AEP Electric Rates

AEP Ohio

AEP Ohio recently filed an Electric Security Plan (ESP) stipulation with the Public Utilities Commission of Ohio on September 6, 2023, that continues our commitment to improving reliability, fostering innovation, and offering programs to help customers reduce energy usage and save money. The plan would invest more than $1.5 billion in our distribution grid over the four-year ESP term beginning in June 2024.

AEP Texas

There was a rate increase on the transmission charge or TCRF for billings on or after September 1, 2023. This increase applies only to the transmission charge. The TCRF increase was due to increased wholesale transmission rates/expenses.

Appalachian Power (APCO)

On December 27th, 2023, Appalachian Power, along with Wheeling Power, filed a settlement agreement with the Public Service Commission of West Virginia (PSC) that addresses the companies' Expanded Net Energy Cost (ENEC) cases. More information on this filing can be found here: Appalachian Power seeks approval of settlement agreement in fuel cost cases

On September 13, 2023, the Public Service Commission of West Virginia (PSC) issued an order approving an $88.8 million rate increase, effective immediately, for the portion of the 2023 Expanded Net Energy Cost (ENEC) request intended to bring fuel cost and revenue in alignment.

• The order does not address the accumulated ENEC under-recovery balance of nearly $553 million from the three open ENEC cases (2021, 2022, and 2023).
• All three ENEC cases remain open until the PSC issues final orders.
• In our April 28, 2023, ENEC case filing, we proposed a securitization option to address under-recovery amounts and mitigate any rate impacts. If adopted as proposed, that option is expected to have minimal or no rate impact beyond the $88.8 million ENEC revenue adjustment ordered on September 13.
• The anticipated impacts of the recent ENEC increase per Tariff Rate in APCO WV, effective September 13th, 2023, is between 4-7%.

Earlier this year, Appalachian Power petitioned the Virginia State Corporation Commission to increase the Transmission Rate Adjustment Clause (T-RAC) from $368 million to $413 million, a $45 million increase. The T-RAC is the portion of a customer's bill that recovers transmission services, fees, and new construction costs.

Appalachian Power and Wheeling Power filed a request in October 2023 with the Public Service Commission of West Virginia (PSC) to update current rates for the Environmental Compliance Surcharge (ECS). The $37.2m ECS would provide for the recovery of equipment and installation costs associated with complying with the U.S. Environmental Protection Agency (EPA) rules on Coal Combustion Residuals (CCR) and Effluent Limitation Guidelines (ELG).

Indiana Michigan Power (I&M)

On December 27, 2023, the Indiana Utility Regulatory Commission (IURC) approved I&M's Electric Vehicle Fast Charging (EVFC) tariff and an EVFC rate. The order sets an EVFC rate for customers that utilize Company owned EV fast-chargers that are available for public use. The tariff rate is calculated using a regional average of EVFC rates offered by individual fast charge stations in I&M's service territory that charge a consumption-based or time-based fee. I&M's Original Sheet No. 20 Tariff EVFC is effective for customer bills rendered with the 1st billing cycle in February 2024 (January 31, 2024).

The revised tariff sheets are attached and are also available at: Indiana (indianamichiganpower.com)

On December 21, 2023, I&M and organizations representing I&M customers have reached agreement on details of the Powering Our Future plan that will further enhance reliability and better serve customers while significantly reducing the initial proposed rates. The settlement with the Indiana Office of Utility Consumer Counselor (OUCC) and other organizations and municipalities is pending before the Indiana Utility Regulatory Commission (IURC). Under the settlement, I&M's overall rate request of $116.4 million was reduced to $56.9 million plus $4.9 million in rider revenues, totaling $61.8 million. For more information, please visit: I&M Reaches Settlement Agreement on Powering Our Future Plan (indianamichiganpower.com)

The I&M-Indiana Tariff Book has been updated as of 1/2/2024, to include recently approved items by the Indiana Utility Regulatory Commission (IURC) and are effective for customer bills with the 1st billing cycle in January 2024.

