AES Ohio Electricity Rate Increases - Price to Compare
Why is my AES Ohio Electric Bill So High?
All across the nation, energy prices have gone up, and AES Ohio’s electricity rate increases continue. According to AES, the rate was determined by a third party auction with oversight by the Public Utility Commission of Ohio. The increase was affected by a number of factors including the war in Ukraine, inflation and the price of natural gas.
Rewind to June 1, 2022, when PUCO (Public Utilities Commission of Ohio) approved a rate hike for energy, increasing the default rate for customers that are receiving energy through their local utility. Those especially hit hard were AES-Ohio (DP&L), which saw a whopping increase of 120% above their previous default rate.
If you are under the AES Ohio utility, we have actual data that shows your bill has gone up about 120% for your rate per kWh over the past couple of months.
Watch the video for more info.
From EnergyChoiceMatters:
The Public Utilities Commission of Ohio has approved results from an April procurement of Standard Service Offer supplies at Dayton Power & Light (AES Ohio.)
The SSO auction procured 50 tranches of supply for the period June 1, 2022 to May 31, 2023 at a tranche-weighted average price of winning bids of $122.50 per MWh.
The starting price range for the auction had been $85.00 to $105.00 per MWh (there was a sealed bid round.)
For comparison, a March auction had procured 50 tranches of SSO supply for the period June 1, 2022 - May 31, 2023 at a tranche-weighted average price of winning bids of $75.13 per MWh.
Notably, the March auction had been scheduled to procure 100 tranches (100% of supply), but, shortly after the auction commenced, the tranche target was reduced from 100 tranches to 50 tranches, based on predetermined criteria and consistent with auction rules and procedures.
During the PUCO meeting, Commissioner Daniel Conway criticized FERC, stating that delays in various PJM capacity auctions, due to FERC, have "compromised" the ability of the PUCO to stagger standard service offer contracts and procurements as a risk mitigation measure. Conway said FERC's actions, or inactions, have "adversely materially" affected the ability to spread out the procurement dates and has compressed the term lengths of the supply contracts, leaving procurements vulnerable to transient market and global issues, such as the case in the instant procurement.
Commissioner Lawrence Friedeman took the opportunity during the meeting to remind customers that there are alternatives to default service, including competitive supplier offers that may provide relief and/or greater value, and aggregation.
What can I do to lower my AES Ohio Bill?
Those especially hit hard by the AES Ohio rate hikes, saw a whopping increase of 120% above their previous default rate. Our HERA analysis takes these new default rate hikes and makes predictions based off of a customer's historical usage. With that data, we can compare the new default rate with rates we are receiving from our suppliers to see if locking in with a supplier makes sense. We calculate the projected savings/premiums, which our customers can use to plan for their future.
We can answer the following scenarios based off of our research:
- This scenario answers the question, how much more can I expect to pay looking at the default rate increase only?
- This scenario answers, how much will I save by locking in at the 36 month option from the new default rate?
- This scenario answers, how much will I save by locking in at the 48 month option from the new default rate?
- This scenario answers, how much will I save by locking in at the 60 month option from the new default rate?
- If I lock in at the 48 month, how much more will I be paying than the current default rate that's going to expire.
- If I lock in at the 60 month, how much more will I be paying than the current default rate that's going to expire.
See below for examples based on one of our Hotel clients in Dayton:
For more information on how to prevent these rate increases, and start saving in Dayton, Fairborn, Miamisburg, and other areas,
contact us sooner than later!
Update: 9/26/22 - AES Files For Default Service Procurement Plan That Would "Protect Customers From Volatile Market-Driven Cost Impacts
AES PRESS RELEASE: Today, AES Ohio, a subsidiary of The AES Corporation ( NYSE: AES), filed its latest Electric Security Plan (ESP) with the Public Utilities Commission of Ohio (PUCO).
The company's ESP is a comprehensive plan to enhance and upgrade its network and improve service reliability, provide greater safeguards for price stability and continue investments in local economic development. AES Ohio intends to increase investments in the distribution infrastructure and deploy a proactive vegetation management program.
"We understand, first and foremost, our customers want reliable service while maintaining affordable rates," said AES Ohio President and Chief Executive Officer Kristina Lund. "With the lowest distribution rates in Ohio, this plan provides a mechanism to strengthen reliability well into the future and protect our customers from volatile market-driven cost impacts."
If approved as proposed, the initial impact for an AES Ohio residential customer using 750 kilowatt hours per month would be less than $1.00.
Beyond the various requirements of the ESP, AES Ohio is proposing new and innovative programs to help customers save money while meeting their ever-changing energy needs driven by new smart technologies. The plan has energy efficiency programs for residential and low-income customers, which include ways to save by utilizing smart thermostat technology.
Lastly, the plan includes new pricing incentives to promote the growth and expansion of companies in the region, helping to foster a strong local job market.
"AES Ohio remains committed to providing reliable energy at competitive prices, while investing and supporting the communities where we live and work," Lund said. "This plan is thoughtfully designed to best serve our customers, reaffirms our commitment to the community and accelerates the future of energy."
