ESP settlement agreement opens path for AEP Ohio to invest in electric grid, customer savings programs
Following a settlement agreement filed with the Public Utilities Commission of Ohio (PUCO) this week, AEP Ohio will resume investments into grid reliability, bolster economic development measures and launch new programs to provide customer savings and manage energy use.
The settlement was in regards to AEP Ohio’s Electric Security Plan (ESP) filed in January. As is, the company intends to run its next leg from June 2024 through May 2028, during which a typical residential customer would see bill increases of about $1.50 per month.
“When we submitted our Electric Security Plan, our focus was on the investments we needed to make to improve the reliability and resiliency of the electric grid,” Marc Reitter, AEP Ohio president and COO, said. “The agreement we have reached will allow us to accomplish needed work that will allow us to better meet our customers’ expectations. We recognize the financial challenges many of our customers are experiencing due to rising inflation and we worked hard to limit rate impacts in this agreement.”
Under the terms of the settlement, AEP Ohio will be able to invest more than $1.5 billion into the distribution system as a way to counter aging infrastructure and grow for new customers. New customer savings programs will be launched, including the High Efficiency for Low-INcome Program (HELP), which offers $10 million annually to help low-income customers make their homes more energy efficient through lighting, heating and refrigerator updates. Rebates will be offered to those who join a smart thermostat and demand response program.
AEP Ohio will also deploy a new rate to support electric vehicle charging, offering owners with home equipment the chance to save up to 70 percent off their distribution charges by powering them between off-peak hours of midnight to 4 a.m.
On top of these savings and stability measures, the utility also intends to launch a new economic development program for distressed and rural areas through $900,000 in annual grants. It will work with state, regional and local development partners, as well as private sector entities, to promote investment and bring new jobs to the region.
This, however, remains dependent on approval by PUCO.
