Switch from AEP Ohio to a Lower 2023 Electricity Rate

 

AEP Ohio Electricity Rates June 2023 by ElectricRate

If there was ever a time for AEP Ohio electricity customers to consider switching onto a competitive rate plan, the summer of 2023 is that time.  AEP Ohio customers are facing harsh rate increases on their electric bills during the summer due to a historic rise in the standard service offer rate (SSO) throughout the AEP service territory.  Luckily for these customers, the price spike can be offset for those consumers who take the time to shop for a competitive Ohio electricity rate.

Electricity customers in the AEP Ohio service territory who are on the SSO rate will see a 58% increase on the power supply portion their electric bill.  The AEP Ohio service area includes the parts of Ohio that were provided power by the companies formerly known as the Ohio Power Company and the Columbus Southern Power Company.  The SSO default rate will go from $0.0749 per kWh to $0.1184478 per kWh on June 1, 2023.  The current lowest AEP Ohio electricity rates available are under $0.07 per kWh; not only can customers avoid the AEP rate hike by shopping, but they can get an even lower rate that the SSO price prior to the rate hike.

Rate Impact on AEP Ohio Electricity Choice

The massive rate hike is occurring due partly to how the electricity choice market in Ohio has been set up.  Rather than making shopping for an electricity plan mandatory as is the case in the Texas electricity choice market, Ohio power customers are not forced to shop.  Those that do not choose a competitive electric rate plan are authentically placed on their local utilities’ default supply rate, or the SOS rate.  

The SSO rate is sometimes referred to as the Price to Compare, as this is the rate consumers can compare to competitive rate offers to see if they are able to save money on their monthly AEP Ohio electric bills.  The SSO rate spike in the AEP Ohio service area is a result of the timing of the auction that occurred for the specific rate.  In a nutshell, the SSO rates that default  paying customers will pay this summer in AEP Ohio for procured during a spike in the wholesale energy markets.  This will cause AEP Ohio electric bills to rise substantially for those customers who do not take the time to shop for competitive electricity rates.

Lowering the AEP Ohio electric bill

Copy of PECO PTC vs ElectricRate Graph by ElectricRate

Fortunately for those power customers on the AEP Ohio default rate there is a solution to not only prevent paying the high SSO rate, but actually pay less that what the SSO rate was before June 1.  Since Ohio has a competitive electricity choice market customers are able to shop for the best electricity price that is being offered by licensed electricity suppliers.

These competitive suppliers are able to purchase electricity from the current wholesale energy market which has gone down tremendously since the SSO rates were established.  These rates are not only a lot lower that the summer default rates, but some are even lower that the default rate prior to the rate hike.

When a customer chooses an electricity rate plan from a competitive supplier, that supplier’s rate simply replaces the SSO rate on the AEP Ohio electric bill.  In the electricity supply section of the bill it will state which competitive supplier is providing your power and at what rate, so you can check to make sure the rate you selected matches the rate on the bill.  All competitive Ohio electricity companies are licensed and regulated by the Ohio Public Utility Commission.

If you are looking to save money on your AEP Ohio electric bill and are on the default SSO rate, the easiest and quickest thing you can do is to choose a low Ohio electricity rate from a respected electricity supplier.

How to Switch AEP Ohio Suppliers?

Switching from the AEP Ohio default rate onto a competitive plan can be accomplished in as little as five minutes with a few clicks on your computer or phone.  Changing electricity companies in Ohio doesn’t involve a service team from the utility to visit your home, nor will it require your power going out for any period of time.  It is a seamless switch that you will not even realize has taken place.

After you shop and compare Ohio electric rate offers, simply click on the plan that you desire and fill out the enrollment form.  The only piece of information that you will not know off of the top of your head – such as name and address – will be the Service Delivery Identifier and can be found on your AEP Ohio electric bill.  Here is a sample AEP Ohio electric bill, the Service Delivery Identifier can be found on page 3 at the top of the line item charges.

Once the enrollment form is submitted you are done with the switch process.  The enrollment form will go to the competitive Ohio electricity supplier that you have chosen, and then they will submit the change request to AEP and the Ohio Public Utilities Commission.  The switch will take place at your next available meter read date.  Nothing will change except for the price you pay for electricity supply.

Compare AEP Ohio Electric Rate Plans

Available competitive rate plans in the AEP Ohio service area are below.  Each rate plan is an apples to apples comparison against each other and to the AEP Ohio SSO default rate.  There are no hidden fees or surprises, just the price that is listed.

While some customers are just looking for the absolute lowest Ohio electricity rate, others might be willing to pay a little higher price in return for locking in the rate for a longer period of time.  It is anyone’s guess as to where energy prices are headed in the second half of the year or next year.  Locking in a long term fixed rate will not only save customers money on their electric bills right away, but might end up saving them even more down the road.