General Information on Ohio Electricity Rates
Ohio primarily uses natural gas to generate electricity that’s provided by various gas suppliers in the state. Some energy companies use coal and crude oil, while others focus on renewable energy, offering renewable energy plans. However, green energy plans tend to have a higher per kilowatt-hour (kWh) rate.
For all Ohio residents, your electricity bill is divided into two categories – supply and delivery services.
Supplier services include the generation of electricity. The electric rates of electricity suppliers depend on the cost of electric generation, and that depends on the method of generation. There are various suppliers in the Ohio area; for example, you might find different suppliers in Columbus, Cincinnati, Cleveland, and other cities and counties.
All energy suppliers offer different plans and rates, and you can learn more about Ohio electric rates and charges on EIA’s website. The primary charges include the price per kilowatt-hour, cancellation fees, early termination fees, among other things.
Your local utility company provides energy delivery services. The electric utilities company delivers your electricity, manages power lines, and handles power outages.
Delivery charges include the transmission service, distribution service, customer charge, and various ‘Rider’ charges. Ohio utilities include AEP Ohio (American Electric Power), Dayton Power & Light, Duke Energy Ohio, Ohio Edison, Toledo Edison, Ohio Power, and the Illuminating Company.
Energy Deregulation and How It Affects Ohio Electricity Rates
Energy deregulation in Ohio allows all business and residential customers to choose their energy suppliers. You’ll find several energy companies offering plans with varying electricity rates.
Due to the energy market, energy customers have seen a rapid reduction in overall energy rates. In Ohio, some companies offer rates below the national average.
If you don’t choose an energy supplier, you will receive the default rate by your local utility company. The default rate is also your Price to Compare and is regulated and approved by the Public Utilities Commission of Ohio (PUCO).
You can use the default rate to compare the rates offered by other energy suppliers and find the best rate for you. You can use the Apples to Apples tool by PUCO to compare the rates.
Finding the Best Ohio Electricity Rates
All Ohio customers can choose from a variety of energy suppliers and choose the best energy plan for them. Some companies offer low rates; others offer benefits with slightly higher rates.
You can compare each company’s plans and rates and make an informed decision. You can search and try to shop for rates yourself, but watch out for the fine print, hidden fees, and escalating rates once your term ends.
Alternatively, you can use Arbor’s free TrueRate Protection service to automatically find and switch to the best Ohio electricity rates in your area.
Arbor scans the market and gives you the best rates you can get in your service area. When your contract term is expiring, Arbor finds the best rate and switches you again. You always pay the best rate and never have to worry about overpaying for electricity ever again.
You can also use the free savings calculator to find out how much you could save in each case.
Understanding Ohio Electricity Rates and Plans
Each energy company offers different plans with varying rates, plan lengths, and benefits. You can easily compare and switch to another supplier.
Get a copy of your current electric bill to check who’s your current electricity supply company and what rate you’re getting. You can use Arbor to find the best rate in your area and switch to the lowest cost supplier quickly to save time.
You can use Arbor to find the best rate in your area by using our free savings calculator.
Furthermore, you will find different types of energy options depending on the companies. These are the four plan options you’ll find in Ohio.
- Fixed-Rate Plans: Such plans let customers pay the same rate throughout their contract, despite changes in the wholesale electricity rates. We recommend fixed-rate plans because they provide price certainty and minimize risk. But be careful: when your term expires, your rate becomes variable and can go up without notice. Arbor automatically keeps you on the best fixed-rate plan, so you don’t have to worry about rate hikes at the end of your term.
- Variable-Rate Plans: Variable-rate plans fluctuate your monthly rate depending on the energy market. While you may be paying less when demand is low, you may end up paying above the default rate during high demand.
- Renewable Energy Plans: Some companies offer green energy plans that help you reduce your carbon footprint. The plans can either be fixed or variable.
- Prepaid Plans: You can pay for your electricity beforehand and avoid credit checks or deposits.
Some plans may ask you for a deposit. However, plans available through Arbor never require a deposit.
How to Choose the Right Energy Supplier
Depending on where you live, you’ll have a different local utility provider; however, you can choose among various electric suppliers. You can use the default rate (Price to Compare) to see what company is offering the best plan for you.
You should consider the plan that provides the most savings and benefits.
You can also check out how you can save on your energy bill with your local utility company. But electricity is complicated, which is why people trust Arbor to manage their electricity service for them, so they always pay the best electricity rate available in Ohio.