Basic Transmission Cost Rider
AEP Ohio
Current Rate
4.3400¢/kWh
PUCO Case
10-2657-EL-RDR
Est. 2011
Recovers the cost of transmitting electricity over high-voltage transmission lines from generators to local distribution systems.
📜 History & Background
The Basic Transmission Cost Rider (BTCR) is one of the most significant non-bypassable charges on AEP Ohio customer bills. At approximately 4.34¢/kWh, it reflects the actual cost of transmitting electricity over high-voltage transmission lines from power plants to local distribution systems. Transmission costs in Ohio are governed by PJM Interconnection, the regional grid operator, under FERC oversight. When FERC approves transmission rate increases — which it does through annual formula rate filings — those costs flow through to customers via the BTCR. AEP Ohio's transmission costs have risen significantly over the past decade as the utility has invested heavily in high-voltage infrastructure across the PJM footprint.
⚙️ How It Works
The BTCR is assessed per kWh consumed and changes annually based on FERC-approved transmission formula rates. Because it is a FERC-regulated cost, PUCO has limited ability to reduce or modify it — the rate is effectively a pass-through of federally regulated costs.
🔒 If You Switch Suppliers
Non-bypassable — AEP Ohio's transmission costs must be paid by all customers regardless of supplier. This is one of the most important items to understand when comparing AEP Ohio to other Ohio utilities: the high BTCR means that even with a competitive supplier, AEP Ohio customers carry a significant non-bypassable transmission burden. It's separate from the supplier's generation rate.