AEP Ohio customers are being hit with a 36% jump in the “Price to Compare” (PTC) for the generation portion of your bill. That said, most customers can still save money on electricity bills by shopping for an alternative Ohio power supplier.
By Jordan Watts
Temperatures aren’t the only thing rising this summer in Ohio — many residents are facing steep increases to their electricity bills due to new default rates that took effect on June 1. Among those affected, AEP Ohio customers are being hit the hardest with a 36% jump in the “Price to Compare” (PTC) for the generation portion of your bill. Although these rates are approved by the Public Utilities Commission of Ohio, that doesn’t mean they’re the best. Most customers can still save money on electricity bills by shopping for an alternative Ohio power supplier.
Before you determine which path is best for your household though, let’s break down the reasons for the increase in cost and what the actual impact will be on your wallet. We’ll also dive into programs available to help those facing challenges managing these new costs for energy.
For AEP Ohio residential customers who receive their power supply through the company’s Standard Service Offer (SSO), the Price to Compare recently saw a sharp spike. The PTC, which was previously around $0.0732kWh for April 1 to May 31, 2025, rose to approximately $0.0997/kWh on June 1, 2025 and will remain there till May 31, 2026.
In practice, this new rate will translate to an estimated $27 increase per bill for a typical residential customer using around 1000 kWh of electricity each month. While each customer is different and your actual bill increase will depend on the size of your home and your individual consumption, most customers will see a significant increase.
While it might feel like these increases are coming out of nowhere, the AEP Ohio rate surge has been a long time coming. As demand increases on the grid there has been a significant surge in capacity costs that’s being directly passed through to consumers since it’s necessary to maintain reliability.
Capacity refers to the costs associated with ensuring there’s enough power generation available to meet the area’s electricity demands, especially during extreme weather. Last summer, PJM Interconnection, the organization that manages the electric grid for Ohio, conducted a capacity auction that saw prices increase by a whopping 833% compared to in 2023.
While AEP Ohio delivers electricity to residents and maintains the power lines, they do not generate power themselves. The rising cost of securing this generation capacity in the wholesale market is the leading cause of the upcoming increase. At the same time, increasing demand for power (driven by data center growth and increased reliance on electronics) paired with the retirement of aging power plants, are contributing to the higher generation costs.
It’s no surprise that significant increases in electricity bills can create financial strain for many folks, especially right as it’s getting hot out. To help, AEP Ohio, along with state and federal partners, offer several programs to help customers in need. If you’re struggling to pay your monthly electricity bill, don’t hesitate to explore the following resources:
This program is funded by the state of Ohio and allows eligible low-income households to pay a percentage of your gross monthly income towards energy bills. For every on-time payment, a position of your outstanding power bill balance is reduced, helping you to gain control of debt.
The Home Energy Assistance Program, also known as HEAP, is a federally funded program that provides one-time grants to eligible low-income households to help with your energy bills. Each state has different guidelines, but you can find more information on their resources here.
This program is administered by the Dollar Energy Fund and offers a one-time grant to eligible AEP Ohio customers experiencing financial hardship. Eligibility often requires a good-faith payment history and an outstanding AEP Ohio bill balance.
AEP Ohio can, and will, work with customers to set up flexible payment plans to manage past-due balances or offer short-term extensions if you need a few extra days to pay the bill on your account number in full.
To learn more about these programs and determine if you’re eligible after the recent rate changes, you can visit the AEP Ohio website’s payment assistance section, contact their customer service line at 1-800-672-2231, or dial 211 to connect with your local assistance resources.
Pro Tip: To prevent disruptions in service, make sure that you act quickly in anticipation of any difficulties paying you energy bill. The sooner you can request assistance, the more likely you are to receive the necessary tools.
Ohio residents have a couple of options available to compare competitive electric rates and shop for a fixed-rate plan to avoid AEP’s Price to Compare fluctuations:
Operated by the Ohio Public Utilities Commission, the Apples to Apples Ohio website offers a comprehensive marketplace with hundreds of competing energy offers. While this provides a vast array of choices, it’s often overwhelming to navigate and find plans that fit your specific needs.
EnergyBot has helped thousands of customers just like you find the right electricity plan for their home or business. With over a thousand 5-star reviews, we’re committed to helping you find exactly what you need. Use our guided shopping flow to narrow down plans to those that fit your needs best– whether that’s the cheapest electricity rates, superior customer service, or green options.
The recent AEP Ohio rate increase is driven primarily by skyrocketing capacity costs from the PJM auction, but will impact household budgets across the state. While an estimated $27 increase in energy bills per month may not sound significant immediately, it will rapidly add up to hundreds of dollars each year. By shopping around for the best energy rate now, you can save money for your home in the long run.
