AEP Ohio Rate Increases: What You Need to Know
- New rate hikes effective June 1, 2025:
- Generation supply (“Price to Compare”) increases from ~7.32¢/kWh to ~9.97¢/kWh—a ~36% jump—adding about $27/month for a typical 1,000 kWh household
- Distribution base rate increase of 14%, approximately $3.95/month, per 1,000 kWh usage
- Compound effect on bills:
- Households are now seeing total monthly increases of around $30–$35.
- Distribution charges can exceed $100/month just for delivery
- These rate hikes stem from rising wholesale capacity costs (an 833% spike in PJM auction prices) and extensive grid modernization efforts
- AEP is requesting further increases:
- Filed with PUCO earlier this year for more hikes to support infrastructure investment.
- Residential rates may see another 14% bump pending approval
Why This Matters for You
- Electric bills are climbing significantly: AEP Ohio customers in Columbus are facing monthly increases of $30+, expected to continue.
- Higher grid and supply costs mean no relief in sight: Rising capacity and infrastructure expenses will likely drive future rate hikes.
- Fixed-rate alternatives aren’t always cheaper: While some suppliers offer lower or fixed generation rates, delivery and distribution charges from AEP remain—and solar bypasses both.
Solar: Your Shield Against Rising Energy Costs
Installing solar panels in Columbus can:
- Eliminate monthly generation charges by producing your own clean energy.
- Reduce dependence on utility-delivered power, avoiding both supply and distribution surcharges.
- Protect against future rate hikes—once installed, your solar power stays at no cost for decades.
- Offer strong ROI when combined with the 30% federal tax credit (available through 2025).
To summarize: AEP bill increases have already added ~$30+/month for typical Columbus homes, driven by rising wholesale and grid costs. With more hikes likely, going solar now is the best way to regain control and shield your budget over the long term.
Want to learn how much you could save with solar? Schedule a consultation with Icon Solar today!
