The electricity rate plan offered by Ohio utility AEP includes a 12 percent cap on rate hikes for the next three years, however that cap will likely be even higher, the Columbus Dispatch reports.
According to the news source, the Public Utilities Commission of Ohio arranged for the deal to be structured such that the utility could ask for charges within these three years that will be collected once the three-year period is up. Once this time comes, AEP will be given the go ahead to bill customers for any charges that were higher than the 12 percent cap.
Now, the utility is saying the new rate plan isn't exactly what it requested, and is somewhat concerned that the order from PUCO does not detail how or when the charges will be recouped.
"We understand the reasoning for implementing a cap," spokesman Jeff Rennie said in an email. "However, AEP Ohio is hopeful that the 12 percent cap interpretation would not be detrimental to the company and (would) include a mechanism to recover costs owed to us."
Fortunately for residents, Ohio's competitive energy market allows customers to shop around for electricity rates and compare energy plans side by side to determine the best possible option.