• Demand-Side Management / Energy Efficiency Program Cost Rider, Fourth Revised Sheet No. 45
  • On December 20, 2023, the IURC approved I&M's updated DSM/EE Plan and an adjustment to its DSM/EE rider factors. The DSM/EE surcharge allows the Company to recover costs of energy efficiency programs as approved by the Commission.
• Environmental Cost Rider (ECR), Third Revised Sheet No. 47
  • On September 27, 2023, the IURC approved revised Environmental Cost Rider (ECR) factors. Third Revised Tariff Sheet No. 47 (Environmental Cost Rider) has been revised to reflect the approved factors.
• Off System Sales Margin Sharing / PJM Cost Rider, Fourth Revised Sheet No. 48
  • On December 27, 2023 the IURC approved I&M's updated OSS/PJM Cost Rider factors.

The I&M-Michigan Tariff Book has been updated as of 1/2/2024, to include the following items:

• Power Supply Cost Recovery Factor (PSCR)
  • I&M's Michigan Tariff Book has been updated to reflect a 2024 proposed PSCR Plan case factor of 11.44 mills per kWh applicable to customer's bills to be effective during the billing months of January through December 2024, unless later modified by the MPSC.
  • This factor represents an increase of 6.36 mills per kWh, compared to 5.08 mills per kWh factor currently in effect. The modified tariff sheet, D‐116.00 can be found in the rates link below.
• Energy Waste Reduction (EWR) Surcharge Rider:
  • On September 28, 2023, the MPSC approved Indiana Michigan Power Company's EWR reconciliation and approved revised EWR surcharge rates effective for bills rendered during the billing month of January 2024 (January 2, 2024).

The Fuel Cost Adjustment Rider was revised to reflect the November 2023 through April 2024 fuel adjustment clause factor of ($0.000185)/kWh under the IURC's Order issued on October 25, 2023, in Cause No. 38702-FAC 91. This factor is effective with the first billing cycle in November (October 27, 2023).

Kentucky Power

An order was issued by the Public Service Commission on January 19, 2024, which approved a partial rate increase in the Kentucky Power rate case (2023-00159). Kentucky Power was granted an Order by the Kentucky PSC on January 10 for the securitization portion of their pending rate case. Securitization is beneficial for customers since it spreads approved costs over a more extended period and at lower financing costs. The process of securitization takes a few months to implement, and customers will not see the new securitization financing line item on their bill until later in the year. The expected impact from the recent Kentucky rate case, effective for billing on and after January 24, 2024, is a 12-13% increase.

Public Service Company of Oklahoma (PSO)

Recovery of February 2021 storm costs through a rider will cause customers to see an increase of approximately 2% - 3% spread over 20 years.

On November 3, the Oklahoma Corporation Commission (OCC) approved new rates for PSO customers. The new rates are effective with the first billing cycles in January 2024 and replace interim rates that began May 22, 2023. New fuel factors announced in November 2023 are also effective with January 2024 billing. PSO national customers can expect a combined billing reduction estimated at 13-19% beginning in January 2024.

The Oklahoma Corporation Commission (OCC) approved the Public Service Company of Oklahoma's (PSO) Fuel-Free Power Plan (FFPP), allowing PSO to add 995.5 megawatts of energy to its generation mix on May 5, 2023. As a result, PSO customers will see their monthly bills go down starting in early 2026.

Southwestern Electric Power Company (SWEPCO)

SWEPCO filed an adjustment to the Energy Cost Recovery (ECR) rate in March with the Arkansas Public Service Commission (APSC) that will reduce the fuel factor rate by approximately $0.03/kWh. This filing was approved and is effective for the first billing cycle of April 2023.

In September 2023, the Louisiana Public Service Commission (LPSC) approved SWEPCO's request to complete its Advanced Metering System deployment plan. The LPSC approved an AMS surcharge for customers that is effective beginning on September 28, 2023. The monthly surcharge for commercial and industrial rate classes is $6.40 and expires after four years. Deployment of smart meters will continue across the state through 2025.