Umair Gaines
Ohio residents have the power to choose their electricity provider and plan. The Illuminating Company, Ohio Edison, and Toledo Edison are the electric distribution utilities that deliver electricity to your home or business. You can choose to keep one of these as your electricity supplier or opt for a different company. Ohio has a deregulated market, which means consumers can receive electricity from either their utility or an independent energy supplier. If you don't choose a provider, you will be automatically enrolled in a default plan with your utility, called the Price to Compare (PTC) or Standard Service Offer (SSO). When choosing an electricity provider, it's important to review the Electricity Facts Label (EFL) of any plan to understand the details, such as the rate structure and how the supplier determines its electricity rates. You can compare electricity rates and plans online to find the best deal and save money on your energy bills.
| Characteristics | Values |
|---|---|
| Choice of electricity provider | Ohio residents can choose their electricity provider |
| Default provider | If you don't choose a provider, your default provider will be your utility company, i.e., The Illuminating Company, Ohio Edison, or Toledo Edison |
| Default rate | If you don't choose a provider, you'll be automatically enrolled in a default plan and rate with your utility, called the Price to Compare (PTC) |
| Average monthly bill | $144.73 |
| Average electric rate | 16.56 cents per kWh |
| Average energy usage | 874 kWh per month |
| Cheaper options | Cheaper options are available, with the lowest Ohio energy price currently being 6.4 cents per kWh, offered by Public Power |
| Fixed-rate plans | Plans that keep your rate constant for the duration of your contract, typically lasting 12 to 36 months |
| Variable-rate plans | Plans where the electricity rate fluctuates monthly based on the market price of energy |
| Early termination fee | Fixed-rate plans may result in an early termination fee (ETF) if you end your contract early |
| No-deposit plans | No-deposit energy plans are available for customers who would prefer to skip paying a deposit |
| Green energy plans | Plans that include green energy are available |
| Charity support | Some plans support charities |
| Regulatory body | Ohio's Public Utilities Commission (PUC) monitors regulations and rates to ensure utility services are offered at fair prices |
| Certified providers | Only Certified Retail Electric Suppliers (CRES) can sell competitive electricity supply |
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What You'll Learn
Understanding the market and key players
Ohio's electricity market is deregulated, meaning that consumers can receive electricity from either their utility company or an independent energy supplier. If a consumer does not choose a provider, they will be automatically enrolled in a default plan with their utility company, which is referred to as the Price to Compare (PTC) or Standard Service Offer (SSO). The PTC/SSO rate varies by utility company and serves as a benchmark for consumers to compare when shopping for electricity plans.
The Public Utilities Commission of Ohio (PUCO) is the government agency that oversees rate-setting for utilities, reviews and approves every electric supplier in Ohio, and ensures that utility services are offered at fair prices. All electric generation suppliers must be certified by the PUCO. Certified Retail Electric Suppliers (CRES) are the only entities allowed to sell competitive electricity supply.
The major utility companies in Ohio include The Illuminating Company, Ohio Edison, and Toledo Edison. These companies deliver electricity to your home and are your default suppliers if you do not switch to a CRES.
There are several independent electricity suppliers in Ohio, including AEP Energy, APG&E, Atlantic Energy, Constellation, Public Power, Santanna Energy Services, SFE Energy, Think Energy, XOOM Energy, Discount Power Inc., and Energy Harbor. These suppliers offer a range of plans with different rate structures, such as fixed-rate and variable-rate plans.
When choosing an electricity provider in Ohio, it is important to understand the market and the key players involved. Consumers have the power to choose the electricity plan that best suits their needs, whether it is based on price, energy production methods, or other factors. By reviewing the Electricity Facts Label (EFL) of each plan and comparing rates, consumers can make informed decisions about their electricity provider.
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Fixed-rate vs. variable-rate plans
When choosing an electricity provider in Ohio, you'll come across two types of plans: fixed-rate and variable-rate.
Fixed-rate plans
Fixed-rate plans offer stability, allowing you to lock in a set rate per kilowatt-hour (kWh) for the duration of your contract, which typically lasts between 12 and 36 months. This means that even if market prices fluctuate, your rate will stay the same, providing a safety net for your electricity bills. Fixed-rate plans are a good option if you want predictable bills and protection from market volatility. They also offer budget certainty, as the rate you pay is the same every month, making it easier to manage your finances.
Variable-rate plans
Variable-rate plans, on the other hand, offer flexibility. The rate you pay is tied to market conditions and can change from month to month. These conditions include the weather, demand, and the price energy providers pay to buy electricity from power generators. While variable-rate plans can offer cheaper electricity during low-demand periods, such as mild weather, the cost per kWh can increase significantly during high-demand periods, making budgeting more challenging. Variable-rate plans are a good option if you're willing to take on some risk for the potential of lower rates during certain times of the year.
Choosing the right plan
The choice between a fixed-rate and variable-rate plan ultimately depends on your risk tolerance and desire for predictability. Review your energy usage patterns and budget, and consider using a free price comparison tool to compare different providers and plans. By entering your zip code and monthly electricity bill, you can find the lowest energy rates and the best plan for your needs.
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How to compare electricity rates
Ohio's deregulated energy market gives consumers the power to choose their electricity supplier and plan. This means that you can shop around for the best deal in the energy marketplace. However, this has also brought risks, with some companies onboarding customers with competitive rates and then raising prices considerably when contracts expire.
