What Small Business Owners Need to Know About Rising Energy Costs

If you’re a small business owner, you’ve probably noticed your energy bills going up—even if your usage hasn’t changed much. What’s behind the increase? AEP Energy’s “Understanding Capacity” Video Series explains it in simple terms and offers practical tips to help you manage your costs.

What’s This All About?

This video series features AEP Energy experts breaking down a key part of your electricity bill: capacity charges. These are fees that help ensure the power grid can meet everyone’s needs during peak times—like during a heatwave when air conditioners are running full blast.

Here’s what the series covers:

• What Are Capacity Charges? These charges help fund the infrastructure and resources needed to keep electricity flowing when demand is at its highest. Even if your business isn’t using more energy, these costs are shared across all customers.
• Why Are They Going Up? Due to changes in the energy market—like fewer power plants and increased demand—the cost of maintaining reliable electricity service has risen significantly.
• How Does This Affect You? For small businesses, this could mean higher monthly bills, even if your day-to-day operations haven’t changed.
• What Can You Do About It? AEP Energy offers tools and strategies to help you take control—like choosing the right pricing plan, improving energy efficiency, or participating in programs that reward you for using less energy during peak times.

Why It Matters for Small Businesses

You may not have a full-time energy manager, but that doesn’t mean you can’t make smart energy decisions. Capacity charges can make up a large portion of your bill, so understanding them—and knowing how to respond—can lead to real savings.

Take the Next Step

AEP Energy is here to help you navigate these changes. Their team can work with you to find solutions that fit your business and your budget.

Watch the video series here: Understanding Capacity

AEP Energy does not guarantee the accuracy, timeliness, suitability, completeness, freedom from error, or value of any information herein. The information presented is provided “as is”, “as available”, and for informational purposes only, speaks only to events or circumstances on or before the date it is presented, and should not be construed as advice, a recommendation, or a guarantee of future results. AEP Energy disclaims any and all liabilities and warranties related hereto, including any obligation to update or correct the information herein. Summaries and website links included herein (collectively, “Links”) are not under AEP Energy’s control and are provided for reference only and not for commercial purposes. AEP Energy does not endorse or approve of the Links or related information and does not provide any warranty of any kind or nature related thereto.