Ohio
Columbus City Council urges state to block AEP Ohio rate hikes
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- The Columbus City Council passed a resolution urging state regulators to block a proposed AEP Ohio rate increase.
- AEP Ohio claims its proposal will save customers money, but the Ohio Consumers’ Counsel estimates it will increase bills by about $30 per month.
- Councilmembers suggest large electricity users like data centers, not residents, should bear the cost of infrastructure investments.
- The Public Utilities Commission of Ohio is expected to make a final decision on the rate case later this winter or spring.
The Columbus City Council is encouraging state regulators to protect Columbus residents from rising electricity bills.
The council passed a ceremonial resolution 9-0 on Jan. 26 asking the Public Utilities Commission of Ohio to block American Electric Power Ohio’s request to raise its distribution rates in 2026 for its 1.5 million Ohio customers.
Columbus City Councilmember Christopher Wyche, chair of the council’s Public Utilities & Sustainability committee, told The Dispatch ahead of the meeting that he was bringing the resolution forward because affordability is quickly becoming the number one issue for residents. He said council is concerned because PUCO has recently approved multiple AEP Ohio rate increases.
“It is clear that we are facing not only a rising cost of living crisis, but also an urgent energy affordability crisis that will have serious impacts on Ohio residents,” Wyche said at the meeting.
This symbolic vote comes ahead of state regulators meeting this week to hear evidence in AEP Ohio’s case. The electricity distributor proposed a settlement in the case on Jan. 7 that it says will save customers money. But the Ohio Consumers’ Counsel, a state agency that advocates for consumers, says the proposal is riddled with “accounting gimmicks” to disguise a rate hike.
Customers’ electric bills will actually increase by about $30 more per month after tax credits and additional charges, or riders, are factored in, according to the Ohio Consumers’ Counsel.
AEP Ohio disputes the OCC’s assertions, saying its proposal will save customers $1.22 per month. But the electricity provider’s proposed rate decrease is only possible due to a credit it owes customers anyways, according to information the company sent to The Dispatch. Due to Accumulated Deferred Income Taxes, AEP Ohio owes customers $82 million. The credit is temporary and will run out in 18 months.
Wyche said the invited AEP Ohio representatives to speak at the City Council meeting but the utility declined. Speaking of its proposal, an AEP Ohio spokesperson previously told The Dispatch in an email:
“This is a good thing for AEP Ohio customers – it means all parties took concerns about affordability seriously. This settlement also allows AEP Ohio to invest in delivering reliable electricity safely, as well as make local infrastructure investments in local communities that drive economic development.”
Wyche told The Dispatch that increased strain on local electricity infrastructure is being driven by large users like data centers, adding that he’d like to see the burden placed on those businesses rather than residential customers. He said the state should require data centers to be built more sustainably so residents don’t foot the bill.
In the resolution, City Council urges PUCO to conduct a study on the impact of data centers on residential customers’ rates.
“A growing region needs to invest in its infrastructure, but longtime residents and working families shouldn’t shoulder that cost,” said Columbus City Council President Shannon G. Hardin in a statement released after the vote. “Runaway utility bills are pushing families to the brink, just to keep the lights on.”
The council’s action follows advocacy from the Ohio Environmental Council Action Fund and Columbus Stand Up. Columbus Stand Up has collected more than 2,500 signatures on its petition opposing rate hikes.
“AEP operates as an exploitive monopoly and without firm intervention, it will continue to extract resources from households, schools and public institutions across the state,” Columbus Stand Up co-founder Kwesi Low said at the meeting.
Because of the severe winter weather, the scheduled start of the PUCO evidentiary hearing was continued to Jan. 28, 2026, at 9:30 a.m. in Hearing Room 11-A at the offices of the commission, 180 E. Broad St., 11th Floor, Columbus. PUCO expects to make a decision in AEP Ohio’s case later this winter or spring, according to a spokesperson for PUCO.
Columbus Stand Up also moved its “Lights Out on AEP Rally” from Jan. 27 to Jan. 28 at noon at PUCO headquarters.
The city council meeting on Jan. 26 was held virtually due to winter storm Fern’s lingering impact. The budget hearing scheduled for Jan. 27 will also be held virtually due to the weather.
Government and politics reporter Jordan Laird can be reached at jlaird@dispatch.com. Follow her on X, Instagram and Bluesky at @LairdWrites.