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Retail Supplier Switching Fee Eliminated As PUC Approves Settlement
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The PUC of Ohio approved without modification a stipulation among major parties to the electric rate case of AEP Ohio (Ohio Power) which eliminates the current switching fee applicable to switches to a retail electric supplier
Signatory parties to the settlement included AEP Ohio, PUCO Staff, Ohio Partners For Affordable Energy, IGS Energy, the Retail Energy Supply Association, Ohio Energy Leadership Council, Ohio Energy Group, and various other parties including other large customers. The Ohio Consumers' Counsel opposed the stipulation
Under AEP Ohio's prior tariff, a $5 switching fee applied to any switches to a retail supplier, after an initial switch, and is charged to retail suppliers. Under AEP Ohio's prior tariff, the $5 switching fee does not apply to switches to default service
The adopted stipulation removes the switching fee from the AEP Ohio tariff, with the revenue shortfall being reassigned
As first reported by EnergyChoiceMatters.com, AEP Ohio in the rate case had proposed, via tariff changes, that a competitive retail electric service (CRES) provider shall be deemed in default of its obligations under the utility's Customer Choice Program if, among other things, "The CRES fails to take suitable and timely action to stop inappropriate language showing on consolidated bill ready bills."
Retail suppliers had opposed this vague language
Under the approved settlement, this language is modified to provide that, "CRES Providers shall not include any profane or vulgar language on any customer bills."
Under the adopted settlement, AEP Ohio will maintain as $0 placeholder riders the Retail Reconciliation Rider and SSO Credit Rider, until May 31, 2028. As previously reported, these riders were previously adopted as placeholder riders for potential implementation of a mechanism to compensate shopping customers for costs included in base rates which are solely related to default service, but the riders have never been established at any level other than $0. Generally, these riders had been designed as a proxy to allow further costs to be effectively unbundled from base rates (with only SSO customers paying the Retail Reconciliation Rider and all amounts which are collected under this rider then returned to all distribution customers under the SSO Credit Rider).
Additionally, the approved stipulation includes a provision concerning the costs of assessments to fund PUCO and the OCC, though the stipulation's adoption does not resolve the issue. Retail suppliers argue that PUCO/OCC assessments related to default service revenues should be bypassable, since retail suppliers also must pay assessments based on their supply revenues (resulting in shopping customers paying PUCO/OCC assessments based both on their own shopped supply revenue, as well as based on SSO supply revenue). PUCO Staff has previously opposed removing SSO-related PUCO/OCC assessment costs from base rates
The stipulation provides that, through 5/31/28, AEP Ohio will track and record the variance (positive or negative) between the test-year PUCO and OCC assessment amounts and actual assessments, and the utility shall be authorized to record such variances as a regulatory asset or liability, with no carrying costs. The stipulation states that the Signatory Parties reserve all rights regarding future recovery of any such regulatory asset or liability
The adopted stipulation approves, as proposed by AEP Ohio, new levels for the fees for annual and initial retail supplier registrations
Under the adopted settlement, AEP Ohio will increase the annual competitive retail electric service provider (CRES) registration renewal fee to $128 from the current $100
For initial CRES registrations, AEP Ohio under the settlement will increase the initial CRES registration fee to $356 from the current $100
Cases 25-393-EL-ATA, 25-392-EL-AIR, 25-394-EL-AAM, Ohio Power
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April 1, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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