COLUMBUS, Ohio – July 24, 2025
The Public Utilities Commission of Ohio (PUCO) has approved a major smart grid initiative by AEP Ohio, authorizing the utility to begin a seven-year project to upgrade its electrical distribution circuits with advanced automation technology.
Under the plan, AEP Ohio will modernize at least 300 circuits across its service territory with equipment designed to detect outages and automatically reroute power, significantly reducing the number of customers impacted during service interruptions.
“Smart grid investments will continue to improve the reliability of electric service for AEP Ohio in a cost-effective manner,” said PUCO Chair Jenifer French. “The PUCO remains committed to ensuring Ohio’s electric utilities provide adequate, safe and reliable service at a fair price.”
The Commission cited a cost-benefit analysis indicating a return of $3.50 in customer benefits for every $1 spent. To limit customer impact, PUCO capped the total cost at $350 million over seven years, which translates to an average of just $0.22 added to residential electric bills per month each year.
The plan was formalized in a settlement agreement filed on January 6, 2025, by AEP Ohio, PUCO staff, the Ohio Energy Group, Ohio Energy Leadership Council, and the Ohio Manufacturer’s Association Energy Group.
Full documentation of the Commission’s decision is available at PUCO.ohio.gov by searching case number 24-787-EL-RDR in the Docketing Information System.
