Agreement with American Electric Power would withdraw rate increase proposal

View the OCC’s fact sheet on this issue.

Action

The Office of the Ohio Consumers’ Counsel (OCC) encouraged customers of American Electric Power (AEP) to voice their opinions on a company-proposed plan to make changes to its distribution system and increase rates. Under the plan, AEP would have been able to raise customers’ rates by approximately $71 million over just the first 18 months of a five-year period to try to improve its service.

The OCC opposed AEP’s plan since it would raise rates and the company had not demonstrated that reliability would be improved. Consumers provided testimony at seven Public Utilities Commission of Ohio (PUCO) local public hearings on the AEP plan held in January and February. Consumers spoke about problems with AEP’s service reliability and the affordability of their electric service.

Result

An agreement was reached between AEP, the OCC, the staff of the PUCO and other parties to withdraw the company’s proposal. By withdrawing the case, a rate increase to consumers will be avoided at this time. If approved by the PUCO Commissioners, the agreement also would target $10 million toward cycle-based tree trimming efforts. The $10 million was ordered by the PUCO in July as part of a related case involving AEP’s service reliability. At the time, the PUCO reserved oversight as to how the money would be spent. The company cannot recover this money from consumers.

Thank you to residential consumers, community groups and local public officials for helping the OCC make a difference.