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LAST UPDATED: October 10th, 2023

AEP Energy was established in 2002 and is a certified retail electricity and natural gas supplier that operates in six different states as well as Washington, D.C. They are America's Energy Partner℠ and supply electricity and natural gas to approximately 430,000 residential and business customers. They are based out of both Columbus, Ohio and Chicago, Illinois. "AEP Energy is committed to excellence by serving customers with value, innovation and many years of industry experience." They are also a subsidiary of American Electric Power (AEP), a Fortune 200 Company.

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The Good

  • Cancellation Fee
  • Late Payment Fee

Cancellation Fee

AEP Energy has some good standout features customers will see as beneficial. The first thing is that they do not have a cancellation fee if you want to get out of your contract. This is a huge perk because most others will not match this same offer. Termination fees can be upwards of $250 sometimes so it can definitely save customers some money. AEP Energy's minimum of a 12-month contract doesn't need to be as worrisome because of the no cancellation fee. Customers can easily get out of their contract with a $0 charge.

Late Payment Fee

Another common fee you will see among deregulated energy companies is that they have a late payment fee which is taken against a 12-month contract. AEP charges customer 1.5% of the contract which is nothing compared to the usual 5% several other companies charge. Of course, this won't need to be an issue if you are good about making on-time payments or have automatic withdrawals set up. But in the case that something happens, 1.5% on a year-long contract is pretty minuscule. We commend AEP Energy for applying lower charges when it comes to extra fees such as these.

The Bad

  • Undisclosed Information
  • Electricity Fixed Rates
  • Contract Terms
  • Payment Options

Undisclosed Information

One of the most frustrating things that a potential customer will run into is when the most important information can't be found on a company website. Unfortunately, consumers will run into this problem multiple times when researching AEP Energy. We weren't able to find variable prices for natural gas and electricity as well as a fixed price for natural gas. Also, there are no mentions of minimum usage fees, monthly service charges and a deposit which are all common fees found amongst other deregulated energy companies. These are all types of information someone will want to see before considering the company they will want to sign up with. This is a huge issue if the information isn't available online. This simply means a customer will have to make an extra effort, such as calling in, to get the information they will need.

Electricity Fixed Rates

The electricity fixed rate is the only price we could find when looking at AEP Energy. They charge $0.131/kWh and when comparing this to others who offer electricity at a fixed rate, it is far more expensive than their other competition. Because AEP Energy covers a variety of other states, consumers can look to other companies and get literally half of the prices AEP Energy offers. If this is the only price that is publically available, I'm not sure we can be confident that their other prices will be much better.

Contract Terms

As mentioned above, AEP Energy's shortest contract length is only 12 months. Many people don't like longer contracts because they typically can't get out of it without paying a fee. However, with AEP, this isn't a completely bad scenario. They do not charge a cancellation fee which means that a customer could get out of a contract without paying anything. On the other end of the spectrum, their maximum length contract is 24 months. Usually, when a customer chooses a longer contract it's because they know they'll want to use the service for a longer period of time which will lock in a lower rate. Unfortunately, since AEP Energy's only price available is a relatively high in comparison, this might not be a very good choice either.

Payment Options

Finally, we look at how many options are available for customers to pay, specifically four different ones. AEP currently does not offer ways to pay through ACH forms, commonly known as electronic checks, and credit or debit cards. We see a huge issue with this as credit and debit cards are the most popular forms of payment for customers today. This only leaves ways of paying directly through a bank account or handwritten checks to pay for their bill. For customers who seriously consider AEP Energy, we suggest making sure that these two options of payments work for you before signing up as they are not as common uses.

The Bottom Line

AEP Energy has a lot of improvements to be made. Their bad traits far outweigh their good ones, and the biggest breakthrough they need to make is making sure all possible information is available online for customers to find. Not having options of paying through a card is also a big problem. If there are other deregulated companies available in your state, we recommend looking to them for more options before defaulting to AEP Energy.
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14 Reviews

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Christene Adams Cleveland, OH

Beware of their kwh charges! Somehow AEP Ohio signed them up with me, to be my electric provider and I couldn't understand why my bill was 3 times as much as my neighbors. I was afraid to run the AC all summer, and only did for a couple of hours to cool down the apt before I went to bed on the hottest nights of the summer. I'm a senior on a very small fixed income, living in a small 1 bedroom apt and AEP Energy charged me .32¢ per kwh, while other companies charged .11¢-.15¢per kwh. I would have never have known the truth if it wasn't for NRG,.....they are the guys at Walmart that try to get you to sign up with them, at a much cheaper rate. 0 AEP ENERGY TAKES ADVANTAGE OF PEOPLE, BY CHARGING 3 TIMES MORE THAN MOST OTHERS!! GREEDY!

