AEP Transmission Rates Set to Increase Again

Electric transmission costs for AEP Ohio customers continue to go up. AEP Ohio filed its new rates for the Basic Transmission Cost Rider (BTCR), set to take effect next month. Primary service customers will see a 10% increase, while secondary customers an increase of 22% and sub-transmission and transmission customers will see a whopping 25% hike. (The BTCR is listed as the “transmission” line item on AEP Ohio electric customer bills.)

BTCR pilot tariff customers will see a 43% to 54% hike, but they have the ability to manage their peak transmission load to mitigate the increase. BTCR pilot rates could have been higher. For example, AEP Ohio had requested a 164% year-over-year increase on primary service customers. The OMA Energy Group (OMAEG) intervened to mitigate these cost increases.

Underlying the rate increase is AEP’s rising cost of transmission, now 254% of its 2015 cost — and five times higher than neighboring AES Ohio (formerly DP&L). The OMAEG has worked to protect manufacturers through the BTCR pilot, which allows manufacturers to manage their transmission costs through peak-load management strategies like on-site generation, load curtailment, and off-peak hour production. Contact the OMA’s Rob Brundrett to learn how the OMAEG works to protect manufacturers. 3/25/2021