COLUMBUS, Ohio — Energy rates have seen a spike globally for the past several years, and that also includes clean energy.


What You Need To Know

  • AEP called for a renegotiation of the "Clean Energy Columbus" program

  • Customers can expect to pay about $100 more this year for the clean energy program fee

  • There are currently four clean energy projects going on in the state of Ohio 

The price of clean energy is about to get a little steeper for customers in Columbus.

“We did agree to amend our contract with AEP Energy really to balance the cost of clean energy for residents,” said Erin Beck, who serves in the City of Columbus’ department of Public Utilities. 

She is referring to ‘Clean Energy Columbus,’ a program that was approved by Central Ohioans back in 2020. The goal was to give customers access to green energy at a fixed rate through 2034, but at last month’s city council meeting, AEP Energy officials laid out the reasons why the contract wasn’t going to work long-term.

“Supply chain disruptions, runaway inflation and a delay in the PJM Interconnection queue have severely challenged renewable energy project development,” said Frank Wilson of American Electric Power (AEP). 

COVID-19, the war in Ukraine and new requirements for renewable energy development in Ohio have also been contributing factors that have driven prices higher. The city agreed to renegotiate, meaning Columbus residents could pay an extra $100 dollars every year. 

“There have been some challenges that have delayed projects,” said Beck. “Prices have increased and so that is really what has been amended in the contract related to that local clean energy.”

The newly proposed deal calls for AEP Energy to build four new green energy facilities in Ohio that would provide enough electricity for all the customers within the program. It would let the company raise their rates as the facilities are completed, but it would also give the energy corporation the ability to terminate any projects that developers don’t hold up to their end of the bargain.

“By the end of this contract, we expect to fully transition to Ohio based clean energy,” said Beck, when asked about her confidence in the timeline and ability to meet their 2034 goal. “That is what we’re pushing for. That’s the goal and I know all parties involved with the program are committed to reaching that goal.”

While all the city’s AEP customers were enrolled into the program by default, anyone is allowed to opt out. Meanwhile, AEP Energy said it believes its new rates will still be competitive and Beck said she believes the program will still be $20 cheaper per month compared to competitors. A draft of the city’s new contract with AEP Energy is expected to be finalized in the coming months by the City of Columbus’ Public Utilities Department. 

The city of Cleveland has also partnered with AEP for its electric aggregation program, but it has a fixed ‘supply only’ rate until August, which includes 100% renewable energy from regional areas. 

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