AEP Shifting Charges To Match "True Cost Of Delivery"

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One of the state’s largest utility companies is proposing a change to the way they charge customers for their power. Some groups are crying foul, but AEP Ohio says other changes will offset those costs. 

AEP is increasing the fixed rate, or so-called customer charge, to ratepayer’s electric bills. It’s about a $10 hike per month. But they’re decreasing the cost of using power.

Consumer and environmental advocates argue this shift takes away the incentive to save power in order to lower electric bills.

AEP Vice President Marc Reitter counters that customers who conserve power will still see a positive impact on their bills.

“They should continue to save we feel that this does not prohibit energy efficiency by any means.”

Reitter says this is a redesign of the way power is priced for the customer in order to match what he calls the “true cost of delivery.” And Ohio’s other major utilities are also seeking to increase the fixed charge.