Ohio Electricity Rates: Your Guide to Savings

Ohio is one of just 14 states where you get to choose who supplies your electricity. That single fact could save you 20-40% on your generation charges — but most Ohioans have never taken advantage of it. The average residential rate in Ohio sits at 17.59-17.66 cents per kilowatt-hour in early 2026, translating to monthly bills between $135 and $149. Meanwhile, competitive suppliers are offering fixed-rate plans as low as 3.89 cents per kWh for the generation portion of your bill.

The gap between what you're paying and what you could be paying is enormous. If you're on your utility's default rate of 9-10 cents per kWh for generation and you switch to a plan under 5 cents, you could cut that piece of your bill roughly in half. On average Ohio usage of 846 kWh per month, that's real money — potentially $40-50 per month or more in savings.

This guide walks you through everything you need to navigate Ohio's deregulated electricity market: how the system works, what each utility charges, how to use the state's official comparison tool, and how to avoid the traps that catch uninformed shoppers.

How Ohio's Electricity Market Works

Ohio deregulated its electricity market in 1999 when the state legislature passed Senate Bill 3. The law split the old monopoly utility model into two distinct functions: generation (producing electricity) and distribution (delivering it to your home).

Here's the key distinction every Ohio consumer needs to understand:

• You can choose your generation supplier — the company that produces the electricity you use.
• You cannot choose your distribution utility — the company that owns the poles, wires, and meters delivering power to your home.

Your local utility handles delivery, billing, meter reading, and outage response no matter which generation supplier you pick. Switching suppliers does not affect your power reliability, your service quality, or the physical infrastructure connected to your house. The only thing that changes is the generation rate on your bill and who receives that portion of your payment.

If you do not actively choose a supplier, you receive electricity at the Standard Service Offer (SSO) rate. The SSO is set through a competitive bidding process overseen by the Public Utilities Commission of Ohio (PUCO). It is not necessarily a bad rate, but it is rarely the best available rate. The SSO generation rate is published as your Price to Compare (PTC) — the benchmark number you should use when evaluating supplier offers.

The PUCO regulates the entire market, certifies competitive retail electric service (CRES) providers, and operates the Apples to Apples comparison tool at energychoice.ohio.gov. If you ever have a complaint about a supplier or utility, PUCO's consumer hotline is 1-800-686-7826.

What Ohioans Actually Pay

Let's ground this in real numbers. The average Ohio household uses about 846 kWh per month and pays between $135 and $149 for electricity. That puts Ohio slightly below the national average rate of 17.78 cents per kWh, ranking it the 33rd lowest-priced state in the country. The national average monthly bill runs about $163, so Ohio residents are paying roughly $14-28 less per month than the typical American household.

But those averages mask significant variation depending on your utility territory and whether you've shopped for a supplier.

Rate Trends: Why Bills Are Rising

Ohio electricity rates have been on a roller coaster. Between October 2021 and October 2022, rates spiked roughly 19.5%, climbing from 17.9 to 21.4 cents per kWh. Rates came down from that peak through 2023 and 2024, settling around 16.06 cents per kWh in 2025. Then a new wave of increases hit.

The culprit: PJM Interconnection capacity cost increases. Ohio is part of the PJM regional transmission organization, which runs capacity auctions to ensure enough power plants exist to meet future demand. The 2025-2026 auction results pushed capacity costs up by approximately 2 cents per kWh — a 10-15% increase that gets passed directly through to your bill. Growing electricity demand from data centers (especially in central Ohio) and broader electrification trends are putting upward pressure on these capacity prices, and they are unlikely to decrease soon.

The long-term trajectory is clear: average monthly bills have climbed from $107 in July 2015 to $139 in July 2025. Understanding how to shop for cheaper generation rates is no longer optional — it's a financial necessity.

Your Bill, Broken Down

Every Ohio electricity bill contains four main charge categories:

Charge	What It Covers	Can You Shop It?
Customer Charge	Fixed monthly fee for billing, meter, service line	No
Generation Service	Per-kWh charge for producing electricity	Yes
Transmission Service	Per-kWh charge for high-voltage delivery to substations	No
Distribution Service	Per-kWh charge for local delivery to your home	No

The generation charge is the only piece you control through supplier choice. It is also typically the largest single component, which is why switching suppliers can produce meaningful savings. For a detailed walkthrough of each line item, check out our guide on how to read your electric bill and spot overcharges.

