AEP Ohio Electricity Rates: Columbus & Central Ohio Guide

AEP Ohio is Ohio's biggest electric utility. They serve about 1.5 million customers^[1] spread across 61 counties in central and southern parts of the state.

Here's the thing most people don't realize: AEP Ohio doesn't make any electricity. They're a subsidiary of American Electric Power (one of those massive utility holding companies), but all they do is deliver power and maintain the grid. The actual electricity? They buy it on wholesale markets just like everyone else.

The Public Utilities Commission of Ohio (PUCO) regulates them, which means they can't just charge whatever they want. They've got to play by Ohio's rules.

If you live in Columbus, Newark, Marion, Lancaster, Chillicothe, or Portsmouth, you're probably in AEP territory. Same goes for dozens of smaller towns throughout central Ohio. And here's what matters: whether you stick with AEP's standard service or switch to a competitive supplier, AEP still owns the poles and wires. They're still showing up when your power goes out at 2am.

AEP Ohio used to be two separate companies before they merged. Ohio Power Company covered southern and eastern Ohio. Columbus Southern Power handled the Columbus metro area. They came together under the AEP Ohio umbrella but kept their own rate zones for a while.

Good news: after PUCO forced them to harmonize rates, residential customers in both zones now pay the same Price to Compare. Your bill might still show which zone you're in, but it doesn't matter anymore when you're comparing supplier offers. Same rate either way.

Geographically, AEP Ohio covers Franklin County (that's Columbus), Delaware County just north, Fairfield and Licking counties nearby, and then dozens of rural counties that stretch all the way down to the Ohio River where we border West Virginia and Kentucky. That's a lot of territory.

The Price to Compare is your benchmark number. It's what you pay AEP Ohio for generation (the actual electricity supply) when you stick with their standard service.

Right now, from October through December 2025, the residential Price to Compare sits around 9.8 cents per kilowatt-hour. That reflects what AEP pays on wholesale markets plus their procurement costs. This number changes every quarter when wholesale conditions shift.

Look at what happened in 2024. Rates jumped about 36% from where they were before. The main culprit? PJM capacity market costs went up 833%. Not a typo. We'll get into why that happened in the next section, but yeah, it hurt.

When you're shopping for competitive suppliers, here's the simple rule: only consider offers below 9.8 cents. Anything higher and you're paying more than just staying with AEP. Delivery charges (another 4-5 cents per kWh) stay the same no matter who supplies your power, so those don't change the math.

If your AEP Ohio bill jumped in 2024, you're not alone. Some customers saw their bills go up 30-40% compared to what they were paying before. That's brutal.

The main problem is something called the PJM capacity market. PJM runs the regional power grid, and they hold auctions to make sure there's enough power plant capacity to meet demand when everyone cranks their AC in August. The 2024-2025 auction cleared at $269.92 per megawatt-day. Sounds like gibberish, right? What matters: that's 833% higher than the previous year.

Three things caused this mess. First, old power plants keep retiring faster than new ones get built. Less supply means higher prices. Second, data centers are popping up everywhere and sucking down massive amounts of electricity. Third, transmission constraints mean we can't always move power from where it's cheap to where it's needed.

AEP Ohio doesn't pocket these costs. They pass them straight through to you via the generation portion of your bill. The PUCO watches this happen but can't control what happens in wholesale markets.

The catch: competitive suppliers face the exact same capacity costs. They can't magically avoid them. But a fixed-price contract locks in your rate for a year or two, so at least you know what you're paying instead of getting blindsided by quarterly increases.

Ohio Energy Choice lets you shop for electricity the same way you shop for phone service or internet. AEP Ohio still delivers the power and maintains the grid, but you pick who generates it.

Switching takes maybe five minutes if you have your account number handy. First, find your current Price to Compare on your AEP bill or their website. Then compare rates on PUCO's Apples to Apples comparison tool or ElectricRates.org. When you find something better, contact that supplier to enroll. AEP can't enroll you themselves (weird rule, but that's how it works).

ElectricRates.org does the math for you, automatically calculating how much you'll save compared to AEP's current Price to Compare. Makes it easier than squinting at spreadsheets.

The whole switch takes about one billing cycle, roughly 30 days. Your lights don't flicker. Nothing physical changes. You just get a different supplier name on your bill and (hopefully) a lower generation charge. Changed your mind later? Go back to AEP's standard service anytime. No penalty. No questions asked.

If you live in Columbus city limits, you've probably heard about Clean Energy Columbus. It's the city's municipal aggregation program, and it's pretty clever.

How it works: if you're eligible and within Columbus boundaries, the city automatically enrolls you in a bulk electricity contract they've negotiated. You'll get a letter giving you 21 days to opt out if you don't want it. If you do nothing, you're in.

