AES Ohio files Distribution Rate Review

An electric utility distribution rate case is a formal proceeding where a utility requests permission to increase its distribution rate from the Public Utilities Commission of Ohio (PUCO). Rate cases are a primary way for governments to regulate the utilities that provide electricity, natural gas, and water to customers. 

During a rate case, the utility must document how much revenue it needs to: provide reliable service, maintain and repair equipment, and provide a reasonable rate of return on capital investments. 

The PUCO then determines the price per kilowatt/hour. The rate case process must be completed within 275 days. 

Parties to the case can:

•     File objections to the staff report
•     Submit written expert testimony
•     File an application for rehearing
•     Appeal the Commission decision to the Supreme Court of Ohio

Customers have an opportunity to provide feedback by:

• Attend a public meeting
• Providing online feedback on the Public Utilities Commission of Ohio website
• Mailing the Public Utilities Commission of Ohio

An electric utility files a distribution rate case with the Public Utilities Commission of Ohio (PUCO) to formally request an increase to its distribution rate. The rate case process is a key tool for regulating utilities and ensuring that the PUCO is able to balance the needs of residential and commercial customers along with the electric distribution utility.

During a rate case, the PUCO:

• Investigates: The PUCO staff inspects infrastructure, reviews financial and plant records, and assesses customer service.
• Schedules hearings: The PUCO schedules hearings, including local public hearings. 

The rate case process is intended to: Ensure that utilities earn a fair profit, Provide basic consumer protections, and balance the needs of utilities and consumers. 

Some reasons a utility might request a rate increase include: To recover investments in the distribution system, improve the customer experience and establish a customer assistance program.

The last time AES Ohio asked the PUCO to review our distribution rates was November 2020. Since that time, AES Ohio has made significant investments to benefit our customers including its distribution infrastructure and tree trimming program. These investments have strengthened the safety, reliability, and resilience of our system, driven economic development fueling growth in West Central Ohio, and are transforming the customer experience.

To enable AES Ohio to continue this progress, the utility has requested the PUCO to approve rates that include these investments and align the value of electric distribution service with its costs. If the PUCO approves the rates as proposed, the monthly bill for a typical residential customer using 1,000 kWh would increase by $21.75, a 14.2% increase to the total bill for Standard Service Offer customers.

1.AES Ohio has several programs to help manage your energy usage.

• Budget Billing: Customers can have a predictable energy bill by enrolling in AES Ohio's budget billing program. It evens out seasonal highs and lows, so customers pay the same amount each month.
• AES Ohio Marketplace: Customers can shop for energy-saving home upgrades at AES Ohio Marketplace. Additionally, customers apply generous rebates to a variety of well-known brands of smart thermostats.

2. AES Ohio offers several payment assistance programs for customers, including:

• Home Energy Assistance Program (HEAP): Provides assistance with winter heating bills based on household size, income, and heating fuel type 
• Emergency Home Energy Assistance Program (EHEAP): Provides funds to restore or continue service for up to 30 days if a customer is unable to pay their bill or has less than 10 days of heating fuel 
• Home Energy Assistance Winter Crisis Program (HEAP Winter Crisis Program): Helps income-eligible Ohioans maintain utility service 
• Gift of Power: Provides emergency relief funding to customers who are facing disconnection and cannot pay their electric bills

3.AES Ohio offers three types of pay agreements to help residential customers:

• 1/9 pay agreement: We'll divide your past due balance in 9 equal payments and add that to our estimate of your next 9 bills to calculate 9 equal monthly payments. 
• 1/6 pay agreement: We'll divide your past due balance over your next 6 bills and add it to your regular monthly payments. 
• Winter heating plan: Available to AES Ohio customers for bills that include usage from November 1 through April 15. During this time, you may avoid disconnection by paying 1/3 of your balance due to AES Ohio each month. 

4.The Public Utilities Commission of Ohio (PUCO) offers several programs to help Ohioans with their energy bills, including:

• Home Energy Assistance Program (HEAP) Winter Crisis Program: Helps eligible Ohioans maintain utility service during the winter months. This program runs from November 1 to March 31 each year. To be eligible, you must be at or below 175% of the federal poverty guidelines. You can apply for assistance by contacting your electric or natural gas utility.
• Special Reconnect Order: Helps income-eligible Ohioans keep their heating source. There is no income eligibility requirement to use this order, but customers who are at or below 175% of the federal poverty guidelines may apply for assistance through the HEAP Winter Crisis Program. You can contact your electric or natural gas utility between October 14, 2024, through April 18, 2025, to find out how to apply.
• Percentage of Income Payment Plan Plus (PIPP Plus): Helps income-eligible Ohioans manage their energy bills year-round. This program allows income-eligible Ohioans to pay their energy bill each month based on a percentage of their income.