AEP Ohio SSO rate rises June 1, lifting summer electric bills

By AI, Created 8:30 PM UTC, May 20, 2026, /AGP/ – AEP Ohio customers on the utility’s default Standard Service Offer will see a rate increase on June 1, with analysts warning summer cooling demand could push average bills to about $181 and, in some cases, above $200. The change reflects higher PJM capacity costs and comes as Ohio households look for cheaper retail power options.

Why it matters: - AEP Ohio customers on the default electricity rate are set to pay more just as summer air-conditioning demand rises. - Analysts at OHEnergyRatings.com say the higher rate could add meaningful pressure to household budgets during Ohio’s hottest months. - The new pricing comes amid broader increases tied to PJM capacity market costs and tighter power supply conditions.

What happened: - AEP Ohio’s Standard Service Offer increases on June 1. - The default residential rate will rise to 10.167 cents per kWh from 9.94 cents per kWh. - The new rate stays in place through May 31, 2027. - OHEnergyRatings.com says the change amounts to a little over 2% more for electricity. - The same analysis projects an average summer bill close to $200 for some default-rate customers.

The details: - PJM capacity auction prices last summer were 22% higher than the 2024 rate of $269.92 per megawatt-day. - Prices for 2026 could have exceeded $500 per megawatt-day, but the auction was capped at $329.17. - PJM runs the electric grid and power markets for 13 states, including Ohio. - PJM holds annual capacity auctions to secure generators for peak-demand periods. - The grid operator is dealing with a supply shortage tied to fossil fuel plant retirements, a backlog of new generators in the interconnection queue, and high demand from new data centers. - July 2025 was the hottest month in Ohio, with muggy nights and hot daytime temperatures lasting 20 days in much of the state. - Average residential electricity use in July reached 1,230 kWh last year. - Energy analysts at OHEnergyRatings.com say customers could again use 1,230 kWh during a July heat wave this summer. - At that usage level, average bills would come to $181.00. - Some customers could go well over $200. - Find the full article.

Between the lines: - The rate change highlights how wholesale power market costs can flow directly into retail bills for customers who stay on utility default service. - Ohio’s deregulated market gives residential customers a chance to compare retail plans against AEP Ohio’s new price-to-compare rate before the June 1 change. - Karl Trollinger, CEO of Electricity Ratings, said working families are facing frustrating electricity prices and can look to retail providers when the utility’s default rate is not the best option.

What’s next: - AEP Ohio customers can compare retail electricity offers against the new SSO rate before June 1. - The higher rate will continue through spring 2027 unless the market or utility pricing changes again. - Summer demand will determine how many households see bills move from higher rates to higher actual monthly totals.

The bottom line: - Higher PJM costs are set to make Ohio’s summer electricity bills more expensive, and AEP Ohio customers on the default rate may find savings by shopping the retail market.