Dive Brief:

• Based on current market trends, AEP Ohio is proposing to cut its electric rates by about 9% over three years starting in mid-2015 because of an expected drop in wholesale prices.
• The Ohio Consumers’ Counsel, which represents ratepayers, believes AEP Ohio's rates should come down even more. “There are 33 states that have residential electricity prices that are, on average, lower than electricity prices for consumers in Ohio,” said Marty Berkowitz, an OCC spokesman.
• AEP Ohio also asked the Ohio Public Utilities Commission for permission to continue a “distribution investment rider” that lets the utility recoup its investments in the distribution system.

Dive Insight:

Lower power prices in AEP Ohio's service territory could provide a boost to local manufacturing, which in turn could increase overall sales for the utility. The PUC will decide exactly how low the prices should go when it makes a decision on the proposal this summer.