7 months ago

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David Adrian Morales Weslaco, TX

AEP is a little crooked in my area. They take forever to do anything unless you leave them a "tip." Its very hard to get an appointment and they are always late when you do. They are impatient and quick to leave when youre late or if youre not there when they arrive. They take there time doing things too. We lose power a lot and sometimes takes days for them to fix. They shutdown several houses to work on 1 without any notice.

1 year ago

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Carebears Chicago, IL

I have to say AEP is such a rip off. My Bill has increased $60.00 in one month. Nothing and I mean Nothing has changed in my household to cause this increase. I call their customer service only for the rep to be a smart a$$ trying to tell me about my bills from 2020. Lol, This is 2023 it has absolutely Nothing to do with this month. I have lived in the same place for 3 years and never once have I had a Bill this high. You would think with all the technology they would be able to tell you what's burning the most KWH but they can't meanwhile our electric has to go out frequently due to the power grid not being able to handle the usage. You would think as the President and CEO sit at the head of the table raking in MILLIONS that they would figure out a solution. Instead they laugh at us all who struggle to pay these bills. This is nothing but GREED.

1 year ago

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DMA Shreveport, LA

I have been a Louisiana customer for all my adult life. Like most working American people my bills have been paid late so by no means I am the ideal customer but non the less I am a paying customer of 20+ years. In this area of Louisiana American Electric Power (AEP) is the only choice of electric providers we have. I feel that because of this it has limited the value of customer service we have from AEP. Because we do not have a choice of better services there is no standard to maintain customer satisfaction. Not having competitive services in this area leaves the customers here to deal with whatever AEP does because electricity is a necessity, we need the service and therefore being treated and charged unfairly. I have called to discuss the matter with customer services representatives, and I am told there is nothing they can do to help me I have asked to speak with a member of management, and I been placed on hold and never answered by a member of management. I submitted a written complaint over a month ago AEP has not even bother to send a response to inform me that the written complaint has been placed in the recycle been. I feel like a victim and this situation has caused me emotional distress.

2 years ago

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Tabitha Price White Plains, NY

If I could give a zero I would. Most unreliable power company I have ever dealt with! Now they are saying they are going to increase the power bill due to "improvements " WHERE? WHERE? WHERE? if the government thinks that electronic cars are gonna take off , I WOULD LIKE TO KNOW HOW???

11 months ago

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M Chicago, IL

Worse customer service. Im not surprised they are the last company on texas to get power restored to thousands that are in dangerous conditions. The same happened to me in Indiana. I was without power for 4 days. My food went bad. Customer service told me to throw it out and file a claim. Then when I filed a claim they denied it saying they don't cover any damages weather related

3 years ago

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Worthington, Ohio Columbus, OH

My generation provider was recently transferred without my verbal or written consent from American Electric Company to AEP Energy Inc. This was a fraudulent transfer as I did not authorize this transfer nor did I sign any contract. I had no knowledge about this transfer until recently, September 23, 2019. My statements were also changed from receiving them by mail to receiving them electronically. Again, I did not authorize this change either, which is why I am just now catching this.

4 years ago

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Jonathan Westerville, OH

Was in my apartment for 2 years with AEP, moved out halfway through july and my roommate had moved out in June. I was at my home for 14 days in July and they charged me the same amount for those 14 days as they did the entire month of June. Wouldn't give me any reason why, just said there was nothing they could do to help or explain why it would have been the same price and that I had to pay what they billed for

4 years ago

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Matt Dayton, OH

Horrible customer service, sent my account to collections with no notice. I have DPL as the local company and AEP was the Supplier. their rates went through the roof and the customer rep would not help at all. I switched because of this. then I got a collections notice less than a month later for a balance of less than $50. What company doesn't contact the customer first and just sends someone to collections. I have no problem paying them as I have since I found out what was owed. Now I have to fix the credit ding because of this. I would not recommend this company to anyone.

5 years ago

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Qui Blacklick, OH

Been in my place for just a month in a half. How in the world that my bill is $450 already? Straight frauds! AEP is a trip and their customer service is rude. I'm glad other electric companies are branching out in Ohio so we don't have to mess with AEP any longer. Hot mess I tell you.

5 years ago

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don rufener jr Uhrichsville, OH

i have been with aep energy for years this will be my last year they didnt meet kwh of the other power company. so paid big time guess lesson learned they lost a customer. do not do business with them you will pay higher price.

6 years ago

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Munroe Collins, OH

Received no notice thru Mail or Email of account term was completed. Rate went from 5.6 to 7.49 in matter of 2 months. Cost us over $200 in extra costs. Be very careful with these guys.

5 years ago

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Teresa Circleville, OH

My mother in laws bill went from 175 to 453 a month. How is this legal to prey on the elderly with a fixed income. They lie to get you signed up.

5 years ago

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Power goes out regularly with long turn around time for restoration. Electric bill is insane for awful service.

1 year ago