Get Ready, Ohio: AEP Ohio Electricity Rates Set to Rise in June 2025

AEP Ohio customers are facing an upcoming increase in their electricity bills, with new rates taking effect on June 1, 2025. This adjustment, approved by the Public Utilities Commission of Ohio (PUCO), will impact the “Price to Compare” (PTC) – the benchmark rate for the generation portion of your bill if you don’t choose an alternative supplier. Understanding the reasons behind this change, how much it will affect your wallet, and the programs available to help those facing hardship is crucial for managing your household budget.

What Does This Mean for Your Bill?

For AEP Ohio residential customers who receive their power supply through the company’s Standard Service Offer (SSO), the Price to Compare (PTC) is expected to increase significantly. The PTC, which was around $0.0732/kWh for April 1 to May 31, 2025, will rise to approximately $0.0997/kWh starting June 1, 2025, and running through May 31, 2026.

This increase translates to an estimated $27 per month increase for an average residential customer using around 1,000 kilowatt-hours (kWh) of electricity. It’s important to remember that this is an average; your actual bill increase will depend on your individual energy consumption. Customers who use more electricity will likely see a larger increase in their total monthly charges.

Why Are Rates Climbing? The Capacity Cost Crunch

The primary driver behind AEP Ohio’s rate increase is a significant surge in capacity costs. Capacity refers to the cost associated with ensuring there’s enough power generation available to meet the region’s peak electricity demands, especially during extreme weather. In June 2024, PJM Interconnection, the organization that manages the electric grid for Ohio and 12 other states, conducted a capacity auction that saw prices increase by a staggering 833% compared to the previous year.

This dramatic jump in capacity charges is directly passed through to consumers, as it’s a necessary component of maintaining grid reliability. While AEP Ohio delivers electricity and maintains the lines, they do not generate the power themselves. The rising cost of securing this generation capacity in the wholesale market is the leading cause of the upcoming increase. Additionally, broader market pressures, including the supply and demand for power (driven by factors like data center growth and increased use of electronics) and the retirement of some aging power plants, contribute to higher generation costs.

Facing Hardship? AEP Ohio Offers Assistance Programs

AEP Ohio understands that electricity bill increases can create financial strain, and they, along with state and federal partners, offer several programs to help customers in need. If you are struggling to pay your bill, don’t hesitate to explore these options:

• Percentage of Income Payment Plan Plus (PIPP Plus): This state program allows eligible low-income households to pay a reduced percentage of their gross monthly income towards their energy bills. For every on-time payment, a portion of their outstanding balance is reduced, helping them gain control of their debt.
• Home Energy Assistance Program (HEAP): A federally funded program that provides a one-time grant to eligible low-income households to help with their energy bills. Applications are typically open from July through May. The Winter Crisis Program and Summer Crisis Program are components of HEAP that provide emergency assistance during peak heating and cooling seasons.
• Neighbor to Neighbor Program: Administered by Dollar Energy Fund, this program provides a one-time grant to eligible AEP Ohio customers experiencing financial hardship. Eligibility often requires a good-faith payment history and an outstanding balance.
• High Efficiency for Low-income Program (HELP): This program provides free in-home energy assessments and energy-efficient upgrades (like insulation, appliance replacement, and smart thermostats) to eligible low-income customers, helping to reduce long-term energy consumption and bills.
• Payment Arrangements and Extensions: AEP Ohio can work with customers to set up flexible payment plans to manage past-due balances or offer short-term extensions if you need a few extra days to pay your bill in full.
• Medical Needs Assistance: If a serious medical condition in your household requires continuous electricity, AEP Ohio may offer special consideration, such as deferred payment options, with proper medical documentation.

To learn more about these programs and determine your eligibility, you can visit the AEP Ohio website’s payment assistance section, contact their customer service line at 1-800-672-2231, or dial 211 to connect with local assistance resources. Acting quickly if you anticipate difficulty paying your bill is key to exploring your options and preventing service disruptions.

Ways to Compare Rates and Secure a Fixed-Rate Plan

Ohio consumers have several avenues available to explore competitive electricity rates and potentially lock in a fixed-rate plan to avoid AEP’s Price to Compare fluctuations:

1. Explore the Apples to Apples Website: The Apples to Apples Ohio website operated by the Ohio Public Utilities Commission offers a comprehensive marketplace with potentially hundreds of competing energy offers. While this provides a wide array of choices, navigating through numerous plans and determining the best supplier for your specific needs can sometimes feel overwhelming.
2. Simplify Your Search with ElectricityRates.com: ElectricityRates.com offers a secure, fast, and simple process designed to streamline your rate comparison experience. We present you with only the best rates from top-rated and trusted electricity suppliers serving Ohio, saving you time and effort in your search for the ideal plan.
3. Shop Directly Through Supplier Websites: You also have the option to visit individual energy suppliers’ websites. However, keep in mind that you will only see the plans offered by that specific supplier, requiring you to visit multiple websites to get a broader view of the competitive landscape.

The upcoming AEP Ohio rate increase, driven primarily by soaring capacity costs from the PJM auction, will undoubtedly impact household budgets across the state. While the estimated $27 monthly increase for average users is significant, understanding the underlying reasons and recognizing the proactive steps you can take is key. By exploring assistance programs like PIPP Plus and Neighbor to Neighbor, utilizing energy-saving strategies, and considering alternative electricity suppliers through Energy Choice, you can proactively manage your energy costs. Stay informed, take action, and utilize the available resources to navigate these changes effectively and maintain control over your electricity expenses.