Advocates Argue AEP's Newly Increased Rates Are Doing the Opposite of Saving Power

Apr 19, 2017

One of the state’s largest utility companies is proposing a change in the way they charge customers for their power. Consumer groups are objecting, but AEP Ohio says other changes will offset those costs. 

AEP wants to increase the fixed rate, or so-called customer charge, to ratepayer’s electric bills. It’s about a $10 hike per month. But they’re decreasing the cost of using power.

Consumer and environmental advocates argue this shift takes away the incentive to save power in order to lower electric bills.

AEP Vice President Marc Reitter counters that customers who conserve power will still see a positive impact on their bills.

“They should continue to save; we feel that this does not prohibit energy efficiency by any means,” Reitter says.

Reitter says this is a redesign of the way power is priced for the customer in order to match what he calls the “true cost of delivery.” Ohio’s other major utilities are also seeking to increase the fixed charge.