AES Ohio Rate Case Settlement: Bill Impact and Next Filing

The Public Utilities Commission of Ohio approved the AES Ohio rate case settlement on November 5, 2025, authorizing a $168 million annual increase in base distribution rates that took effect the following day. For a typical residential customer using 1,000 kilowatt-hours a month, the bill goes up roughly 9%.¹²

The case, docketed as No. 24-1009-EL-AIR, covers infrastructure the utility built between 2020 and 2024 across its 24-county West Central Ohio territory. AES Ohio serves more than 527,000 customer accounts.³ The company originally asked for $235 million. The Ohio Consumers’ Counsel said that figure would have added about $21.75 a month, or roughly $261 a year, to a typical residential bill.⁴ The settlement filed August 13, 2025 pulled that number down by $67 million before it reached the commission.

What Changes on a Residential Bill

The 9% headline number is the net effect after several moving pieces settle out. A few concrete changes matter most to residential customers:

The fixed monthly customer charge stays at $9.75.⁵
Reconnection fees are eliminated.⁵
Residential energy charges rise 72.4%.⁶
AES Ohio commits more than $1 million a year in shareholder-funded bill assistance through its Gift of Power program.²

The gap between a 72.4% energy-charge jump and a 9% total-bill increase comes down to riders. Costs the utility previously collected through the Distribution Investment Rider, the Infrastructure Investment Rider, and the Tax Savings Credit Rider are now folded into base rates. Those rider lines drop as the base rate lines climb, so the total bill moves much less than any single component.

AES Ohio said its rates remain among the lowest for investor-owned utilities in Ohio.¹

Why the Increase

AES Ohio filed the application on November 29, 2024, its first distribution rate review since 2020. The company pointed to storm damage repair, an expanded tree-trimming program, and new infrastructure supporting the Honda and LG Energy Solution battery cell plant being built in the region. It also cited rebuilding work in areas hit by the May 2019 Memorial Day tornadoes.⁷⁸

In accepting the settlement, the PUCO called it the product of “collaborative efforts” and said it would let the utility “continue delivering safe, reliable service, especially after major storms.”¹ The agreement went in unopposed, signed by parties including PUCO staff, the Ohio Consumers’ Counsel, the Ohio Energy Group, the City of Dayton, the University of Dayton, and Walmart.²

Help If You Can’t Pay

The settlement’s Gift of Power funding is aimed at customers who don’t qualify for state energy assistance. Run in partnership with The Salvation Army since 2015, the program had donated $1.5 million and helped more than 5,000 customers before the 2026 funding cycle. The new $1 million annual commitment brings cumulative support to $2.5 million.⁹

Eligibility runs to customers who have received a disconnection notice or carry a past-due balance and have hit a recent hardship such as job loss, serious medical expenses, or the death of a spouse. Applications for 2026 are open through December 31, 2026 through The Salvation Army at 937-528-5120.⁹

How This Compares to the Last Rate Case

AES Ohio’s previous distribution case, filed in November 2020, sought $120.8 million and was approved in December 2022 at $75.6 million.⁷ Because those rates were frozen until the Electric Security Plan was approved, the combined bill impact when both took effect in September 2023 was $5.33 a month, or about 3.4%, for a typical residential customer.¹⁰ The current $168 million increase is substantially larger, reflecting four more years of capital spending on the grid, storm recovery, and regional growth.

The Next Rate Case Is Already Filed

Five days after the settlement was approved, AES Ohio filed a separate three-year rate plan on November 10, 2025 covering 2027, 2028, and 2029. It’s the first Ohio utility to file under the framework in House Bill 15, which Governor Mike DeWine signed in May 2025.¹¹¹²

HB 15 replaces the Electric Security Plan process, in use since 2008, with mandatory distribution rate reviews every three years. Rates are based on forecasted investments and expenses, then trued up against actual spending through annual audits. The PUCO must complete its review within 360 days of accepting an application as complete.¹¹

AES Ohio proposed increases averaging about 3% or less per year for a typical residential customer across the three years.¹³ PUCO staff have recommended smaller amounts: $113.9 million for 2027 against AES Ohio’s requested $169.8 million, with proportionally smaller cuts in 2028 and 2029.¹⁴

Public hearings are scheduled for July 2026. The Ohio Consumers’ Counsel has urged residential customers to speak, saying AES Ohio “must prove any increase is necessary.”¹⁵

1
Spectrum News 1. PUCO, AES Ohio Reach Settlement Over Distribution Rate
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GovDelivery (PUCO). AES Ohio Rate Case Settlement
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AES Ohio. Fast Facts
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Ohio Consumers’ Counsel. AES Ohio Rate Increase
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WHIO. Settlement in AES Ohio’s Distribution Rate Case Accepted
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AES Ohio. Distribution Rate Review 2024
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AES Ohio. PUCO Approves AES Ohio Distribution Rate Case
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Daily Energy Insider. Residential Rates Would Increase to Align With AES Ohio’s Evolving Costs Under New Request
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AES Ohio. Gift of Power
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AES Ohio. AES Ohio ESP Fact Sheet
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AES Ohio. Multi-Year Reliability Plan 2025
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Ohio Consumers’ Counsel. Governor DeWine Signs House Bill 15
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Daily Energy Insider. New Three-Year Rate Plan Application Filed With State Regulators by AES Ohio
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PUCO. AES Rate Case Public Hearings Scheduled
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City of Wilmington, Ohio. OCC Urges Public to Speak Out on AES Ohio Electric Rate Increase