AES Ohio Seeks Rate Hikes as Power Demand Outpaces Supply

The utility company AES Ohio has applied to the Public Utilities Commission of Ohio to increase electric distribution rates for a three-year period from 2027 to 2029. This request comes as electricity prices remain near record highs, a trend PJM Interconnection reported following a capacity auction on July 14.

Industry officials attribute the rising costs to a supply-and-demand imbalance, noting that demand from electric vehicles, data centers, and smart devices is growing faster than new energy generation can be constructed. This struggle is further compounded by an aging 20th-century electric grid that requires a massive overhaul to support a modern economy. In Ohio, the financial impact is evident in service disconnections for non-payment, which reached 15,193 between June 2025 and May 2026.

This trend extends beyond Ohio to other regions in the United States. In Texas, delivery fees have reached record highs. While utilities such as AES Ohio and Duke Energy provide financial assistance programs to help struggling customers, officials warn that high electricity prices are likely to persist for the foreseeable future.