AEP Ohio Proposes to Decrease Electric Rates for Customers in Settlement

GAHANNA, Ohio (January 7, 2026) — AEP Ohio today filed an agreement at the Public Utilities Commission of Ohio (PUCO) to decrease electricity distribution rates for its customers. The settlement, which must be approved by the PUCO, would decrease distribution rates by $58.7 million overall. The average AEP Ohio residential customer using 1,000 kilowatt-hours (kWh) per month would see their electric distribution bill drop by $1.22 per month.

“AEP Ohio cares about our customers and their communities — we live in these communities, too — and we know affordability is the No. 1 issue our customers are dealing with right now,” said Marc Reitter, AEP Ohio president and chief operating officer. “This settlement balances the need to invest in electric distribution infrastructure to provide reliable electricity with the need to keep electric rates as low as possible.” 

In addition to lowering the distribution rate, this settlement benefits customers by facilitating infrastructure investments. Under the terms of the settlement, AEP Ohio will:

• Replace vital equipment like poles, wires and transformers.
• Add protective layers to electrical equipment that reduce outages.
• Respond to growth, severe weather and other factors that increase demands on the local electric grid.

All AEP Ohio rates must be approved by the PUCO before customers see any changes to their electric bills. The PUCO will conduct a hearing about the settlement in the first quarter of 2026. The commission will then make a final decision in the case and rates will go into effect 14 days later.

Customers’ electric bills are comprised of three primary components: distribution charges, which pay for investments in local community infrastructure; transmission charges, which pay for investments in extra-high voltage lines that move electricity across large distances; and generation charges, which pay for the generation of electricity — power plants, solar farms and others. AEP Ohio is a distribution utility, and the settlement filed today would apply to the distribution portion of customers’ bills.

For more information, visit AEPOhio.com/BaseCase. 

###

About AEP Ohio

AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power. AEP Ohio provides electricity to 1.5 million customers across 61 counties. News and information about AEP Ohio can be found at AEPOhio.com.

American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We expect to invest $72 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 17,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 30,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.