution rate increase on our residential rates since August of 2024. We did roll out new rates effective April 1, 2025.

Still, those were just adjustments to the pass-through generation and transmission portion of your bill that moved the ongoing power cost adjustment (PCA) into the generation and transmission base rate. It was effectively a net-zero rate adjustment.

Where Does The Energy Cooperative Buy My Electricity?

Your electric generation comes from Buckeye Power, a cooperative owned and operated by Ohio’s Electric Cooperatives. Buckeye Power generates most of its electricity at Cardinal Plant in Brilliant, Ohio. They also own and operate two natural gas power plants, have solar arrays throughout the state, receive methane-produced power from the Hancock County Landfill and the Suburban Regional Landfill (in Perry County), get hydropower from upstate New York, and purchase biogas from Ohio livestock farms. This structure allows Ohio’s Electric Cooperatives to primarily avoid volatile market auction pricing and maintain stable rates for our members. Buckeye Power generates more than enough electricity for the 1 million Ohioans who rely on it daily!

How Do Your Rates Compare with AEP?

If you have an average use of 1,200 kWh’s per month on The Energy Cooperative's residential rate, the total cost would be $206.02, which equals out to $0.1717 per kWh. Taking the same example of 1,200 kWh's, AEP’s residential rate with their SSO would be $238.41, which is $0.1987 per kWh. In the same scenario, choosing a Competitive Retail Electric Supplier like AEP's Open Choice, the total cost would be $218.30, which is $0.1819 per kWh.

You can always find our rates on the back of your monthly bill and by visiting our website at myenergycoop.com/rates.

The Energy Cooperative’s rates remain competitive. We strive to be efficient with our resources and provide reliable service at an affordable price.

Thank you for being a member of The Energy Cooperative! Do not hesitate to contact us if you have any questions or concerns. Our member service representatives can speak with you from 7:30 a.m. to 4:30 p.m., Monday through Friday. Call us at 740-344-2102.