PUCO Approves AES Ohio Rate Review, First Energy Seeks Rate Hike Too
Posted onAES Ohio Will Raise Rates
Last month, AES Ohio filed to raise distribution rates. Recent reporting states that PUCO has approved these rates. Another for First Energy customers is also in the works. This means high electricity bills will come in time for a chilly and pricey New Year. But how much will this rate increase affect AES Ohio customers and what can you do about it? Let's talk about upcoming rate hikes for AES Ohio and First Energy customers.
Why AES Ohio Wants Rate Increase
First, AES Ohio asked PUCO to approve a distribution rate hike. This is to cover costs for using power lines, wires, and other equipment to move electricity to where it's needed. To make this more reliable, utilities have to invest in the grid to make electricity more reliable. This includes maintaining and replacing power lines as required, tree-trimming, and investing in technology upgrades. The distribution rate is also the part of your electricity bill that utilities can earn a profit from. As a result, AES Ohio filed for a PUCO distribution rate review.
AES Ohio argues that their last rate review was in November of 2020. Since then it has made significant improvements to its grid. But, the utility argues, costs have evolved since then. Now, they need more money to continue making improvements and receive a return on their investment.
However, this means raising customer distribution rates by 14% in Dayton. For standard service customers using 1000 kWh per month, they would see their bills rise by a $21.75.
What Does New Rate Affect?
Part of the electric rate increase goes to improve maintenance costs, including tree trimming to help prevent outages. The filing also mentions the cost for storm prep. This refers to having emergency vehicles at the ready to respond to severe weather events. Still, a big chunk of the increase goes to enhance AES Ohio's operating income and rate of return.
More Ohio Rate Increases
Yet, Dayton customers aren't alone. First Energy Ohio has filed with PUCO to raise $190 million. The utility explains that this increase intends to pay for their grid improvements. Estimates suggest that customers would pay $3 - $18 more per month if they used 1000 kWh of energy per month.
As you can guess, this rate increase has a huge impact on older customers and low-income families. The Ohio Consumers' Counsel is urging customers to contact PUCO and voice their concerns.
Shop Now Before Rate Increase
All AES Ohio and First Energy electricity customers must pay distribution charges, no matter who their supplier is. But you may be able to offset the rate hikes, if you shop for the cheapest electricity rates in own. That's why you should always keep an eye out for deals at https://www.ohenergyratings.com. We're also your best place to visit for the news and tips that could affect your bills.