State utilities commission approves AEP Ohio rate changes

The Public Utilities Commission of Ohio (PUCO) announced its decision to allow AEP Ohio to adjust its electric rates, approving an $11 million increase in base distribution revenues. This figure is significantly less than the $97 million AEP Ohio originally requested. The ruling means higher monthly bills for AEP Ohio customers, according to Ohio Consumers' Counsel Maureen Willis. A key aspect of the approved changes includes the implementation of a minimum monthly customer charge specifically for new data center customers. This new charge supplements an existing data center tariff designed to ensure data centers contribute to the electric costs they impose on the grid. The decision was met with disappointment from various groups, including community activists who had collected 2,500 petition signatures opposing the rate hikes, as well as Columbus City Schools and Columbus City Council. Councilmember Christopher Wyche, chair of the City Council's Public Utilities and Sustainability Committee, expressed his disappointment, criticizing AEP Ohio's claims that the rate change would temporarily decrease bills, arguing that consumers would ultimately face higher costs. The Ohio Environmental Council also predicted an increase of up to $4.38 per month for average residential customers by year-end and $10.28 by 2028. Despite the opposition, AEP Ohio stated the initial rate changes were necessary to cover equipment costs, including power poles, lines, and transformers, and employee salaries. PUCO indicated that AEP Ohio would return approximately $105 million to customers over 18 months due to the Tax Cuts and Jobs Act, which would result in a $58.7 million revenue decrease for the utility.