COLUMBUS, OHIO – The Public Utilities Commission of Ohio (PUCO) adopted a settlement agreement authorizing AES Ohio to implement its electric security plan (ESP). The ESP will be in effect for 3 years beginning Sept. 1, 2023.
“The settlement we approve today will serve to improve the service quality and reliability of the grid across AES Ohio’s service territory,” stated PUCO Chair Jenifer French. “Incentivizing off-peak electric vehicle charging, economic development opportunities and customer and community assistance programs are exciting opportunities for Ohio consumers.”
Under the terms of the settlement, AES Ohio will continue to source electricity for its customers through a wholesale competitive bidding process.
AES Ohio is authorized to seek cost recovery for incremental capital investments to its distribution system each year during the term of the ESP. The amount eligible to be included in rates is capped each year, with amounts subject to reduction should the utility fail to meet annual system-wide electric reliability goals.
AES Ohio is required to file with the PUCO a detailed workplan for distribution system maintenance that will focus spending on where it will have the greatest impact on maintaining and improving service reliability and resiliency of the grid and promoting equity for low-income communities.
A home weatherization and bill payment assistance program will receive $3 million in funding annually, targeting low-income households otherwise ineligible for the federally funded Home Weatherization Assistance Program. AES Ohio will provide $2.7 million annually in the form of grants to municipalities within its service area for energy projects targeting low-income households.
New rates will be offered by AES Ohio to incentivize off-peak charging of electric vehicles, a green energy alternative tariff to offer customer-sited renewable energy resources, and economic development provisions aimed at new high-demand nonresidential customers making certain capital and job commitments.
The settlement approved by the Commission today was filed on April 10, 2023 by AES Ohio, PUCO’s technical staff, Ohio Energy Group, Ohio Manufacturer’s Association Energy Group, Kroger, University of Dayton, city of Dayton, Ohio Partners for Affordable Energy, Ohio Energy Leadership Council, IGS, Walmart, Ohio Hospital Association, ChargePoint, Armada Power, Constellation Energy Generation/Constellation NewEnergy, and the Retail Energy Supply Association.
The estimated bill impact from this ESP for a residential customer using 1,000 kilowatt hours (kWh) per month is a reduction of $2.71. However, AES Ohio will also implement a previously authorized distribution rate increase frozen during the pendency of this ESP. The net effect is an increase of $5.33 in monthly bills for a 1,000 kWh user.
A copy of the opinion and order is available on the PUCO website at PUCO.Ohio.gov by clicking on the link to Docketing Information System and searching case number 22-900-EL-SSO.