AEP Ohio, an American Electric Power company, has received approval of its Electric Security Plan (ESP) from the Public Utilities Commission of Ohio (PUCO).
The ESP demonstrated AEP Ohio’s assurance to continue making reliability-focused improvements to the electric grid, support economic development, and create new programs to allow customers to manage their energy use and save money. The order also made improvements to the Standard Service Offer (SSO) auction process to produce more stable generation rates for customers neither selecting an energy supplier nor participating in a governmental aggregation program.
Based on recent auction results, customers receiving their power supply through the SSO will see a reduction in the generation portion of monthly electric bills by approximately $30, starting June 1.
“Today’s approval allows us to invest more than $1.5 billion in critical distribution system investments to address aging infrastructure and serve new customers in our growing service territory,” said Marc Reitter, AEP Ohio president and chief operating officer. “Under the ESP V term, which will run from June 2024 through May 2028, a typical residential customer using 1,000 kWh per month would see an average annual increase of less than 1% or $1.50 per month.”
The ESP was developed with the goal of reducing power outages for customers and making the electric grid survive stronger storms and other situations causing outages.
Moreover, the ESP’s new program, the High Efficiency for Low-Income Program (HELP), will provide $10 million annually to support low-income customers in making their homes more energy-efficient through upgraded lighting, heating equipment and refrigerators.
Additionally, under the commission's order approving the stipulation, AEP Ohio will make a contribution of $400,000 annually throughout the 4-year term to its Neighbor to Neighbor program, administered by Dollar Energy Fund, which provides eligible customers with a utility assistance grant applied directly to their bill. Customers participating in a smart thermostat demand response program will be eligible to receive rebates.
Electric vehicle charging also benefitted by the settlement, offering EV owners with charging equipment at home and save up to 70% off their distribution charges, by charging their vehicles between midnight and 4 a.m.
