GAHANNA, Ohio, Sept. 27, 2018 /PRNewswire/ -- AEP Ohio has filed a settlement with the Public Utilities Commission of Ohio (PUCO) that outlines $607 million in customer benefits from the tax savings created by the Tax Cuts and Jobs Act. AEP Ohio, the Ohio Consumers' Counsel, PUCO staff, and several groups representing industrial and commercial customers have signed onto the agreement.
"Since Congress passed the Tax Cuts and Jobs Act, AEP Ohio has been committed to seeing that our customers benefit from these savings. This settlement provides customers with $263 million in immediate rate reductions," said Julie Sloat, AEP Ohio president and chief operating officer. "The collaborative effort of these groups to work through this complex issue was critical to arriving at a beneficial outcome for our customers."
Bill credits totaling $263 million will begin following the PUCO's approval of the settlement and will continue for the next 6 years. These savings are in addition to $66 million in tax reductions that have been reflected in customer bills since January.
An additional $278 million will be credited over the next 20 years through the Distribution Investment Rider, which allows AEP Ohio to continue making distribution system upgrades, building a smarter energy grid and providing more reliable service to its customers.
A residential customer using 1,000 kilowatt-hours of electricity can expect a total bill reduction of $3.65 per month.
This settlement addresses AEP Ohio's responsibilities under the PUCO's order for utility companies across the state to provide customers with benefits from tax savings under the Tax Cuts and Jobs Act passed by Congress in 2017. The stipulation is available on the PUCO's website.
About AEP Ohio AEP Ohio delivers electricity to nearly 1.5 million customers of AEP's subsidiary Ohio Power Co. in Ohio. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power. News and information about AEP Ohio can be found at AEPOhio.com.
American Electric Power (NYSE: AEP), based in Columbus, Ohio, is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions to our customers. AEP's more than 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 219,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.4 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 32,000 megawatts of diverse generating capacity, including 4,300 megawatts of renewable energy. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP also owns AEP Energy, AEP Energy Partners, AEP OnSite Partners and AEP Renewables, which provide innovative competitive energy solutions nationwide.