Allow me to drop some knowledge in this thread....
There are three parts to your electric bill; Generation, Transmission, and Distribution. The easiest analogy I can make for this is to think of AEP as a manufacturing company that also does shipping.
Generation would be the actual manufacturing step. So, the company makes widgets (electrons, since this is electric power we are talking about) and you have a purchase agreement with them. They will make however many widgets you need each month, and then ship them to you. The plant is way up in Cleveland, though, so it has to come by rail. Well, they own or lease the rail lines they need to get this to you as well (This is the transmission step) so part of the purchase agreement includes this. Once they get to the actual neighborhood, they have to step it down from shipping in bulk and get it to your door, so they load it on a truck, which they own, and bring it right to your door (this is the distribution step) and then include this as part of your purchase agreement. An alternative supplier would be supplanting AEP for your Generation and Transmission service. Distribution is regulated by The Man, and will ALWAYS be AEP in central Ohio. (unless someone were to buy them out)
You CAN and SHOULD be trying to find an alternative supplier for your electric. I myself use FirstEnergy Solutions, as that is the least expensive providor in my area. My bill WOULD HAVE been about $45 dollars more, had I not switched.
I will actually be able to offer an alternative energy agreement for my friends here in Ohio in the very near future. It will not be something you can get on the street, only through our company, at least initially. It doesn't pay me anything (I make my money on selling to businesses), it's just for folks that I and my company folks are tight with to try and help out. If you are interested, please send me a pm and as soon as I know the details, I will get in touch with you.