Higher Bills Following AES Rate Hike
This year, prepare for even more expensive summer electric bills. This is because AES, an Ohio energy utility, is raising prices to cover growing costs. Although inflation and high energy prices are a concern, these rate hikes are approved to go into effect this month. So, let’s dig into why PUCO approved the AES rate hike and how this impacts your monthly bill.
What Are the AES Rate Hikes?
On all electric bills, you’ll notice charges for more than just the electricity you use at your Ohio electric rate. Utilities rely on their distribution charges to cover costs for personnel, service, equipment maintenance, and more. However, to update these charges, utilities must apply to PUCO and go through an approval process.
Last year, AES Ohio applied to PUCO to add the transmission cost recovery rider to customers’ bills. In March, AES applied again to hike up this charge. These requests for rate increases are not rare. In fact, AES is just the most recent in a string of rate increases this year, according to WYSO.com.
Still, Ohioans in the Dayton area and more are concerned about these rising costs.
OCC Fighting Back Against AES Rate Hike
If the idea of a higher electric bill is alarming to you, you’re not alone. The Ohio Consumer’s Council (OCC) has been vocal against this most recent rate hike since the beginning. The OCC is concerned AES Ohio and other utilities could be overcharging consumers. Specifically, many of these rate increases are approved to cover the costs of grid upgrade projects. However, the OCC argues there’s no oversight for these projects. As a result, it’s hard to know if the millions of dollars spent on these upgrade projects are really effective or not.
The PUCO overruled OCC’s objections and approved the AES Ohio hike at the beginning of June. But the fight isn’t over. The OCC has filed a complaint with the Federal Energy Regulatory Commission (FERC), too. No decision has been made there, yet.
What is the Impact of AES Rate Hikes?
Getting into specifics, PUCO approved a 53% increase to AES Ohio’s transmission charges. For the average consumer, this amounts to about $40 per year or $3.33 per bill. Although that may not seem like too much, many people are already struggling to pay electric bills and keep up with rising costs on other necessities. Furthermore, rate increases come up each year. At 53% hikes each year, bills could become completely unmanageable.
But remember, you can be a part of this process. The OCC represents your concerns with PUCO and utilities. Look up meetings and hearings to attend and directly support the OCC. Additionally, contact the FERC before their decision on the OCC complaint.
You also have options to directly impact your electric bill. Thanks to Energy Choice Ohio, you can choose an electric supplier with the best rate. Find the cheapest plan easily when you compare prices all in one place at https://www.utilityrates.com.