ohio utility rates increase june 2023

Ohio Utility Rates Increase June 2023

  • Written By: Kelly Bedrich

  • Ohio utility rates increased dramatically in June 2023. Residents and business owners can shop for competitive suppliers and potentially save big on their electricity bills. Below you can find current utility rates in Ohio and how to shop.

    Ohio Utility Rates Increase June 2023

    The utilities in Ohio set their Standard Service Offer (SSO) by holding a series of wholesale electricity competitive auctions. These auctions are held between September and April to procure your power. Your rate is the weighted average of the winning bids in these auctions.

    Unfortunately, when the utilities held auctions in Fall 2022, it was during some of the highest wholesale electricity prices that we’ve seen in recent years.

    Our recommendation: Lock in a fixed rate with an alternate supplier for 12 months. You’ll pay less than your utility’s Standard Service Offer.

    Here are the SSO residential rates that took effect June 1, 2023.

    • Ohio Edison rates increased from 5.8766¢ per kWh to 12.394065¢ per kWh, a 110% increase
    • Toledo Edison rates increased from 5.9383¢ per kWh to 12.4065¢ per kWh, a 109% increase.
    • The Illuminating Company rates increased from 5.9039¢ per kWh to 12.4¢ per kWh
    • AEP Ohio rates increased from 7.49¢ per kWh to 11.84478¢ per kWh.
    • Duke Energy rates increased from 6.44¢ per kWh to 10.1712¢ per kWh.
    • AES Ohio rates dropped from 10.91017¢ per kWh to 10.80709¢ per kWh.

    There’s also a price adjustment in September to reflect the winter season, plus quarterly reconciliations in January, April, July and October.

    Current Ohio Utility Rates

    Speaking of quarterly reconciliations and Ohio utility rate adjustments, here are the latest Standard Service Offer Rates as of October 2023.

    • Ohio Edison rates adjusted from 12.394065¢ per kWh to 10.6¢ per kWh.
    • Toledo Edison rates adjusted from 12.4065¢ per kWh to 9.802¢ per kWh.
    • The Illuminating Company rates adjusted from 12.4¢ per kWh to 9.6¢ per kWh.
    • AEP Ohio rates rose from 11.84478¢ per kWh to to 11.2¢ per kWh.
    • AES Ohio rates remain at 10.80709¢ per kWh.

    As you will see below, you can save from 30-50% vs. these utility rates by shopping for a supplier.

    Shop Supplier Rates in Ohio

    Compare Supplier Rates for The Illuminating Company (Cleveland)

    Plan Name Term Rate/kWh
    Constellation 18 Month Home Power Plan 18 5.49 ¢
    Constellation 36 Month Home Power Plan 36 5.99 ¢
    Public Power Electric 12 Month Fixed 12 6.39 ¢
    Energy Harbor Safe Harbor 10 10 6.39 ¢
    Direct Energy Live Brighter 12 12 6.69 ¢
    Direct Energy Live Brighter 13 13 6.69 ¢
    Public Power Electric 15 Month Fixed 15 6.69 ¢
    Santanna Energy Services Preferred 12 Month 12 6.77 ¢
    Energy Harbor Safe Harbor 20 20 6.79 ¢
    Direct Energy Live Brighter 18 18 6.99 ¢
    Energy Harbor Safe Harbor 32 32 6.99 ¢
    XOOM Energy SureLock 12 12 7.69 ¢
    XOOM Energy SimpleClean 12 12 7.99 ¢
    XOOM Energy RescueLock 12 12 7.99 ¢
    Direct Energy Go Green Lights 24 24 8.89 ¢

    Compare Supplier Rates for AEP Ohio (Columbus)

    Plan Name Term Rate/kWh
    Energy Harbor Safe Harbor 10 10 6.39 ¢
    Santanna Energy Services Preferred 12 Month 12 6.49 ¢
    Energy Harbor Safe Harbor 20 20 6.69 ¢
    Direct Energy Live Brighter 12 12 6.79 ¢
    Public Power 12 Month Fixed 12 6.79 ¢
    Direct Energy Live Brighter 13 13 6.79 ¢
    Constellation 36 Month Home Power Plan 36 6.99 ¢
    Direct Energy Live Brighter 18 18 7.09 ¢
    Public Power 15 Month Fixed 15 7.09 ¢
    Energy Harbor Safe Harbor 32 32 7.09 ¢
    XOOM Energy SureLock 12 12 7.69 ¢
    Constellation 18 Month Home Power Plan 18 7.79 ¢
    XOOM Energy SimpleClean 12 12 7.99 ¢
    XOOM Energy RescueLock 12 12 8.09 ¢
    Direct Energy Go Green Lights 24 24 8.99 ¢

    How Can Suppliers Offer Lower Rates than Ohio Utilities?

    Here’s the problem with the utility auction process. It’s backwards-looking. Your rate is set based on what electricity cost in the past. It’s based on what your utility already paid for its power last year.

    Suppliers buy prices in the forward-looking market. Natural gas prices have fallen significantly since January. Wholesale electricity prices typically follow natural gas costs. And right now, electricity prices look great.

    That means, while the utility is stuck charging you last year’s expensive prices? Suppliers can give you a rate that reflects the lower electricity rates for 2023 and 2024.

    Shop for a Supplier to Get Lower Electric Rate in OH

    With deregulation, you don’t have to buy your electricity from the utility. You don’t have to pay the high Standard Service Offer (also called the Price to Compare.)

    Instead, you can compare your SSO rate against competitive offers from licensed alternate suppliers.

    You can shop for residential electricity rates in Ohio and business electricity rates in Ohio. Just enter your zip code to get started.

    New to electricity shopping? Read our article on how to shop for electricity in Ohio

    About Kelly Bedrich

    Kelly Bedrich co-founded ElectricityPlans in 2016 with the goal of simplifying the complicated process of buying energy. As president and chief technology officer, Kelly keeps our development team focused on providing a user-friendly website. When not reading the latest on technology and finance, Kelly enjoys celebrating Taco Tuesday, listening to live music at local venues, and hiking.

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