AEP

State energy regulators are looking over a new plan, proposed by AEP, that would allow the utility company to increase rates on customer electric bills. 

AEP is asking to increase a certain line item on electric bills by 120%. That "customer charge" would go up about $10 more a month. Rachel Belz with the advocacy group Ohio Citizen Action notes AEP just tried and failed to raise rates to help its struggling coal plants.

“They just keep reaching right into the pockets of their residential customers.”

Ohioans could see a new charge in their electric bills as early as June, now that state regulators have approved plans by FirstEnergy and AEP to guarantee income for struggling coal plants. But while opponents are fighting the ruling, those utilities are touting the benefits.

Groups against the so-called coal plant bailout say the ruling from the Public Utilities Commission of Ohio gives AEP and FirstEnergy an unfair competitive advantage.

But AEP President, Pablo Vegas, says his utility needed the ability to charge customers more in order to stabilize costs.

Regulators have approved a pair of deals that allow FirstEnergy and AEP to impose short-term rate increases on electricity customers in Ohio to subsidize some older coal-fired and nuclear power plants.

The Public Utilities Commission of Ohio unanimously passed the power purchase agreements for Akron-based FirstEnergy and Columbus-based AEP Thursday. Opponents are likely to challenge the decisions.

The companies submitted the latest versions of their plans to the commission in December.

Independent energy provider Dynegy's entrance into the the crowded Ohio energy market could affect competitors plans to raise rates. 

AEP and First Energy have asked state regulators to allow them to hike customers' bills to ensure energy production and guarantee income for their struggling coal plants through 2030. 

Texas-based Dynegy recently bought several coal and natural gas plants from Duke Energy. Now, the company says it can counter plans from AEP and FirstEnergy by offering the same amount of energy for $5 billion less.

Who should be paying to keep power plants afloat that are inefficient and don’t do very well in the market—the utility company or its customers?

That's the question under hot debate in Columbus as major utility AEP fights to keep several of its coal plants open through 2030.