Significant opportunities to reduce electricity costs exist for consumers who receive their electric bill from AEP Ohio power. Recent declines in wholesale energy markets have allowed licensed competitive electricity suppliers to slash their offered rates well below the default rate that Ohio Power offers to customer for power supply. The difference between competitive rate offers and the utility default rate can result in reduced monthly electric bills.
Through Ohio electricity choice laws, consumers have the ability to shop the market for competitive electricity rates instead of just paying a regulated rate which can often times be higher than the price that a competitive market can produce. The American Electric Power company delivers power to approximately 1,057,310 residential customers through two operating companies which it acquired in recent years – Southern Columbus Power Company and Ohio Power. Despite strong energy choice awareness throughout Ohio, at the end of June 2016 only 34% of AEP customers were purchasing their power from a competitive supplier, the lowest switch rate among all of the Ohio utility service areas. In contrast, shopping activity in The Cleveland Electric Illuminating Company service area was at 73% at the 2016 mid point.
Shopping activity in the AEP Ohio Power service area has been slow to this point largely because of relatively low default rates. Low electricity prices and savings are the primary catalysts for first time power shoppers. When savings are not available, Ohio electricity suppliers have a hard time attracting new customers. While AEP Ohio Power has been able to continue to offer low default rates, movements in the energy markets have presented opportunities for competitive suppliers to offer even lower prices. The second half of 2016 should bring a wave of new customers to competitive Ohio suppliers as first time shoppers learn of the savings available.
Low AEP Ohio Power rates offered by licensed Ohio electricity suppliers are displayed below. All rates are updated daily. AEP continues to send customers their electric bill even if a customer chooses to purchase their power supply from a competitive supplier. The reason for this is because AEP continues to serve as a regulated power delivery company for all of their customers.