AEP Ohio Rates: Current Default Rate, Bill Parts and History

Generation: the supply portion

Generation is the cost of producing electricity. To supply default-rate customers, AEP Ohio holds competitive wholesale auctions in which suppliers bid. PUCO says the utility passes the auction price along with no markup and cannot earn a profit on it.

On AEP Ohio's bill, the default supply price is made up of four riders: the Generation Energy Rider, Generation Capacity Rider, Auction Cost Reconciliation Rider and Alternative Energy Rider. AEP Ohio's tariff marks all four as charges you stop paying when you choose a supplier.

Results from several auctions are blended, and each auction covers a set period, typically one or two years. PUCO says the default rate also carries the cost of running the auctions, costs tied to Ohio's renewable portfolio standard and riders that PUCO has approved.

PUCO certifies the auction results but cannot change the prices the market sets. It ties the 2022 and 2023 increases largely to the pandemic, inflation and global conflict, and the summer 2025 increase largely to higher capacity prices at PJM, the regional grid operator.

Transmission: the high-voltage grid

Transmission carries power over high-voltage lines from power plants to local substations. The Federal Energy Regulatory Commission (FERC) and PJM oversee its rates, and PJM assigns the costs to utilities such as AEP Ohio, which pass them on to customers. PUCO has reported that transmission costs have been rising across the PJM region.

AEP Ohio's tariff lists its transmission charge, the Basic Transmission Cost Rider, among the charges you pay whether you take the default rate or buy from a supplier, so a supplier offer does not replace it.

Distribution and riders: the local wires

Distribution covers the poles, wires, substations and meters near your home. PUCO oversees these rates, and AEP Ohio needs PUCO permission before it raises them. Ohio law lets a utility recover its costs plus a reasonable return on its investment, and PUCO reviews each request in a rate case.

A **rider** is a charge, approved by PUCO, that lets a utility recover the cost of a specific program. PUCO says a rider may appear as its own line item or sit inside the distribution charge, and it is reviewed about once a year. PUCO's Ohio Utility Rate Survey lets you enter a monthly usage and see the bill components for each utility.

When staying put may be the better choice

• Every offer you find is above the price to compare, or sits below it only until a monthly fee is added.
• You do not want a contract term, an early termination fee or a renewal date to track.
• You take part in the Percentage of Income Payment Plan Plus (PIPP Plus), which PUCO says is not eligible for energy choice.
• Your community already buys supply for you through governmental aggregation, a buying group that local voters approved, unless you opted out.

The default rate is not fixed, either. It changes by period, as the table above shows, while a fixed offer holds one price through its term.

The real risks of switching

• Introductory price. Some contracts start with one price for one to three billing cycles, then move to a different fixed or variable price. A variable price can change by the hour, day or month, so ask what happens when the contract ends.
• Early termination fee (ETF). This is a charge for ending a contract before its term is up. Ask for the amount before you sign.
• Monthly fee. Some suppliers add a fixed monthly charge on top of a usage-based rate. Count it when you compare.
• A price to compare that moves. The default rate resets by period, so an offer that is below it today may not stay below it later.

How the switch works

When you enroll, the supplier sends AEP Ohio an electronic enrollment request. AEP Ohio says it must arrive at least 12 days before your next scheduled meter read, and the switch takes effect at that read. The utility then mails a confirmation, and you have seven days from its postmark date to cancel.

We are a broker. Suppliers pay us a commission when a household enrolls, and we also charge a service fee. There's no cost to check, and you see the fee terms in your offer.