What is Capacity and Why It Matters
Electricity prices are expected to rise across the PJM region this summer, primarily due to an increase in capacity costs, which is the second largest component of your electric supply rate. This cost encourages electric generators to produce enough power and deliver the required resources for sufficient electricity supply during peak periods.
PJM, the regional grid operator who organizes the movement of electricity through thirteen states (including Ohio), holds an annual capacity auction. In this auction, electric generation power plants commit to provide power in the future, and PJM ensures there is enough electricity available to meet demand. The most recent auction saw a significant capacity price increase due to growing demand and limited supply of generation capacity.
How This Affects Your Bill
Come June 1st, 2025, this rise in capacity costs will translate to about a 20% increase when it comes to your electricity bill. For example, the Public Utilities Commission of Ohio (PUCO) has confirmed that AEP Ohio’s Standard Choice Offer is expected to rise by 35% this summer, reaching roughly $0.10/kWh.
How Clean Energy Columbus is Helping
In response to these rising costs, Clean Energy Columbus (CEC) has locked in a rate of $0.09080/kWh for the fifth year of our program. This rate is fixed for 12 months and will run from June 2025 to June 2026. With this new rate in place, CEC members can expect savings of around $10.00 per month compared to AEP.
To date, CEC has provided residents with a cost competitive, 100% clean energy aggregation program. Over 200,000 households currently participate in the Clean Energy Columbus program and have a combined savings of over $13 million for the ‘24/’25 program year. CEC has provided over $55 million in savings over the life of the program.
Though rates are increasing for everyone across the board, no matter who your electricity supplier, CEC’s new rate will remain competitive versus AEP’s Standard Choice Offer, achieving our goal of always ensuring the City’s residents receive the best value program possible.
Enroll Today
Interest in joining? You can sign up anytime here or call AEP Energy at 1-888-307-0244 to check eligibility and enroll. Take the first step towards a sustainable future!