To compare electricity rates in Ohio, you should first audit your energy usage. You can then use a free price comparison tool, such as EnergyBot or ElectricityRates.com, to compare suppliers and plans. These tools will require you to enter basic information, such as your zip code, and in some cases, your monthly electricity bill. You can then compare dozens of top energy suppliers to find the lowest energy rate.
When comparing electricity plans, be sure to review the plan details, contract terms, and legal copy. Energy companies may entice you with a low rate, but the fine print may reveal that this is a variable rate, which is only applicable if you stay within a specific range of energy usage each month. It's also important to review the contract terms, cancellation fees, and other clauses before signing up for a new plan. Be aware that some plans may include an early termination fee if you decide to switch providers before the end of your contract.
The "Price to Compare" is the rate your local utility company charges for electricity supply. You can use this rate as a benchmark when comparing offers from other suppliers. If a supplier’s rate is lower than your utility’s Price to Compare, you could save money by switching. The Public Utilities Commission of Ohio provides the "Apples to Apples" tool, which lets you compare different electricity suppliers' rates, contract lengths, and other details.
To choose the best electricity provider, you should consider factors such as pricing, contract terms, customer service, and the availability of renewable energy options.
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Choosing a green energy plan
When it comes to choosing an electricity provider in Ohio, consumers have a lot of choices. The state's electricity market is deregulated, meaning that consumers can receive electricity from either their utility or an independent energy supplier. If they don’t choose a provider, they’ll be automatically enrolled in a default plan with their utility, known as the Price to Compare (PTC).
If you want to go green with your electricity plan in Ohio, you have the option to choose a renewable energy plan. When you select a renewable energy plan, your supplier will purchase renewable energy certificates (RECs) from qualified renewable energy generation facilities. Your supplier will then retire the RECs for the corresponding amount of power that you use, supporting solar, wind, and nuclear power projects in your area and across the country.
Before choosing a green energy plan, it is important to first implement methods to reduce your current energy consumption and make your home or business more energy efficient. Conducting an energy audit can help identify areas where you can improve, such as additional insulation, energy-efficient windows, and appliances.
Once you have made energy efficiency improvements, you can begin shopping for a renewable energy plan. You can compare renewable energy plans from reputable providers in Ohio on websites like ElectricityPlans.com and Choose Energy. These websites allow you to enter your zip code to find renewable energy plans available in your area.
When choosing a renewable energy plan, be sure to review the Electricity Facts Label (EFL) of any plan to understand the details before signing up. Consider the rate structure and how the supplier determines its electricity rates. Fixed-rate plans can help you budget your bills, as the rate remains constant for the duration of your contract, typically 12 to 36 months. Variable-rate plans, on the other hand, fluctuate monthly based on the market price of energy, resulting in higher bills during times of high energy demand.
In addition to comparing rates and suppliers, you can also utilize resources like Green Energy Ohio and Solar United Neighbors of Ohio, which provide information on certified installers and promote reputable companies. Your utility provider may also have programs and tools to help you analyze and assess the benefits of different renewable energy systems, ensuring that your choices align with your values and resources.
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Switching providers and contracts
Ohio's deregulated energy market gives consumers the freedom to choose their electricity provider. If you're renting or moving, you can choose a plan that suits your needs without worrying about lease or address mismatches. Most electricity providers allow you to transfer your contract to a new address within the same utility delivery area. Moving to a different utility area? You can terminate your contract without penalty.
The Ohio Customer Choice program and the Public Utilities Commission of Ohio (PUCO) provide valuable resources for making an informed decision. PUCO oversees rate-setting, consumer protection, and the approval of Certified Retail Electric Suppliers (CRES). Remember, your utility company is determined by your address and cannot be changed.
When switching providers, consider the type of energy plan you want. Fixed-rate plans offer a constant rate for 12 to 36 months, making budgeting easier, but they may incur early termination fees. Variable-rate plans fluctuate with the market price of energy, leading to higher bills during high-demand periods.
Several electricity providers offer competitive rates and unique features in Ohio. XOOM Energy, for instance, provides a wide range of products and plans, including renewable energy options. AEP Energy serves both the AEP Ohio territory and other competitive electricity markets in the state. APG&E offers affordable and flexible rates, while Atlantic Energy promotes sustainable living and smart home solutions.
You can also explore energy suppliers with specific focuses, such as Energy Harbor, which prioritizes safety, reliability, and sustainability by generating their own electricity. Discount Power Inc. is known for its low-cost, 100% renewable energy plans. Additionally, Public Power and Santanna Energy Services provide electricity and natural gas in deregulated areas of Ohio.
When signing up for a new provider, be prepared for potential deposit requirements, especially if you have a low credit score. No-deposit energy plans are also available for consideration. Remember to review the Electricity Facts Label (EFL) of any plan before committing.
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Frequently asked questions
PUCO stands for the Public Utilities Commission of Ohio. This government agency oversees rate setting for your utility, the Price to Compare (or SSO) and delivery rates. They also protect consumer interests.
A fixed-rate plan keeps your rate constant for the duration of your contract, typically lasting 12 to 36 months. A variable-rate plan means your Ohio electricity rate will fluctuate monthly based on the market price of energy.
Examples of electric providers in Ohio include AEP Energy, APG&E, Atlantic Energy, XOOM Energy, Discount Power Inc., and Energy Harbor.
The average electricity bill in Ohio is $144.73 per month, calculated by multiplying the average electric rate of 16.56 cents per kWh with the typical energy usage in Ohio, which is 874 kWh per month.
If you are moving within the same utility delivery area, most electricity providers allow you to transfer your electricity contract to the new address without penalty. If you are moving to a different utility area, you can terminate your electric supply contract without penalty.