The late 2024 rate was around 9.08 cents per kWh for 100% renewable energy. That's not just below AEP Ohio's Price to Compare – it's 100% renewable. Wind and solar projects. No premium pricing for being green. That's rare.

Why I think this is smart: most people never bother shopping for electricity even though they could save money. Clean Energy Columbus does the shopping for you. Get decent rates, reduce your carbon footprint, and you didn't have to do anything. But you can still opt out anytime if you find something better on your own. Or go back to AEP's standard service if you want. Your choice.

AEP Ohio bills split your costs into separate chunks. Understanding which chunks you can control helps you figure out where to save money.

The generation charge is the big one you can shop for. That's the actual electricity supply. Either you pay AEP's Price to Compare or whatever rate you locked in with a competitive supplier.

Delivery charges cover the physical infrastructure. Power lines on your street. Transformers. Meters. Grid maintenance. These stay with AEP no matter who supplies your electricity. You can't shop for delivery.

Distribution charges scale with how much electricity you use. The more kilowatt-hours you consume, the more you pay. Makes sense.

Customer charge is a fixed monthly fee just for having an account. Usually not much, but it's there.

Riders and adjustments are the annoying line items that fund things like grid improvements, renewable energy mandates, and regulatory compliance programs. They change occasionally but you have zero control over them.

Your bill shows usage in kilowatt-hours (kWh). That number is what lets you compare supplier rates directly. If you switched to a competitive supplier, they replace the generation charge with their rate. But AEP still sends you one combined bill with everything on it.

AEP Ohio handles every single power outage in their territory. Doesn't matter if you switched suppliers or not. Your lights go out, AEP fixes them.

Report outages three ways: online at AEPOhio.com, through their mobile app, or call 1-800-672-2231. The outage map shows which areas are affected and gives estimated restoration times. I always check it during storms to see if they even know my street is dark yet.

AEP invests over a billion dollars annually in grid modernization. Smart meters that detect outages automatically. Automated switches that reroute power. Vegetation management so trees don't knock down lines every time the wind picks up. Their service reliability exceeds 99.9% for most customers, which sounds impressive until you realize that remaining 0.1% usually happens when you're trying to work from home.

If you get stuck in an extended outage, AEP might provide bill credits under PUCO rules. Might. Don't count on it, but it happens sometimes.

What matters: switching suppliers never affects how fast AEP responds to outages. The crews don't check your account before fixing your street. Everyone gets the same service.

Downed power lines? Call immediately. AEP prioritizes safety hazards over routine outages. Stay away from the wires and let them handle it.

If your AEP Ohio bill is more than you can handle right now, several programs might help.

PIPP Plus caps your bill at 6% of household income if you qualify based on income limits. That's way better than the wild swings you'd see otherwise when rates jump or you run the AC all summer.

HEAP provides one-time payment assistance through the Ohio Development Services Agency. It's not recurring help, but it can get you through a rough patch.

Neighbor-to-Neighbor lets customers who are doing okay donate to help others who aren't. Nice concept. If you need it, no shame in using it.

Budget Billing spreads your annual costs into predictable monthly payments instead of getting hammered with huge bills in July and January. Some people love knowing exactly what they'll pay. Some people hate it. Pick your preference.

Payment extensions and installment plans are available if you call customer service. Don't just ignore a bill you can't pay. They'd rather work something out than send you to collections.

Ohio has disconnection protections during extreme weather. PUCO rules prevent shutoffs when it's dangerously hot or cold. Medical certificates protect customers with serious health conditions for up to 30 days if you need electricity for medical equipment or health reasons.

Switching suppliers cuts your per-kWh cost. But using less electricity in the first place saves even more.

AEP Ohio offers home energy audits, appliance rebates, and weatherization assistance for qualifying customers. Free money to make your house more efficient. Take advantage of it.

Smart thermostats reduce heating and cooling costs by 10-15%. They learn your schedule and adjust automatically. No more heating an empty house all day because you forgot to turn down the thermostat before work.

LED lighting uses 75% less energy than those old incandescent bulbs. Plus they last forever. I haven't changed a lightbulb in my house in two years. Not exaggerating.

Power strips kill phantom energy drain from devices that suck power even when turned off. Your TV, cable box, game console – they all draw power in standby mode. One switch on a power strip cuts them all off.

Time-of-use rates might benefit you if you can shift usage to off-peak hours. Run your dishwasher at night. Do laundry on weekends. Not for everyone, but worth checking if you have flexibility.

Columbus residents should combine Clean Energy Columbus with these efficiency measures for maximum savings. Stack the benefits.

Shop for supplier rates at least twice a year. Markets change. AEP's Price to Compare changes quarterly. Your locked-in rate from last year might not be competitive anymore. Use PUCO's Apples to Apples comparison tool regularly.