GAHANNA — AEP Ohio, an American Electric Power (Nasdaq: AEP) company, filed with the Public Utilities Commission of Ohio (PUCO) a settlement agreement addressing the company’s Electric Security Plan (ESP) filed in January 2023. The agreement paves the way for AEP Ohio to continue making reliability-focused improvements to the electric grid, support economic development, and create new programs that allow customers to manage their energy use and save money. The ESP also includes enhancements to its Standard Service Offer (SSO) auction process designed to produce more stable SSO generation rates.
“When we submitted our Electric Security Plan, our focus was on the investments we needed to make to improve the reliability and resiliency of the electric grid. The agreement we have reached will allow us to accomplish needed work that will allow us to better meet our customers’ expectations,” said Marc Reitter, AEP Ohio president and chief operating officer. “We recognize the financial challenges many of our customers are experiencing due to rising inflation and we worked hard to limit rate impacts in this agreement. Under the ESP V term, which will run from June 2024 through May 2028, a typical residential customer using 1,000 kWh would see an average annual increase of less than 1% or $1.50 per month.”
“Customers expect reliable electric service, and our employees work every day to ensure our customers have power when they need it,” Reitter added. “The AEP Ohio team has worked with PUCO staff and numerous other signatory parties including Citizens Utility Board which represents residential and small commercial customers, parties representing low-income customers, large energy users, commercial energy users and environmental advocacy groups to ensure that the ESP balances affordability with providing the resources needed to keep the power flowing.”
The agreement will allow AEP Ohio to invest more than $1.5 billion in critical distribution system investments to address aging infrastructure and serve new customers in its growing service territory. These investments will continue the company’s efforts to improve the reliability and resiliency of the distribution grid over the ESP term.
In addition to reliability improvements, the agreement also creates new programs that enable customers to reduce their electric bills. A new program, the High Efficiency for Low-Income Program (HELP) will provide $10 million annually to support low-income customers making their homes more energy efficient through upgraded lighting, heating equipment and refrigerators.
Additionally, customers will be eligible to receive rebates if they participate in a smart thermostat demand response program.
Electric vehicle charging is also made more efficient by the settlement, offering EV owners with charging equipment at home the chance to save up to 70% off their distribution charges by charging their vehicles between midnight and 4 a.m.
The agreement also establishes an economic development program to attract new investment and job growth in economically distressed communities and rural areas throughout AEP Ohio’s service territory. AEP Ohio will make $900,000 annually in grants available, with 50% of the funding provided by AEP shareholders, and will work with state, regional, and local development partners and private sector leaders to promote investment and bring new jobs to these communities.
The stipulation is subject to review and approval by the PUCO.
