Ohio Utility Rates Increase June 2023

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.

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