Trystan Casey
Ohio residents can choose their electricity supplier from a pool of available companies. Ohio Edison, The Illuminating Company, and Toledo Edison are the major players in the state. In the past, your electric distribution utility provided every aspect of your electric service, but now you can choose the company that supplies the electric generation. All electric generation suppliers must be certified by the Public Utilities Commission of Ohio (PUCO). Energy deregulation, or energy choice, means that Ohio residents have the freedom to shop for the plans and rates that best fit their needs.
| Characteristics | Values |
|---|---|
| Choice of electricity supplier | Ohio residents can choose their electricity supplier from a pool of available companies. |
| Certification of suppliers | All electric generation suppliers must be certified by the Public Utilities Commission of Ohio (PUCO). |
| Registration of suppliers | Suppliers must also be registered with the local utility to sell electric generation service in that utility's service area. |
| Deregulation | Some service areas in Ohio are deregulated, while others are not. |
| Unregulated utilities | Ohio's Rural Electric Cooperatives (RECs) are generally referred to as "unregulated utilities" because they are not governed by PUCO. There are 25 RECs serving rural residents across the state. |
| Fixed-rate plans | Fixed-rate plans keep rates constant for the duration of the contract, typically 12 to 36 months, providing predictable monthly bills. |
| Variable-rate plans | Variable-rate plans fluctuate monthly based on the market price of energy, with no contract or early termination fees. |
| No-deposit plans | Some electric companies in Ohio require a deposit, especially for customers with low credit scores, but no-deposit plans are also available. |
| Green energy plans | Renewable energy plans are available in Ohio, with electricity generated from sources like solar power, wind energy, and hydropower. |
| Switching suppliers | Switching suppliers may incur fees, and unauthorized switching ("slamming") is illegal. |
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What You'll Learn
Deregulation and energy choice
Ohio is one of 26 US states that have some form of energy deregulation, allowing its residents to choose their electricity and natural gas providers. Before the deregulation, Ohio residents relied on a single utility company, such as AEP Ohio, Dayton Power & Light, Duke Energy, or First Energy, for their electricity and gas supply. These companies controlled the generation, transmission, and distribution of energy in the state, leaving consumers with little to no say in who powered their homes.
However, in July 1999, Ohio restructured its energy market with Senate Bill 3 (SB3) to introduce energy deregulation and give consumers a choice in their energy providers. The bill came into effect on January 1, 2001, and mandated a 5% residential rate reduction and a price freeze on power until 2005 to allow the market time to grow.
With energy deregulation in Ohio, consumers can now choose from a variety of energy plans and rates that best fit their needs. They have the freedom to shop for energy plans, compare offers, and select a pricing plan based on their budget and usage. This competition among energy providers drives down rates and gives consumers the power to change their provider if they are not satisfied with their current plan.
It's important to note that while consumers can choose their energy supplier, the local utility company still manages the flow of energy to their homes and handles billing. Additionally, all electric generation suppliers and aggregators must be certified by the Public Utilities Commission of Ohio (PUCO), which continues to regulate the delivery of electricity and monitor the safety and reliability of the service. Consumers can also return to their previous energy provider's standard offer rate at any time, although they may be subject to termination fees from their new supplier.
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Fixed-rate plans
In Ohio, you can choose which company supplies your electricity and natural gas. Energy deregulation has given Ohio residents the power to choose their electricity and natural gas providers, as well as their plans and rates.
It is important to note that switching energy suppliers in Ohio can come with some costs and potential fees. While Direct Energy does not charge enrollment fees, some utilities and suppliers may charge a switching fee when signing up with a new supplier. Additionally, most suppliers charge a termination fee if you switch to another supplier before your contract expires. Therefore, it is recommended to carefully review the contract details, including any potential early termination fees and other important considerations.
When shopping for a fixed-rate plan, it is advisable to have your most recent bill from your previous supplier, as it will include your Price to Compare, making it easier to compare offers from different suppliers. You can also utilize the Public Utilities Commission of Ohio's (PUCO) Apples-to-Apples website, energychoice.ohio.gov, to help you compare offers and learn more about choosing an electric supplier.
