Another budget-breaking rate increase is likely on the way. Greedy AEP must be reined in.
Morgan Harper is co-founder of Columbus Stand Up and a member of the Stop AEP Rate Hikes coalition. Selah Goodson Bell is a campaigner with the Center for Biological Diversity’s energy justice program.
As Ohio endures climate change-fueled storms and unexpected power outages, it’s worth asking who’s looking out for people struggling to stay warm and pay skyrocketing utility bills.
Recent history suggests that neither AEP Ohio nor the Public Utilities Commission of Ohio are upholding their obligations to serve the public interest.
AEP Ohio cut life-saving power to its customers tens of thousands of times last year. Adding insult to injury, AEP customers who could afford to pay their bills saw the utility jack up rates by about 28% as the hottest summer on record got underway.
Yet another AEP rate hike will likely take effect in June.
Given these regular rate increases, and the millions AEP spends on stock buybacks and dividends for its shareholders, it might surprise ratepayers to know that this for-profit utility is required under its state charter to act in the public’s best interest.
Ohioans unprotected after biggest corruption scandal in state history
Similarly, state law requires that the commission regulate public utilities and, according to its own mission, it should be protecting customers’ access to “adequate, safe and reliable utility services at fair prices.”
Yet even in the aftermath of the biggest public corruption scandal in state history, the commission and Ohio lawmakers have done little to protect consumers, prevent public corruption and fulfill their community-focused missions.
OpinionAEP's increases would make families pick between keeping the lights on and eating
But there is hope.
Three bills under consideration this session would rein in utility greed, reduce deadly utility shutoffs, begin prioritizing the needs of energy-insecure households and help restore the state’s reputation in the wake of the First Energy bribery scheme.
What should be done to protect Ohioans from greedy utility companies
The Ohio legislature should pass these bills and distinguish itself as a model for other states.
Senate Bill 149 would prevent utilities from forcing ratepayers to bankroll their lobbying expenses and require detailed disclosures of their political expenditures. This would complement national efforts to protect ratepayers. In 2021 the Center for Biological Diversity petitioned the Federal Energy Regulatory Commission to implement this rule nationwide. States like Colorado, Connecticut and Maine have since enacted their own versions, and California lawmakers are considering a similar bill.
In 2022 the Center petitioned the Federal Trade Commission to investigate the myriad anti- competitive and deceptive strategies that utility companies deploy to block distributed solar, enrich their shareholders and safeguard their monopoly power. Nationally millions of dollars are funneled from utility customers to anti-environment trade groups that threaten the climate and clean energy development.
Senate Bill 150 would increase electric and gas utility shutoff protections for households with low- income residents, children under 5, adults over 65, and people who are disabled, ill or pregnant.
It would require utility companies to disclose shutoff data every quarter rather than annually. Utilities would be financially responsible for providing service to the newly protected households and prevented from recouping these costs from other customers.
Senate Bill 151 would repeal the bailout of two 1950s-era coal plants — subsidies lawmakers approved in House Bill 6, the 2019 law at the heart of Ohio’s corruption scandal. This would save ratepayers millions of dollars.
These are commonsense reforms. First Energy’s epic racketeering conspiracy — aided by convicted felon and former House Speaker Larry Householder and at the expense of Ohio utility customers — shows these reforms are desperately needed.
Not surprisingly, Republicans and utility companies are trying to prevent these bills from becoming law.
Everyday Ohioans have the most to lose if Republican members of the House Energy and Public Utilities Committee keep stonewalling these bills.
Researchers in Ohio have found that energy rates and fuel riders disproportionately burden Black, Hispanic and Latino residents, who are more likely to be low income and live in homes that are costlier to keep warm and cool.
In 2022 AEP Ohio disconnected residential customers for non-payment more than 145,000 times — by far the most of any Ohio utility. About 1.2% of the roughly $1.6 billion AEP spent on shareholder dividends that year could have covered the cost to prevent every shutoff.
No one should have to choose between putting food on the table and keeping the power on, but volatile energy prices and climate change-fueled extreme weather mean more families than ever are forced to make such choices.
Ohio lawmakers have an opportunity to stand up to utility company monopolies and lower energy costs for millions of people. Or they can continue to let utility executives and shareholders rake in inordinate profits at the expense of hard-working Ohioans.
Morgan Harper is co-founder of Columbus Stand Up and a member of the Stop AEP Rate Hikes coalition. Selah Goodson Bell is a campaigner with the Center for Biological Diversity’s energy justice program.