Beyond these four categories, your bill may include utility-specific riders — surcharges with cryptic codes like AMI, DCR, DMR, DSE, DUN, PUR, and USF. Transmission riders have been a major source of recent rate increases. AEP Ohio, for example, added a new transmission rider in 2025 that costs the typical customer approximately $7.90 per month.

How to Find the Cheapest Plan

Ohio's official comparison tool is the PUCO Apples to Apples website at energychoice.ohio.gov. It lists offers from over 70 certified suppliers across all four major utility territories. Here's how to use it effectively:

Step 1: Find your Price to Compare. Look at your current electricity bill for the "Price to Compare" or check your utility's website. This is your benchmark — any supplier offer below this number saves you money on generation charges. Current PTCs by utility:

Utility	Price to Compare	Territory
AEP Ohio	9.8 cents/kWh	Central and southern Ohio (Columbus, Akron)
Ohio Edison (FirstEnergy)	9.11 cents/kWh	Northeast and north-central Ohio
The Illuminating Company (FirstEnergy)	9.11 cents/kWh	Northeast Ohio (Cleveland)
Toledo Edison (FirstEnergy)	9.11 cents/kWh	Northwest Ohio (Toledo)
Duke Energy Ohio	10.2-10.4 cents/kWh	Southwest Ohio (Cincinnati)
AES Ohio	9.45 cents/kWh	Dayton area

Step 2: Visit energychoice.ohio.gov and enter your utility. The Apples to Apples tool lets you filter by fixed-rate, variable-rate, or green energy plans. Focus on fixed-rate plans first.

Step 3: Compare generation rates to your PTC. With competitive fixed-rate plans available as low as 3.89 cents per kWh in April 2026, the savings potential is substantial. On 846 kWh of monthly usage, switching from a 9.8-cent PTC to a 5-cent fixed rate would save about $40 per month — nearly $500 per year.

Step 4: Read the full contract terms. Check the contract length (typically 6, 12, or 24 months), early termination fees, and any conditions that could change your rate. Ohio law gives you a 7-day cancellation window on new contracts, so you have a brief safety net if you change your mind.

Step 5: Enroll online with your chosen supplier. You'll need your utility account number from your bill. The enrollment process takes about 5 minutes, and the switch completes in 1-2 billing cycles with zero service interruption.

Step 6: Set a calendar reminder. Mark the date your contract expires so you never get rolled onto a more expensive default plan. Shop again 4-6 weeks before expiration.

Ohio's Major Utilities Compared

Even though you're shopping for a generation supplier, your distribution utility still determines a large portion of your bill and your service experience. Here's how Ohio's four major utilities stack up:

AEP Ohio (American Electric Power)

AEP Ohio serves 1.5 million customers across 61 counties in central and southern Ohio, including the Columbus and Akron areas. Their 2025 Price to Compare sits at 9.8 cents per kWh for generation. While their generation supply rate actually dropped recently, a new transmission rider adds approximately $7.90 per month, resulting in a net increase of $0.80 to $7.90 depending on your usage tier.

AEP's territory is experiencing significant demand growth from data center construction in central Ohio. PUCO approved a new tariff specifically for data center customers to protect residential ratepayers from bearing those infrastructure costs.

AEP offers a Power Rewards smart thermostat program with a $100 rebate — worth combining with a supplier switch for maximum savings. For our recommendations on which thermostats deliver the best energy savings, see our smart thermostat guide.

FirstEnergy Ohio (Ohio Edison, The Illuminating Company, Toledo Edison)

FirstEnergy operates three subsidiaries serving approximately 2 million customers across northern Ohio. Ohio Edison covers the northeast and north-central region (1+ million customers), The Illuminating Company serves the Cleveland area (700,000+ customers), and Toledo Edison handles northwest Ohio around Toledo (300,000+ customers).

The FirstEnergy Price to Compare runs about 9.11 cents per kWh. A supply charge increase of approximately $3.00 per month took effect in March 2026, though most customers received about $65 in bill credits spread over three months as part of a grid modernization settlement.

FirstEnergy is in the middle of Grid Mod II, a $421 million, four-year plan deploying 1.4 million smart meters. Installations began in April 2025 and should complete by 2027. Smart meters enable automated readings, faster outage detection, and could eventually support time-of-use rate structures. If you're curious about how time-varying rates work and whether they could lower your bill, read our guide on time-of-use electricity rates.

There's a significant concern in FirstEnergy territory: reliability has declined. Average outage duration reached 12.8 hours as of mid-2025, a 60% jump from 2022. FirstEnergy is actually seeking PUCO approval for looser reliability standards — asking for longer allowed restoration times. Consumer advocates are pushing back hard.

