On November 29th, the Public Utilities Commission of Ohio (PUCO) accepted the results of AEP Ohio’s wholesale electricity auction. Electric utility companies like AEP perform these auctions to secure the electric supply needed for their standard service offer (SSO); the supply rate customers pay to the utility company. If you have not shopped the market for your electricity account, your supply rate will reflect the results of all the electricity wholesale auctions blended together.
In AEP, these auctions secure rates in one-year increments, June 1st through May 31st. The previous auction secured a rate of $0.05116 per kWh ($51.16 per MWh) for June 1st 2017 through May 31st 2018. The most recent auction that took place last November contained the following rates:
- June 2018 – May 2019: $0.05239 per kWh ($52.39 per MWh)
- June 2018 – May 2020: $0.04932 per kWh ($49.32 per MWh)
- June 2018 – May 2021: $0.04727 per kWh ($47.27 per MWh)
Although these will not be the final SSO rates as other auctions will occur, the results can be a good indicator that longer term electricity prices are lower than shorter term. If you would like to learn more or receive a free supply rate analysis, please contact us at email@example.com.