The 8.7 cents/kwh rate you cite is only for generation and transmission. It doesn't include distribution, the "customer charge," or the "retailer stability rider." When you add in those, AEP's total rate is 15.6 cents. The national average of 11.6 cents includes distribution and other fees.
Adding up it all up:
- Including AEP's bullshit "retail stability rider" (i.e. the "we're losing customers but we are still a monopoly and can lobby the PUCO for anything we want so screw you even if you "switch" fee).
- the "customer charge" which is apparently a charge for being forced to be a customer of their sub-par distribution service ( http://www.dispatch.com/content/stories/business/2013/04/03/aep-system-passes-and-fails-in-state-reliability-test.html )
- and the "phase-in recovery rider" which is the fee to fix the damage to their poorly maintained infrastructure from storms so it doesn't cut into their excessive profits ( http://www.cantonrep.com/newsnow/x1233656032/Court-rules-against-AEP-upholds-excess-profits-law ), which on my bill is admittedly only 6 cents....
The total comes out to 12.8 cents/kwh and I'm only paying 6.5cents for generation. I would be perfectly willing to pay above the national average if we were receiving above the national average of reliability. But we're not.
I'm not even going to go into the horror story that happened across the street here during AEP's pole replacement activity. I dont feel at liberty to give much information but they screwed up royally and badly damaged a local small business.
The PUCO needs to reign these guys in and actually do something about the reliability issues instead of just ignoring the situation (example: http://www.10tv.com/content/stories/2012/07/19/columbus-10-investigates-review-of-fallen-power-lines-that-trapped-drivers-slow-to-start.html )
geez. sorry for the rant, but the situation is appalling.