AEP plans rate drop starting in 2015

AEP plans rate drop starting in 2015

COLUMBUS

American Electric Power is proposing a rate reduction for Ohio customers beginning in the summer of 2015 — one the state’s rate-payer watchdog says may not go far enough.

The utility expects its electricity rates to fall by as much as 9 percent over the three-year period starting in June 2015, which adds up to a monthly savings of around $9 per month for a typical household.

AEP’s plan still needs approval from the Public Utilities Commission of Ohio. A decision is expected sometime this summer.

The lower rates are expected because of falling prices for electricity in wholesale market fueled by plentiful supplies and sluggish demand.

The Ohio Consumers’ Counsel, which represents utility rate-payer interests, says the utility’s rates are above market rates and still would be too high even with the reduction.

AEP, based in Columbus, provides electricity in Ohio to 1.5 million customers mainly in central, southeastern, eastern and northwestern Ohio.

Associated Press