AEP Energy

What AEP Energy does

AEP Energy, Inc. is a competitive retail energy supplier headquartered in Columbus, Ohio, and a wholly-owned subsidiary of American Electric Power (AEP), one of the largest U.S. electric utilities. Founded in 2002, the company purchases bulk electricity directly from generators and wholesale markets and resells it at competitive rates to residential, small business, and commercial/industrial customers across 28 service territories in six states (Illinois, Ohio, Pennsylvania, Delaware, Maryland, New Jersey) and Washington D.C., serving more than 500,000 customers. It also provides natural gas supply, primarily in Ohio via the Columbia Gas of Ohio Choice program, and renewable energy plans under the ECO-Advantage brand that match up to 100% of customer usage with Green-e Energy certified Wind Renewable Energy Certificates. The company holds a BBB A+ rating and reports 94% overall customer satisfaction.

The company's product portfolio spans electricity and natural gas supply contracts (fixed-rate, variable-rate, and renewable variants), the AEP Energy Reward Store loyalty program, distributed energy resource and PeakAdvisory demand-management services for commercial customers, government aggregation programs, and an Energy Resource Guide providing market intelligence (AD Hub pricing, capacity, historical LMP and REC prices). Underlying technology consists of bulk energy procurement and hedging systems, Green-e certified REC matching, automated environmental disclosure reporting from regional transmission organizations, and a self-serve web enrollment platform with zip-code-based plan lookup. Beyond retail supply, AEP Energy has moved into physical generation ownership, including a 3.6 MW solar array partnership with the City of Clyde, Ohio (2015), a 101 kW solar installation at Ohio State University's RPAC (2014), and a 49.9 MW Gem City Solar PPA with Zelestra scheduled to be operational by end of 2027.

AEP Energy operates a hybrid go-to-market model combining self-serve online and phone enrollment for residential and small business customers with dedicated enterprise field sales teams for commercial and industrial accounts. Distribution is augmented by an extensive channel-partner ecosystem — government aggregation programs, the Ohio State University Alumni Association, the Chicago Cubs/Wrigley Field sponsorship, and multiple chambers of commerce and trade associations (Morton EDC, BRAI, IPMA-IACS with 2,000+ locations, Lancaster Fairfield County Chamber, Chicagoland Chamber) — providing referral-based SMB and consumer acquisition. Revenue is generated through per-kWh and per-Mcf subscription charges on electricity and natural gas supply, augmented by renewable REC premiums on ECO-Advantage plans. As a privately held subsidiary of AEP, no public revenue figures are disclosed.

Name

AEP Energy

Legal name

AEP Energy, Inc.

Website

https://aepenergy.com

Company type

Private

Founded year

2001

Operating status

Operating

Headcount range

251–500 employees

Short description

AEP Energy is a wholly-owned subsidiary of American Electric Power that supplies competitive electricity and natural gas to more than 500,000 residential, small business, and commercial customers across 28 service territories in six states and Washington D.C.

Ownership category

akta.pro rank

Product category

Retail Energy Supply

NAICS

Electric Power Generation, Transmission and Distribution (2211), Natural Gas Distribution (221210), Solar Electric Power Generation (221114), Wind Electric Power Generation (221115)

SIC

Electric Services (4911), Natural Gas Transmisison & Distribution (4923)

akta.pro primary industry

EV Charging–Integrated Retail Supply (Home/SMB) (EUAGABAJ)

akta.pro secondary industry

Hybrid Renewable + Storage Plant Integration (Solar+Storage, Wind+Storage) (EUAEAEAE)

Keywords

• Retail electricity supply
• Natural gas supply
• Renewable energy certificates
• Competitive energy supplier
• Energy aggregation programs

Headquarters

HQ city

Columbus

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Operations, Personnel, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Electricity Supply: AEP Energy purchases bulk electricity directly from generators and wholesale markets, then sells it to residential, small business, and commercial/industrial customers at competitive rates. Revenue is generated through per-kilowatt-hour (kWh) charges for electricity supply, with options for fixed-rate plans providing price stability or variable market-based pricing.
2. Natural Gas Supply: AEP Energy provides natural gas supply services (primarily in Ohio) through the Columbia Gas of Ohio Choice program and other utilities. Revenue is generated through per-Mcf (thousand cubic feet) charges for natural gas supply.
3. Renewable Energy Certificates (RECs): Sale of Green-e certified renewable energy plans (ECO-Advantage) that match customer electricity usage with wind RECs, providing additional revenue stream from environmentally-conscious customers.
4. Demand Response & Distributed Energy Resources: Services for commercial and industrial customers including PeakAdvisory Service for demand management and distributed energy resource optimization.

