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![Ohio Natural Gas, Electricity Rates Are Going Up in 2023](https://fire-and-ice-cdn.s3.us-east-2.amazonaws.com/blog/ohio-natural-gas-electricity-rates-going-up/header.jpg)
![Scott Gowans](https://fire-and-ice-cdn.s3.amazonaws.com/team/scott-gowans.jpg)
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April 12th, 2023
As you might have surmised, the cost of operating your heating and cooling equipment is increasing.
The current debate about whether the United States (as well as the rest of the world) is in a recession is a matter of semantics. One set of economists says that because the country endured two consecutive quarters of negative gross domestic product (GDP), the U.S. entered into a recession in the summer of 2022.
The National Bureau of Economic Research (NBER), disagrees. According to their definition of recession — a significant decline in economic activity that lasts more than a few months — we are not. But it still might be around the corner.
This much is true, as most consumers will concur: The economy could be better.
Adding insult to injury, the price of energy is going up. Both AEP and Columbia Gas have announced price increases in 2023. The cost of staying warm or cool just went up.
AEP is taking steps toward providing “clean energy,” but it comes at a price. According to the company, AEP Renewables is heavily invested in wind and solar energy, which it sells to utilities, electric cooperatives, municipalities, and corporate customers.
As a result, the company has switched thousands of households’ energy sources to clean energy. AEP Energy is moving customers automatically into the Clean Energy Columbus Program. (You can opt out of the program by clicking here.)
As a result, the fee went from 5.499 cents per kilowatt hour in 2022 to 7.884 in 2023. The price is higher than AEP Ohio’s electric rates have been since at least July 2019.
Customers are allowed to opt out, but another jump in prices looms. AEP Ohio’s President Mark Reitter emailed customers to let them know that an increase in energy usage and higher generation costs will lead to electric bill hikes for “many customers,” beginning in June 2023.
According to The Columbus Dispatch, AEP said customers in Ohio should expect their bills to jump by close to 30% this summer.
AEP states that changes in the cost of electricity production were caused by increased global demand, global supply chain issues, and the war in Ukraine.
AEP Ohio serves approximately 1.5 million customers.
And then there’s this.
The Public Utilities Commission of Ohio (PUCO) approved Columbia Gas of Ohio’s request to raise its fixed-monthly cost from $36 a month to nearly $60 a month over the next five years for residential users. The company said it needs the increase because it hasn’t filed for such a “base rate” increase in nearly 15 years.
As a result, residential customers will experience a nearly $3 to $4 increase in their monthly bill. Consumers are expected to see the new charges starting in May 2023. The charge doesn’t include the cost of gas itself, which has increased sharply in recent years.
The Environmental Law & Policy Center states that in five years monthly costs will increase by more than $20, from $37 a month to as much as $58. Rob Kelter, a lawyer with the Chicago-based non-profit advocacy group, said, “What it essentially means for a lot of consumers is they’re going to have less disposable income for customers who are really struggling to pay their bills.”
The group has filed an application for re-hearing with the Public Utilities Commission of Ohio over the Columbia Gas increase.
Columbus Gas stated, “This increase request reflects the costs necessary to continue providing safe, affordable, reliable natural gas service. The rate increase allows the company to replace aging gas lines and other infrastructure, along with the costs of capital investments over the next five years.”
Columbia maintains more than 20,000 miles of natural gas pipelines and facilities that serve its 1.4 million customers in 61 of Ohio's 88 counties.
Resources for Ohioans
- According to PUCO, Columbia will continue its low-income home weatherization known as WarmChoice, which will provide $70 million in funding over the next five years. In addition, Columbia will implement a new $3.5 million bill-payment assistance program.
- Energy Assistance Programs sponsored by the Ohio Department of Development help low-income Ohioans of all ages deal with the costs of heating or cooling their homes. Apply for these programs at energyhelp.ohio.gov. For more information on these and other programs, call toll-free 1-800-282-0880, or contact your area agency on aging.
- Home Energy Assistance Program - HEAP helps low-income Ohioans of all ages pay heating and cooling bills.
- Home Weatherization Assistance Program - HWAP helps qualifying low-income homeowners and renters reduce energy consumption while increasing the comfort of their homes.
- Percentage of Income Payment Plan - PIPP is an extended payment plan for qualifying customers that requires regulated gas and electric companies to accept payments based on a percentage of household income.
Read more: How to Reduce Your Utility Bill Dramatically
Read more: Natural Gas Prices Are Increasing. Here’s What You Can Do
Read more: Will a High-Efficiency Gas Furnace Save You Money?