Despite AEP Ohio Price Drop in July Competitive Savings Remain High

AEP Ohio Electric Rate Savings Potential by Todd Yasbin
Its been a tough summer for AEP Ohio electricity customers as energy price hikes have caused a sticker shock for many customers as their electric bills have arrived. AEP Ohio customers on the default rate saw the price they pay for electricity supply increase by 58% on June 1, 2023. Many customers haven’t fully appreciated what that increase will do to their electric bill, and likely won’t until they receive their AEP Ohio electric bills in July or August for the June service period.

AEP Ohio recently released their new price to compare default rate, also referred to as standard service offer, that will go into effect on July 1, 2023 and likely stay in effect for several months. The new July rate will drop slightly from the June rate, but only by 5%. The 58% increase in June saw the price to compare rate jump to 11.82¢ per kWh, and that price will drop to 11.20¢ in July.

Meanwhile, competitive Ohio electricity suppliers continue to offer rate plans well below even the new lower July default rate. The lowest AEP Ohio electric rates are offerings savings as high as 40% versus the standard service offer default price. This presents a clear path for customers on the default rate to easily lower their Ohio electric bills simply by switching from AEP Ohio to a lower electric rate plan.

The Ohio Public Utilities Commission’s last electricity choice activity report released in May stated that 56% of AEP Ohio customers were still on the default rate. This represents more than 850,000 customers who will experience the shock of higher than expected electric bills as they arrive in July and August.

These customers should waste no more time in shopping for a low AEP Ohio electric rate so that they can bring their electricity expenses back down to levels experienced before the summer rate hike. In 2022, the AEP Ohio price to compare that went into effect on July 1 stayed the same through October 2022. The same is expected for this year, meaning that default rate payers who do not shop for a competitive Ohio electric rate can expect to pay 11.20¢ per kWh through October instead of competitive rates that are available below 7¢.

Locking in a low fixed Ohio electric rate will not only save AEP Ohio customers in the near term, but could also protect them from potential future increases in the price to compare in the future and add further protection resulting in lower AEP Ohio electric bills. AEP Ohio expects to change their price to compare rate again in October of 2023, followed by rate changes in January and April of 2024. As of now there is no way of knowing what those rates will be set at.

AEP Ohio customers can save money now and protect themselves from volatility and electric bill surge surprises by locking in a low fixed electricity rate plan. The lowest rates available are listed below and are updated in real time.