Pricing tiers

Go-to-market motion3 records

Distribution channels7 records

Marketing channels8 records

Core offering

AEP Energy is a certified competitive retail energy supplier that purchases bulk electricity and natural gas directly from generators and wholesale markets, then resells it to residential, small business, and commercial/industrial customers in deregulated U.S. markets. The company supplies electricity across 28 service territories in six states and Washington D.C. (Illinois, Ohio, Pennsylvania, Delaware, Maryland, New Jersey) and natural gas primarily in Ohio. It also offers Green-e Energy certified renewable energy plans (ECO-Advantage), government aggregation programs, and demand management services for C&I customers.

Product overview

AEP Energy is a competitive retail energy supplier offering a comprehensive portfolio of electricity and natural gas supply products across deregulated markets. The company operates as a single unified offering with distinct customer segments (Residential, Small Business, Commercial) accessing electricity and natural gas plans, supplemented by renewable energy options through ECO-Advantage® plans. Additional value-add services include the Reward Store loyalty program, PeakAdvisory demand management, Distributed Energy Resources solutions, Government Aggregation programs, and the Energy Resource Guide for market intelligence. The company leverages its parent company American Electric Power's 100+ year history and serves customers across 28 service territories in six states and Washington D.C.

Differentiator

Problem solved

Functional benefit

Brands

• ECO-Advantage®: Renewable energy plans that match up to 100% of electricity usage with Green-e® Energy Certified Wind Renewable Energy Certificates (RECs) for residential, small business, and commercial and industrial customers.

Products and services

• Residential Electricity Supply
• Residential Natural Gas Supply
• Small Business Electricity Supply
• Small Business Natural Gas Supply
• Commercial Electricity Supply
• Commercial Natural Gas Supply
• ECO-Advantage Renewable Energy Plans
• Government Aggregation Programs
• PeakAdvisory Demand Management Service
• Distributed Energy Resources Solutions

Quantifiable outcome

• Serving more than 500,000 customers across six states and Washington D.C.
• +4 more outcomes

Named customers6 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Eleven partnerships are on record, tiered minor, major and core.

• City of Clyde, OhiominorStrategic or Co-development Partner · 23 September 2015AEP Energy partnered with the City of Clyde, Ohio to design, build, own and operate a 3.6-megawatt solar energy array. The City of Clyde purchases all electricity generated by the solar panels to help meet its energy needs.
• The Ohio State University (Solar Array)minorStrategic or Co-development Partner · 28 July 2014AEP Energy installed a 101-kilowatt solar array on the roof of The Ohio State University's Student Life Recreation and Physical Activities Center (RPAC). AEP Energy funded, built, owned and operated the approximately 10,000-square-foot array, made up of 367 solar panels.
• Arena District Athletic ClubminorGTM or Marketing Partner · 13 November 2013Partnership with Arena District Athletic Club in Columbus to launch the 'Energize Your Health' program, allowing Central Ohioans to save money on their electricity supply and athletic club membership.
• Lancaster Fairfield County Chamber of CommerceminorGTM or Marketing Partner · 13 June 2013Partnership with Lancaster Fairfield County Chamber, Neace Lukens, and AEP Energy to help reduce Chamber members' energy costs through the Chamber's suite of Member Services.
• ZelestramajorStrategic or Co-development PartnerZelestra signed a long-term Power Purchase Agreement (PPA) with AEP Energy Partners for the 49.9 MW Gem City Solar project in Dayton, Ohio. This project will be one of the largest solar generating facilities within a U.S. city limit. Full construction is expected to begin in early 2027 with the facility scheduled to be fully operational by the end of that year.
• The Ohio State UniversitycoreGTM or Marketing PartnerOhio State University and AEP Energy partnered to bring renewable energy options to Buckeye Nation through the Ohio State Alumni Partnership. Alumni and supporters can enroll in 100% renewable energy plans for their homes with AEP Energy, earning 40% more Reward Dollars through the partnership enrollment links.
• Chicagoland Chamber of CommercecoreGTM or Marketing PartnerAEP Energy served as Presenting Sponsor of the Chicagoland Chamber of Commerce ChamberPlus+ Program, serving as exclusive energy provider within the program and helping promote discounted products and services for Chamber members.
• Chicago Cubs / Wrigley FieldcoreGTM or Marketing PartnerThree-year partnership making AEP Energy the Official Energy Partner of the Chicago Cubs and Wrigley Field and the Official Energy Supplier of Wrigley Field. AEP Energy provides exclusive electricity supply to Wrigley Field with signage displayed on the stadium.
• Morton Economic Development Council (Morton EDC)coreGTM or Marketing PartnerExclusive partnership with Morton EDC to supply members with energy and a full range of energy efficiency solutions. Morton businesses averaged 20% savings off their electricity supply compared to their current utility rate through the partnership.
• Beverage Retailers Alliance of Illinois (BRAI)coreGTM or Marketing PartnerExclusive affiliation with BRAI extending savings on electricity supply, renewable energy and energy efficiency solutions to members. BRAI members averaged 20% savings off their electricity supply compared to their current utility rate.
• Illinois Petroleum Marketers Association / Illinois Association of Convenience Stores (IPMA-IACS)coreGTM or Marketing PartnerExclusive partnership with IPMA-IACS to supply members with energy and energy efficiency solutions. AEP Energy works individually with the 2,000+ IPMA-IACS locations to customize programs designed to save money on supply and use.