Duke Energy Ohio

Duke Energy serves approximately 840,000 customers in southwest Ohio, primarily the Greater Cincinnati area. Their Price to Compare is the highest among Ohio's major utilities at 10.2-10.4 cents per kWh — a 50% jump since 2023. That higher PTC actually means more potential savings from switching, since the gap between the default rate and competitive supplier rates is wider.

Bills in Duke territory are expected to remain largely stable through spring 2026, but broader regional price increases are anticipated for summer.

AES Ohio (formerly Dayton Power & Light)

AES Ohio serves 527,000 customers in the Dayton area (Montgomery, Greene, Clark, and Miami counties). Their Price to Compare for June 2025 through May 2026 is 9.45 cents per kWh, up from 8.58 cents the previous year. Bills are expected to stay relatively stable through April 2026.

Hidden Fees and Traps to Avoid

Ohio's deregulated market offers genuine savings, but it also creates opportunities for consumers to get burned. Here are the biggest pitfalls:

Variable rate volatility. Variable-rate plans fluctuate monthly based on wholesale market conditions. They might look attractive when rates are low, but they carry serious risk. During the 2024 polar vortex, some Ohio customers on variable rates saw their bills triple in a single month. Unless you're comfortable with that kind of exposure, stick with fixed-rate plans.

Introductory teaser rates. Some suppliers lure you in with a low introductory rate that jumps significantly after the promotional period. Always check what happens to your rate after the intro period ends, and set a reminder to re-evaluate before the change kicks in.

Early termination fees. Fixed-rate plans often carry early termination fees if you cancel before the contract expires. These are standard, but they vary widely. Know your ETF before you sign. In some cases, the savings from switching to a much cheaper plan still outweigh the penalty — do the math.

Misleading "green" plans. Some plans marketed as renewable use Renewable Energy Certificates (RECs) rather than being powered by direct renewable generation. RECs are a legitimate mechanism, but if you're paying a premium for a green plan, understand what you're actually getting.

Riders and surcharges you did not expect. Utility-specific riders can add meaningful costs to your bill that have nothing to do with your supplier choice. AEP Ohio's transmission rider adding $7.90 per month is a prime example. These charges apply regardless of which generation supplier you choose.

Forgetting to re-shop. The single most expensive mistake Ohio consumers make is letting a good fixed-rate contract expire without shopping for a new one. When your contract ends, you'll typically revert to the utility's SSO rate or a supplier's default variable rate — both of which are almost certainly higher than what you could find by shopping. Treat your contract expiration date like a bill due date.

Renewable Energy Options in Ohio

Ohio's renewable energy landscape is evolving, though it lags behind states like Texas in both generation capacity and consumer incentives.

Net Metering

Ohio requires investor-owned utilities to offer net metering for residential solar systems sized up to 120% of your average yearly usage. Municipal utilities and rural co-ops set their own policies, and some do not offer net metering at all. PUCO approved revised net metering rules in 2022 that reduced compensation rates for solar customers, and further changes may be coming as regulators consider a shift to net billing.

Solar Incentives in 2026

The solar incentive picture has changed significantly. The federal 30% residential clean energy tax credit (Section 25D) expired for expenditures after December 31, 2025. This is a major development for anyone considering solar in 2026 — the economics are notably less favorable without that federal credit.

Ohio does provide a property tax exemption for the added value of solar equipment, and homeowners earn Solar Renewable Energy Credits (SRECs) worth approximately $3 each per 1,000 kWh generated. However, Ohio's SREC values are quite low compared to other states. There is no state-level solar rebate program.

Ohio's Renewable Portfolio Standard mandates 8.5% of electricity from renewable sources by 2026, with a 0.5% solar carve-out. The standard is set to plateau in 2026, and the future of these mandates is uncertain.

Community Solar: Coming Soon?

Ohio currently has no community solar program, which means renters and homeowners with unsuitable rooftops have limited options for accessing solar energy. However, that may be changing. HB 303, the Community Energy Act, passed the Ohio House in November 2025 with overwhelming bipartisan support (77-8 vote). The bill would create a 1.5 GW pilot program with statewide capacity of 1,500 MW over four years, including 500 MW reserved for distressed sites like brownfields and abandoned mines.

As of April 2026, the bill awaits Senate action. If it passes, Ohioans would be able to subscribe to local solar projects and receive bill credits — a model that has worked well in other states. To understand how community solar works and whether it might be right for you, read our guide on community solar.

