AES · 10-Q · 2026Q3 · Full report

AES Ohio Rate Plan

AES CORP · 2026-11-03 · Importance 40 · Surprise 42

Ohio House Bill 15, effective August 14, 2025, permits three-year forecasted base distribution rate cases and eliminated the Legacy Generation Resource Rider, which had allowed recovery of net OVEC costs and revenues. AES Ohio’s proposed Three-Year Rate Plan settlement sets base distribution rates for 2027–2029, provides for annual true-ups, and includes a 9.5% return on equity subject to annual performance metrics. The PUCO held an evidentiary hearing on August 4, 2026, and AES Ohio anticipated a final order by the end of 2026; changes to the regulatory framework, including recovery of future net OVEC costs and revenues, could materially affect results, financial condition, and cash flows.

Key facts

• The AES Ohio TYRP Settlement provides base distribution rates for 2027–2029, annual true-ups to forecasted amounts, and a 9.5% return on equity subject to annual performance metrics; PUCO approval is pending, with a final order anticipated by year-end 2026. source
• Utilities’ three-month Operating Margin increase included $42 million due to higher retail rates resulting from AES Ohio’s 2024 DRC Settlement implemented in November 2025, net of certain riders incorporated into base rates. source
• Utilities’ nine-month Operating Margin increase included $109 million due to higher retail rates resulting from AES Ohio’s 2024 DRC Settlement implemented in November 2025, net of certain riders incorporated into base rates. source
• AES Ohio filed its TYRP application on November 10, 2025, proposing rates for 2027, 2028, and 2029 and investments to modernize infrastructure and expand customer support. source
• Ohio House Bill 15, effective August 14, 2025, allows electric utilities to file three-year forecasted base distribution rate cases and eliminated the LGR, which had allowed recovery of net OVEC costs and revenues; changes including future net OVEC cost recovery could materially affect AES results, financial condition, and cash flows. source
• AES Ohio issued $11.1 million in one-time bill-credit refunds during the third quarter of 2026 following a PUCO order concerning the 2018 and 2019 SEET; the OCC sought rehearing on October 5, 2026. source
• The OCC appealed AES Ohio's reversion to ESP 1 and sought a refund of RSC revenue dating back to August 2021; the reinstated RSC Rider provided approximately $79 million of annual revenue, and a court decision is pending. source