Scale indicators9 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Direct Energy: Direct Energy is one of the largest retail electricity and natural gas suppliers in North America (an NRG subsidiary), serving residential and commercial customers across many of the same deregulated states as AEP Energy, including Ohio, Illinois, Pennsylvania, and others. Highly comparable in product offering, customer segments, and multi-state retail supply model.
• Constellation: Constellation is a major competitive retail electricity and natural gas supplier (formerly Constellation/Exelon) serving C&I, residential, and public sector customers across deregulated U.S. markets. Closely comparable to AEP Energy in C&I focus, multi-state retail supply, and renewable energy offerings.
• Vistra Corp: Vistra owns multiple retail electricity brands (TXU Energy, Dynegy, Public Power) and is one of the largest competitive retail electricity suppliers in the U.S., with multi-state operations and significant C&I exposure. Comparable to AEP Energy in retail supply, multi-territory footprint, and commercial customer focus.
• Engie Resources: Engie Resources is the retail energy supply arm of Engie North America, providing electricity, natural gas, and renewable products to C&I customers across deregulated U.S. markets. Highly comparable to AEP Energy's commercial business in product offering, C&I focus, and renewable/REC products.
• Shell Energy: Shell Energy North America provides electricity, natural gas, and environmental products to commercial and industrial customers in deregulated U.S. markets. Comparable to AEP Energy in C&I focus, multi-state retail supply, and structured renewable/REC offerings.
• Green Mountain Energy: Green Mountain Energy (an NRG subsidiary) is a retail electricity supplier focused on 100% renewable energy plans for residential and business customers in deregulated U.S. markets. Highly comparable to AEP Energy's ECO-Advantage positioning on verified renewable supply.
• XOOM Energy: XOOM Energy is a retail electricity and natural gas supplier serving residential and small business customers across deregulated U.S. markets, including Ohio, Pennsylvania, Illinois, and others. Comparable to AEP Energy in product offering and customer segment mix.
• EDF Energy Services: EDF Energy Services provides retail electricity and natural gas to commercial, industrial, and institutional customers in deregulated U.S. markets, with renewable and demand-response offerings. Comparable to AEP Energy in C&I focus, multi-state operations, and structured renewable products.
• Public Power: Public Power (a Vistra brand) is a retail electricity supplier serving residential and business customers across deregulated markets. Comparable to AEP Energy in product offering, customer segment mix, and multi-state retail supply model, though at a smaller scale.

Broad incumbents

• NRG Energy: NRG Energy owns multiple retail electricity brands (Reliant, Green Mountain Energy, Direct Energy) and is one of the largest competitive retail electricity suppliers in North America, with a broader portfolio including generation. Comparable in retail supply business with wider scale and scope.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/aepenergy
• LinkedInlinkedin.com/company/aep-energy
• Xx.com/aepenergy

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about AEP Energy