Green Energy Plans from Competitive Suppliers

Even without rooftop solar, you can support renewable energy through green electricity plans available on the Apples to Apples tool. These plans use RECs to match your usage with renewable generation. Some carry a slight premium over conventional plans, while others are price-competitive. Filter for green energy plans on the Apples to Apples tool to see your options.

If you're exploring a broader strategy for reducing your home's energy footprint, our whole-home electrification guide covers the full roadmap from heat pumps to induction cooking. And if backup power during outages is a priority — especially relevant given FirstEnergy's reliability trends — see our guide on the best solar batteries for home backup.

Grid Reliability and What's Changing

Ohio's electricity grid is part of PJM Interconnection, the regional transmission organization that coordinates power delivery across 13 states and the District of Columbia. Unlike Texas's isolated ERCOT grid, PJM is connected to the broader Eastern Interconnection, which means Ohio can import and export power across state lines during stress events. That's a meaningful reliability advantage.

Still, local reliability varies significantly by utility territory.

FirstEnergy's Reliability Problem

The most pressing concern is in FirstEnergy's territory across northern Ohio. Average outage duration hit 12.8 hours in mid-2025 — a 60% increase from 2022 levels. Rather than committing to faster restoration, FirstEnergy is seeking PUCO approval for looser reliability standards. Consumer advocates, the Ohio Consumers' Counsel, and many legislators oppose this move.

The Grid Mod II smart meter deployment should help over time by enabling faster outage detection and more accurate restoration estimates. But 1.4 million smart meters do not fix aging infrastructure overnight. If you're in FirstEnergy territory, having a backup plan for extended outages is prudent.

AEP Ohio and Data Center Demand

Central Ohio is experiencing a boom in data center construction, driving significant demand growth in AEP's territory. PUCO approved a new tariff ensuring data center operators bear their fair share of infrastructure costs, but the broader build-out of transmission infrastructure will take years and could affect rates through construction-related riders.

PJM Capacity Cost Pressures

The PJM capacity auctions that determine future capacity costs have been trending higher. The 2025-2026 increases of approximately 2 cents per kWh reflect growing demand across the region and the retirement of older generation assets. These costs are passed through to all Ohio customers regardless of their chosen supplier. Capacity cost pressures are likely to persist as electrification increases demand and aging plants continue to retire.

A home energy monitor can help you understand exactly where your electricity goes and identify opportunities to reduce consumption — particularly valuable as rates continue their upward trend.

Energy Assistance Programs

If you're struggling with electricity costs, Ohio offers several programs that can help.

PIPP Plus (Percentage of Income Payment Plan) caps your monthly electricity payment at a percentage of your household income — typically 6% for electric heating customers or 10% for non-electric heating. Make your payments on time and in full, and you'll earn incentive credits that forgive the remainder of each month's billed amount. After 24 consecutive on-time payments, any old debt can be fully forgiven.

HEAP (Home Energy Assistance Program) provides a one-time credit applied directly to your utility bill to help cover heating costs. The 2025-2026 program year runs from July 2025 through May 2026. Income eligibility is set at or below 175% of Federal Poverty Guidelines. Apply at energyhelp.ohio.gov.

HWAP (Home Weatherization Assistance Program) helps improve your home's energy efficiency through measures like insulation, air sealing, and furnace repair or replacement. The program has approximately $15.7 million in funding. Income eligibility ranges from 175-200% of Federal Poverty Guidelines.

Winter Crisis Program provides emergency assistance for households facing utility disconnection during winter months, typically available November through March.

To get started with any of these programs, visit energyhelp.ohio.gov or contact your local Community Action Agency. The Ohio Consumers' Counsel (occ.ohio.gov) also provides free consumer advocacy services.

For practical steps you can take right now to reduce consumption — regardless of income level — our guide on how to cut your electric bill in half covers the highest-impact strategies.

Frequently Asked Questions

How do I know if I can choose my electricity supplier?

If you're served by one of Ohio's four major investor-owned utilities — AEP Ohio, FirstEnergy (Ohio Edison, The Illuminating Company, Toledo Edison), Duke Energy Ohio, or AES Ohio — you can shop for a competitive generation supplier. Most Ohio residents fall into one of these territories. If you're served by a municipal utility or rural electric cooperative, your options may be limited. Check energychoice.ohio.gov to confirm.

What is the Price to Compare and where do I find it?

