January 8, 2026
OEC Statement on AEP Rate Case Settlement
FOR IMMEDIATE RELEASE:
January 8, 2026
CONTACT:
Karlena Wallace, Communications Director
media@theoec.org 614-487-7506
OEC Statement on AEP Rate Case Settlement
COLUMBUS, OH —On January 7th, 2026, AEP Ohio filed a settlement agreement to resolve their pending rate increase request before the Public Utilities Commission of Ohio. The Ohio Environmental Council joins residential consumer advocates in opposing this settlement. The OEC rejects AEP Ohio’s characterization of the settlement as a rate decrease. This settlement does not contribute to an affordable, clean, and reliable energy system.
AEP Ohio uses “utility math” to mischaracterize this settlement as a rate decrease. The settlement borrows a credit already due to customers since 2024 from an outstanding PUCO case to appear as if they are reducing rates. Consumers already paid AEP Ohio more money in deferred income taxes than the Company actually needed, and AEP Ohio had to refund this money to Ohio consumers. In 2024, AEP Ohio discovered an additional $82 million in excess deferred income taxes paid by consumers and alerted the PUCO that this money was due back to customers. This credit, called the ADIT Rebate, was always due back to customers and was just pending PUCO approval in case 24-341-EL-ADR.
The ADIT rebate is being used to misrepresent the Settlement as a “rate decrease.” As noted in the stipulation, AEP Ohio’s rate is increasing, and AEP Ohio consolidated the tax refund from another case th
The following quote can be attributed, in whole or in part, to Karin Nordstrom, Clean Energy Attorney for the Ohio Environmental Council:
“This is simply not a rate decrease—AEP Ohio is using a rebate they were already required to pay, as well as creative utility accounting, to portray this settlement as a rate decrease. In reality, this settlement does little to improve affordability for consumers. Regulators cannot let AEP Ohio use “utility math” to portray costs incorrectly to customers.”
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The Ohio Environmental Council (OEC) protects the environment and health of all Ohio communities through legal and policy advocacy, decision-maker accountability, and civic engagement.
