Natural gas spikes and PJM capacity costs are aligning for two AEP Ohio rate hikes by June. Shop fixed plans now to avoid a $37/month increase.
COLUMBUS, OH, UNITED STATES, March 16, 2026 /EINPresswire.com/ — Possible Back-to-Back Increases to Make Shopping Electric Providers Essential
According to analysts at OHEnergyRatings.com, several factors appear to be aligning that make it more likely for electricity customers to face higher Price to Compare Rates this spring. Persistent cold, the Polar Vortex, the need for heat, and natural gas prices soon may create the perfect storm for AEP Ohio to raise its PTC rates this April 1. Complicating things further is the higher capacity auction rate that takes effect on June 1. As a result, the combination of these increases could raise an average monthly PTC bill by $37.
You can find the full article here: https://www.ohenergyratings.com/about-us/press/aep-ohio-price-to-compare-rate-increase-this-spring
How the Winter Storm Spiked Natural Gas Prices
The bitter cold from Winter Storm Fern sent natural gas demand for heat and power rocketing up. This year, demand has been in sharp focus with the addition of energy needs from LNG exports and data centers. The EIA noted that natural gas fueled generation in the Lower 48 states rose 14%. During the period, the natural gas spot market price average at the Henry Hub shot to $9.03 per mmBTU on January 28. Prices at regional hubs in New York and New England went even higher, spiking to more than $40.
By the end of the month, the natural gas price for the February NYMEX contract finished up at $7.460 per mmBTU; nearly twice what it was in January.
While natural gas spot prices relented, below normal temperatures moved through most of the eastern US, including Ohio, for much of February. The last two weeks dented stored natural gas supplies bringing them below the five year average.
Still, consumers need to remember that natural gas costs charged to electric generators are often delayed from showing up on consumers’ electricity bills for a month or two. As a result, high February natural gas prices may affect electricity rates in April.
PTC Pricing Trends Discovered
When analysts studied four years of rate data for five Ohio investor-owned utilities they uncovered a pattern suggesting PTC customers might see higher Columbus electricity rates starting this spring.
· Over the past four years, when utility PTC rates changed in April, they rose by an average of a little more than 2%.
· First Energy utilities tend to raise rates the most.
· AEP Ohio and Duke Energy tend to raise rates the least.
· A minimum 2% hike this April will raise PTC rates by an average of 2 cents.
For AEP Ohio PTC customers, that adds up to paying 12.678 cents per kWh. For an average month’s use of 850 kWh, the rate change would increase bills by $17 per month just for the energy supply.
Second PTC Rate Hike Coming in June
On June 1, 2025, the first capacity auction rates took effect and helped increase AEP Ohio Price to Compare rates by an average of 2.2 cents per kWh. Basically, the PTC rate for five of Ohio’s electric utilities went from an average rate of 7.4 cents per kWh to 9.6 cents per kWh over night.
While the 2026 capacity auction results were far more expensive, PJM recently agreed to extend the existing price collar for two more years. However, a repeat of a 2-cent increase this June would push the average PTC rate to roughly 14 cents per kWh. This means that just as air conditioning season starts, PTC customers could then see an additional $20 per month in supply costs on top of the April increase.
In short, AEP Ohio PTC customers might wind up paying $37 more for the same amount of electricity on the first day of summer than they did on the first day of spring.
What AEP Ohio Customers Can Do Now
OHEnergyRatings.com reminds AEP Ohio customers to do an apples to apples Ohio rate comparison when they shop fixed-rate plans from certified retail energy suppliers. AEP Ohio will change its PTC rates three times between March 31 and July 4. Two of these will probably be increases. By locking in a 12 month plan now while rates are still low, customers can avoid being surprised by fickle Price to Compare rates and get their electricity at a low price that will not change.
“We know that AEP Ohio will see energy demand growth intensify further,” explains Karl Trollinger, CEO of Electricity Ratings. “Consumers already know that data center development is going to keep raising supply rates. But we’re now seeing that as this happens, the AEP Ohio Price to Compare rates may get more volatile. With affordability at the top of consumers’ minds, steady and predictable pricing from fixed plans makes it easier to budget monthly energy bills.”
OHEnergyRatings.com is a website operated by Electricity Ratings, LLC.
Electricity Ratings, LLC operates a network of energy shopping websites serving 17 states and 56 utilities, providing our energy comparison and ratings service to over 80 million customers. We provide our customers with the power to choose the best providers through our consumer reviews platform which provides a reliable, unbiased source of valuable consumer insight. And we back that up by offering in-depth energy company service analysis, personalized recommendations, and practical advice. Our mission is to help consumers harness the power of information to find, compare, and buy electricity and energy services from the best providers.
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https://www.ohenergyratings.com/
Vernon Trollinger
OHEnergyRatings.com
email us here
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