Low-Income Programs

As with virtually all other goods, the price of electricity has risen over the years. At times, customers are forced to choose which basic human needs they can afford. At AEP, we use energy efficiency programs and consumer education to help customers reduce their electricity consumption. We also have several energy assistance grants and programs to help customers.

In the majority of its states, AEP facilitates Neighbor to Neighbor programs that help customers who are behind on their bills, but whose incomes disqualify them for government assistance. The funds for this program come from customer contributions, as well as AEP grants.

Energy assistance provided through AEP to help customers pay their electric bills (in millions)

Operating Company 2012 2013 2014
Appalachian Power $24.1 $12.4 $25.6
Kentucky Power $3.0 $1.9 $1.7
Indiana Michigan Power $8.9 $7.2 $5.6
AEP Ohio $16.5 $20.5 $11.0
Public Service Company of Oklahoma $9.5 $9.7 $8.7
Southwestern Electric Power Company $5.7 $5.5 $4.4
Totals $67.7 $57.2 $57.0

AEP Ohio residential customers can also participate in the Percentage of Income Payment Plan (PIPP) Plus Program. The program allows income-eligible customers to make reduced payments on their utility service bills based on a percentage of the household income and heating source. AEP Ohio had 146,675 customers participating in the program at the end of 2014.

Public Service Company of Oklahoma (PSO) helps its customers who are facing financial hardship to heat and cool their homes through their Light A Life Program. Light A Life is a year-round program allowing customers to pay a little extra each month to support customers in need. PSO customers have generously given to the Light A Life program since 1986. In 2014, approximately 760 pledges were recorded, totaling $74,797.

Number of households receiving LIHEAP assistance in 2014

Arkansas120,764
Indiana130,524
Kentucky129,737
Louisiana27,654
Michigan623,549
Ohio420,043
Oklahoma88,792
Tennessee72,776
Texas27,288
Virginia129,294
West Virginia90,627

AEP position

Through grants, we provided approximately $56.9 million in federal and private energy assistance in 2014. Funding in 2014 of the Low Income Home Energy Assistance Program, or LIHEAP, was about the same as in 2013. The LIHEAP program helps lowincome families pay their heating and electric bills through cash grants that are paid directly to the utility company.

We also provide other types of aid to assist customers. Our self-serve agency website provides a convenient way for social services agencies to make their pledges via the Internet. In 2014, more than 14,900 pledges were recorded, totaling $2.7 million. In addition, AEP facilitates Neighbor to Neighbor programs in the majority of its states that help customers who are behind on their bills, but whose incomes disqualify them for government assistance. The funds for this program come from customer contributions, as well as AEP grants.