Bill Staber, president of Staber Industries in Groveport says his workers make the most energy-efficient clothes washing machines you can build. The company has built its reputation around energy efficiency. Staber, like his customers, pays close attention to his electric bill. So when he saw the monthly electric distribution charges on his AEP bill this month had tripled, he was furious.
Staber is one of thousands of small business owners who are facing sudden and steep increases in their electric costs as the result of AEP rate changes approved by the state Public Utilities Commission last year.
"It's absurd," Staber said. "It's a license to steal. If gas went up to $9 a gallon, what do you think would be happening? I mean, come on, it's ridiculous."
Terri Flora, spokeswoman for AEP, said the increases are part of several rate cases that culminated with approvals by the Public Utilities Commission of Ohio last year.
Flora said customers are now paying for AEP costs that had been deferred for a number of years.
"The increase has to do with investments we have made over decades that we are now allowed to recover those costs," Flora said.
Flora said AEP is transitioning to the "wires side of the business" as more and more customers choose competing suppliers. So while the distribution charges on their bill are going up, the generation or supplier charges are going down.
"Most of these customers that are seeing pretty significant increases are also getting the benefit of now shopping for their generation provider," Flora said.
But Staber said he feels small manufacturers are being unfairly targeted. And the increases hit hard at a time when small businesses are still trying to recover from the recession.
"It comes right off the bottom line," Staber said. "Where's the money going to come from? I can't jack up my prices 305 percent. I have a hard enough time jackin' em up 3 percent."
A spokesman for the PUCO said they have received 25 complaints from small businesses about the rate increases.
Flora said the increases are temporary and will decrease over the next several years. She said the company has established a $5 million fund to help customers negatively impacted by the rate increases.
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