Columbus City Council passes resolution urging Public Utilities Commission to block rate hike

During its Monday evening meeting, the Columbus City Council passed a resolution urging the Public Utilities Commission of Ohio to block a proposed rate adjustment by American Electric Power Ohio, amid growing concerns over rising electricity costs for residents.

The resolution, passed unanimously, criticizes a Jan. 7, 2026, settlement filed by AEP Ohio that the utility describes as a modest decrease in distribution rates — about $1.22 per month for an average residential customer using 1,000 kilowatt-hours. Critics, including consumer advocates and council members, argue it masks a potential net increase of up to $30 per month per user when factoring in riders, credits and other charges.

PUCO must still approve the plan, expected in early 2026.

Council’s action highlights frustration with repeated bill pressures on AEP Ohio customers, who serve much of central and southern Ohio. Since 2020, the PUCO has approved multiple adjustments that have contributed to higher costs.

These include a 2021 base rate settlement that added roughly $10 monthly in 2024, an electric security plan in April 2024 allowing phased hikes up to $8 extra per month by 2028, and significant generation supply cost pass-throughs — driven by PJM Interconnection capacity auction results — that added about $27 per month starting in June of 2025.

Reports indicate that Ohio ratepayers have seen at least three to four meaningful increases since 2022, separate from supply market fluctuations.

A major factor in recent spikes is surging demand from data centers, particularly in central Ohio, home to nearly 200 facilities, ranking the state fifth nationally. Studies and analyses show Ohio residential electricity bills rose faster than the national average due to this boom, tied to artificial intelligence and cloud computing.

Policy Matters Ohio reported a 23.3% year-over-year increase in average residential bills by July 2025, the third-largest nationally. CNBC cited a 12% surge in Ohio prices in periods examined, compared to a 6% national rise, attributing much to data center concentrations in PJM-served states like Ohio, Virginia and Illinois.

Bloomberg and other sources noted wholesale prices in data-center-heavy areas rising dramatically — up to 267% in some cases over five years — with residential customers bearing portions via utility pass-throughs.

In July 2025, the PUCO approved a tariff requiring large new data centers (over 25 MW) to pay for at least 85% of projected usage for up to 12 years, aiming to shield ratepayers from subsidizing infrastructure. Despite this, concerns persist for grid strains amid increasing demands from current data centers — already outpacing supply capacity — as more small data centers pop up.

Ohio’s electricity prices, once below national averages, have climbed amid these pressures, stressing household budgets as other costs rise. Consumer pushback has resulted in a push for greater accountability from tech-driven load growth as elected officials attempt to prevent further burdens on residents.