The Price to Compare (PTC) is the generation rate you're currently paying under your utility's Standard Service Offer. It appears on your monthly electricity bill and on your utility's website. Any competitive supplier rate below your PTC will save you money on the generation portion of your bill. Current PTCs range from 9.11 cents per kWh (FirstEnergy) to 10.2-10.4 cents per kWh (Duke Energy).

Will I lose power or experience interruptions if I switch suppliers?

No. Your local utility continues to deliver electricity to your home regardless of which generation supplier you choose. The switch happens on the billing side only. It takes 1-2 billing cycles to complete, and there is zero service interruption. If you ever experience an outage, you still call your local utility — not your generation supplier.

Can I switch back to my utility's default rate?

Yes. You can return to the Standard Service Offer at any time. If you're under contract with a competitive supplier, you may owe an early termination fee, but there is no penalty for returning to the SSO itself. Ohio's 7-day cancellation window also applies to new supplier contracts, giving you a brief grace period after enrolling.

Are variable-rate plans worth the risk?

For most households, no. Variable rates fluctuate monthly based on wholesale market conditions, and the swings can be severe. During the 2024 polar vortex, some Ohio customers on variable plans saw bills triple. Fixed-rate plans provide price certainty for the contract term and protect you from market spikes. The only scenario where variable rates make sense is if you're in a very short-term living situation and do not want to commit to a contract.

Why did my bill go up even though I did not change anything?

Several factors outside your control can increase your bill. PJM capacity cost increases added approximately 2 cents per kWh to rates in 2025-2026. Utilities have added transmission riders — AEP Ohio's adds about $7.90 per month. Seasonal usage changes also play a role: heating in winter and cooling in summer drive higher consumption. Check our guide on how to read your electric bill and spot overcharges to decode exactly what's driving your costs.

What help is available if I cannot afford my electric bill?

Ohio offers several assistance programs. PIPP Plus caps your payment at a percentage of income and can forgive old debt. HEAP provides a one-time bill credit. The Winter Crisis Program helps households facing disconnection. HWAP can improve your home's efficiency to lower future bills. Start at energyhelp.ohio.gov or call your local Community Action Agency.

Is rooftop solar still worth it in Ohio without the federal tax credit?

The economics are tighter in 2026 now that the 30% federal tax credit has expired. Ohio's SRECs are worth only about $3 each, and there is no state rebate program. However, the property tax exemption still applies, and solar panel costs continue to decline. Whether it pencils out depends on your specific roof, utility rate, and how long you plan to stay in your home. Net metering is available from investor-owned utilities for systems up to 120% of your annual usage.

Your Ohio Electricity Action Plan

Here's a step-by-step plan you can execute this week to start saving:

Today (15 minutes):

1. Pull out your most recent electricity bill. Find your utility name, account number, monthly kWh usage, and your Price to Compare.
2. Note your current generation rate. If you've never switched suppliers, it's the SSO rate shown as your Price to Compare.

This week (30 minutes): 3. Go to energychoice.ohio.gov and select your utility territory. Filter for fixed-rate plans. 4. Compare the top 5-10 offers against your Price to Compare. Focus on plans with 12-month terms for the best balance of rate and flexibility. 5. Read the contract terms for your top 2-3 choices. Check for early termination fees, rate guarantees, and what happens when the contract expires. 6. Verify the supplier is PUCO-certified and check online reviews for billing accuracy and customer service quality.

Before you enroll (10 minutes): 7. Calculate your estimated annual savings. Take the difference between your current generation rate and the new rate, multiply by your average monthly kWh usage, and multiply by 12. On 846 kWh per month, switching from a 9.8-cent PTC to a 5-cent fixed rate saves about $488 per year. 8. Enroll online with your chosen supplier. You'll need your utility account number. The process takes about 5 minutes.

After you switch: 9. Monitor your first two bills to confirm the new rate is reflected correctly. 10. Set a calendar reminder 6 weeks before your contract expires so you can shop again and avoid rolling onto an expensive default rate. 11. Check whether your utility offers a smart thermostat rebate — AEP Ohio offers $100, and FirstEnergy has a PUCO-approved program. Pair a smart thermostat with your lower rate for maximum savings. 12. Consider a home energy monitor to track your usage in real time and identify additional opportunities to cut consumption.

Ohio's deregulated electricity market puts real power in your hands — but only if you use it. The difference between passively accepting your utility's default rate and actively shopping for a competitive supplier can easily amount to $400-600 per year. That money is sitting on the table right now. All it takes is 30 minutes on the Apples to Apples tool to claim it.