AEP Ohio Default Service Rates To Further Increase By Another ~1¢/kWh, In Addition To June 1 Increase

AEP Ohio default service electric rates will increase by nearly 1¢/kWh on July 1, due to an update in the bypassable reconciliation factor

As previously reported, the annual June 1 updates to AEP Ohio's generation and capacity rates under the Standard Service Offer are resulting in only a marginal increase in SSO rates for most customers (1 to 3 mills per kWh, depending on class, see prior story for details)

However, a July 1, 2026 update to the bypassable Auction Cost Reconciliation Rider (ACRR), applicable to all SSO classes, will result in a swing (increase) of 0.85166 cents per kWh

Specifically, effective July 1, the ACRR will become a charge of 0.41210¢/kWh, increasing from the current credit of (0.43956)¢/kWh

For an RS non-PIPP residential customer, the July change in the ACRR represents a nearly 10% increase in the total bypassable SSO rate

For an RS non-PIPP residential customer, the June 1 all-in SSO rate is 10.11717 cents per kWh, which will increase to 10.96883 cents per kWh under the ACRR change effective July 1

AEP Ohio also filed to maintain the current level of the bypassable Alternative Energy Rider (AER).