AEP Ohio customers to receive millions in bill credits and rate reductions from settlement
AEP Ohio has filed a settlement that would give customers over $600 million in customer benefits from tax savings.
The electric company says the settlement was filed with the Public Utilities Commission of Ohio (PUCO). The settlement outlines $607 million in customer benefits from tax savings created by the Tax Cuts and Jobs Act.
AEP Ohio says the agreement was signed by the Ohio Consumers’ Counsel, PUCO staff, and several groups representing industrial and commercial customers have signed onto the agreement.
“Since Congress passed the Tax Cuts and Jobs Act, AEP Ohio has been committed to seeing that our customers benefit from these savings. This settlement provides customers with $263 million in immediate rate reductions.” said Julie Sloat, AEP Ohio president and chief operating officer. “The collaborative effort of these groups to work through this complex issue was critical to arriving at a beneficial outcome for our customers.”
Bill credits that total $263 million will begin following the PUCO’s approval of the settlement and will continue for the next 6 years, said AEP Ohio. The electric company says these savings are in addition to $66 million in tax reductions that have been reflected in customer bills since January.
Over the next 20 years, AEP Ohio says an additional $278 million will be credited through the Distribution Investment Rider. AEP Ohio says that allows the company to continue making distribution system upgrades, build a smarter energy grid and provide more reliable service to its customers.
As for practical numbers, a residential customer using 1,000 kilowatt-hours of electricity can expect a total bill reduction of $3.65 per month, said AEP Ohio.
AEP Ohio says the settlement addresses the company's responsibilities under the PUCO’s order for utility companies across the state to provide customers with benefits from tax savings under the Tax Cuts and Jobs Act passed by Congress in 2017.