Price to compare changes coming this summer

During the April 3rd commission meeting, PUCO staff presented information on recent changes to the standard service offer, which is the default electricity price for customers of Ohio's utilities.

Starting June 2024, energy prices should decrease for most Ohio consumers.

Customers can use the price to compare, printed on their monthly utility bill, when comparing electricity rates from competitive suppliers to know if switching suppliers will help them save money or not.

More information is available here.

Understanding electricity transmission and costs

Your electric bill consists of three parts: generation, transmission and distribution. Transmission is the movement of electricity across the region, either through metal towers or underground lines. 

In this month's News Bureau, we're breaking down where transmission costs come from, how they're calculated and why you might see changes on your bill.

Learn more about transmission costs here.

PUCO authorizes AEP Ohio electric security plan

The PUCO has approved a settlement agreement authorizing AEP Ohio to implement a 4-year electric security plan (ESP), beginning June 1, 2024.

“The settlement we approve today, supported by a wide range of consumer, business, and environmental organizations, will serve to improve the service quality and reliability of the grid across AEP Ohio’s service territory and will reduce costs for AEP SSO customers,” stated PUCO Chair Jenifer French. “Incentivizing off-peak electric vehicle charging, smart thermostat programs, and customer and community assistance programs are exciting opportunities for Ohio consumers.”

A residential customer using 1,000 kWh enrolled in AEP Ohio’s standard service offer will experience a total monthly bill reduction of approximately $30 due to falling prices for electricity. 

Details about the electric security plan are available here.

April Commission actions

Northeast Ohio Natural Gas to serve L-H Battery Company facility

The PUCO has approved an arrangement between Northeast Ohio Natural Gas Corporation and L-H Battery Company, a joint venture between LG Energy Solution and Honda Motor Co., to support a new battery facility in Jeffersonville, Ohio.

L-H Battery is investing $3.5 billion to construct a battery plant to produce lithium-ion batteries in Jeffersonville, Ohio to power Honda and Acura EV models for the North American market, with an overall investment projected to reach $4.4 billion and the creation of 2,200 jobs.

More information available here.

PUCO authorizes settlement agreement for Northeast Ohio Natural Gas rate case

The PUCO has adopted an unopposed settlement agreement setting new rates for natural gas distribution service for Northeast Ohio Natural Gas. A residential customer using 10 thousand cubic feet of natural gas per month will experience an increase of $2.67 - $4.70 in their monthly bill. 

Read more about the settlement here.

PUCO adopts settlements resolving retail supplier violations for Direct Energy Services, Xoom Energy Ohio

The PUCO has accepted two separate settlement agreements resolving alleged violations of retail energy supplier regulations for Direct Energy Services, LLC and Xoom Energy Ohio, LLC. 

The suppliers will pay civil forfeitures to the state of Ohio, make contributions to a nonprofit providing bill payment assistance and change future marketing and enrollment practices.

More information available here.

PUCO authorizes JSW Steel, AEP Ohio electricity agreement

The PUCO has authorized a rate agreement between JSW Steel and AEP Ohio.  

JSW Steel will continue to participate in AEP Ohio’s interruptible program in which it agrees to curtail up to 120 megawatts of electric load at its Mingo Junction, Ohio facility during periods of peak demand on the electric grid.

JSW Steel currently employs 279 full-time employees, and 50 full-time employee equivalent contractors. The steel company is planning a $160 million expansion that is expected to add 26 new full time jobs. The plant expansion is currently planned for 2026. 

Read more about the agreement here.

New residential solar energy program for underserved Ohio communities

The Ohio Air Quality Development Authority (OAQDA) and Ohio Environmental Protection Agency (Ohio EPA) announced that they will partner to administer a $156 million program to expand the use of renewable solar energy in traditionally underserved Ohio communities.

As part of the new program, the agencies will provide grants and low-cost financing for residential and community solar energy projects in disadvantaged areas of Ohio, ultimately lowering electricity bills in low- to moderate-income households. The initiative also will contribute to Ohio's thriving economy by creating the workforce needed to deploy these solar energy systems across the state.

More information about this program is available here.