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Variable-rate plans
In Ohio, you can choose which company supplies your electricity and natural gas. This freedom to shop for electricity generation suppliers is a result of energy deregulation, which has introduced competition into the market.
When choosing a variable-rate plan, it is important to closely review the contract and be aware of any potential fees. While some companies, like Direct Energy, do not charge enrollment fees, other suppliers may charge a switching fee when signing up with a new supplier. Additionally, most suppliers will charge a termination fee if you decide to switch to another company before the end of your contract. Therefore, it is essential to carefully consider the terms and conditions of your plan to avoid unexpected costs.
To make an informed decision when choosing an electricity supplier, it is recommended to have your most recent bill on hand. This bill includes your "Price to Compare," which makes it easier to compare offers from different suppliers. It is also beneficial to review the list of licensed electric generation suppliers certified by the Public Utilities Commission of Ohio (PUCO) and registered to sell electric generation services in your service territory.
Remember, even after switching suppliers, your local utility company, such as Ohio Edison, The Illuminating Company, or Toledo Edison, will still manage the flow of energy to your home and handle billing. Additionally, in the event of a power outage, you should contact your local utility company for assistance.
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Prepaid and no-deposit plans
In Ohio, some electric companies require a deposit to enroll in a plan, which may be waived if the customer has a good credit score. No-deposit plans are an alternative for customers who don't meet the credit score requirements. These plans are more common in deregulated energy markets, where consumers can choose their energy supplier.
No-deposit plans are also referred to as prepaid plans, where customers pay upfront for their service and can refill their account as needed. Prepaid plans are similar to prepaid phone plans and often don't require a long-term contract or a credit check. Customers are notified of their daily usage and alerted when their credits are low.
Prepaid plans allow customers to monitor their consumption more closely and make adjustments to save money. While the price of electricity (kWh rates) for prepaid and no-deposit plans is typically higher than that of standard plans, the convenience of not paying an upfront deposit may outweigh the slightly higher rates.
In addition to no-deposit plans, some companies may waive the deposit for customers who are 65 years or older, have a letter of credit from their current electricity provider, or have proof of on-time past electricity payments.
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Green energy plans
In Ohio, consumers can choose their electricity supplier and plan. This freedom of choice is a result of energy deregulation, which removed energy monopolies and expanded competitive energy choices for residents and businesses.
Ohio's Public Utilities Commission (PUC) monitors regulations and rates to ensure utility services are offered at fair prices. All electric generation suppliers and aggregators must be certified by the Public Utilities Commission of Ohio (PUCO).
When shopping for a green energy plan, it is important to know who to contact for billing questions or power outages. In most cases, your local utility company will still manage the flow of energy to your home and handle billing, even if you switch to a new supplier.
There are several green energy plans available in Ohio, including:
- Fixed-rate plans, which offer long-term price stability and protection from rate changes.
- Prepaid and no-deposit plans, which do not require a deposit to enroll and allow customers to pay upfront for their service, refilling their account as needed.
- Renewable energy plans, which include electricity generated from sources like solar power, wind energy, and hydropower. Some suppliers offer the ability to convert any available plan into a green plan for a small monthly fee.
It is worth noting that some suppliers may charge a switching or termination fee when changing providers. It is important to carefully read contracts and understand any associated costs before making a change.
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Frequently asked questions
Yes, Ohio residents can choose their electricity supplier from a pool of available companies.
Some electric companies in Ohio require a deposit to enrol in a plan. However, if you have a good credit score, they may waive the deposit.
The Price to Compare is the standard service offer rate you will pay for electric generation if you do not switch to an alternative electricity supplier.
A fixed-rate plan keeps your rate constant for the duration of your contract, which is typically between 12 and 36 months.
The Public Utilities Commission of Ohio (PUCO) oversees the Ohio utilities and retailers in the deregulated electricity market. All electric generation suppliers and aggregators must be certified by the PUCO.
