Electricity rates are capped through 2004
AEP's Michigan customers pay some of the lowest rates in the state, and those prices are capped through 2004. The fuel portion of AEP customer rates is frozen through 2003.

In addition, AEP's Michigan customers receive a credit on their bill each month, the result of money AEP saves through its merger with CSW, which was transacted in June 2000.

Consequently, it may be difficult for an AES to compete effectively in the AEP service area. This means that consumers may have little actual “choice” on January 1.