Settlement reached in AES Ohio rate increase: What to know

DAYTON, Ohio (WDTN) — AES Ohio is raising rates, but a settlement was reached to lower the percentage.

AES Ohio announced Wednesday afternoon that they will be not be going forward with a 14 percent increase on rates, after a settlement knocked the number down to nine percent.

Instead of customer’s bills going up an average of $21 per month, customers can expect the rate to be around $15 per month instead.

AES Ohio and other interested parties have been negotiating the rate increase for weeks, finally reaching an agreement to raise rates, but at a lower rate than initially proposed.

AES Ohio argues this increase will help pay for upgrades already made to delivery infrastructure, as well as repairs due to past and future storm damage.

“Over the last four years, we’ve had six major weather events,” said Mary Ann Kabel, AES Ohio communications director. “The negotiations that happened for several weeks, we are down to nine percent.”

Also in the settlement is an additional $1 million to AES Ohio’s Gift of Power fund, which assists customers that are having trouble paying their bills.

The settlement happened between the Public Utilities Commission of Ohio, AES Ohio, AES customers and the Ohio Consumers’ Counsel.

The OCC is a state-run agency in charge of regulating the rates of public utilities. They have been working with PUCO and AES for weeks, saying they finally reached an agreement they feel is fair.

“I would consider this a win for consumers definitely,” said JP Blackwood, OCC public affairs liaison. “One of the things we negotiated was that the rate of return that AES was asking for was too high.”

The settlement also includes no reconnection fees, no electric vehicle cost shifting and a fairer review of transmission costs.

“We feel like this settlement was really a good deal for consumers,” said Blackwood. “We’re not going to sign on to a settlement unless we think it’s the best deal consumers are going to get.”

Before new rates can go into effect, the settlement is still required to be put before a five-person commission with PUCO. Thursday’s public hearing will be held at 6 p.m. in Dayton’s City Hall.

You can also submit comments online at occ.ohio.gov.

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