Ohio is one of the states where you get to choose your electricity supplier. If you live in Ohio and have never thought about switching providers, you could be missing out on better rates and plan options. Here is a straightforward look at how the Ohio electricity market works and what it means for you.
Ohio Is a Deregulated State
In 1999, Ohio passed Senate Bill 3, which deregulated the state's electricity market. This means that while your local utility still delivers electricity to your home through its poles and wires, you are free to choose which company actually supplies your electricity. The goal was to create competition among suppliers, which ideally leads to lower prices and better service for consumers.
Before deregulation, your utility handled everything: generation, delivery, and billing. Now, those functions are split. Your utility handles the delivery side, and a competitive retail electric supplier handles the generation, or supply, side of your bill.
Who Are the Major Utilities in Ohio?
Ohio has several utility companies that manage the physical infrastructure and deliver electricity. The largest include:
- Ohio Edison (a FirstEnergy company) serving northeast Ohio.
- The Illuminating Company (also FirstEnergy) serving the Cleveland area.
- Toledo Edison (also FirstEnergy) serving northwest Ohio.
- AEP Ohio serving central and southern Ohio, including Columbus.
- Duke Energy Ohio serving the Cincinnati area.
- Dayton Power and Light (AES Ohio) serving the Dayton region.
No matter which supplier you choose, your utility remains the same. They continue to maintain the lines, handle outages, and deliver electricity to your meter.
How Choosing a Supplier Works
When you shop for electricity in Ohio, you are comparing the supply portion of your bill. Each competitive supplier offers different rates, contract lengths, and plan features. Some offer fixed rates that lock in your price per kilowatt-hour for the length of the contract. Others offer variable rates that fluctuate with market conditions.
Once you choose a supplier, the switch happens automatically. There is no interruption to your service, no one needs to visit your home, and your utility continues to deliver the electricity as usual. The main change is on your bill, where you will see the supply charges coming from your chosen provider instead of the utility's default rate.
What Happens If You Do Not Choose a Supplier?
If you never select a competitive supplier, you stay on your utility's Standard Service Offer (SSO). The SSO rate is set through a competitive auction process overseen by the Public Utilities Commission of Ohio (PUCO). It is not necessarily the highest or lowest rate available, but it is the default. Many consumers find that they can do better by shopping around, especially when fixed-rate plans are available at competitive prices.
What Makes Ohio Different from Texas?
While both states offer electricity choice, the markets operate differently. Ohio is part of the PJM Interconnection, a large regional grid that spans multiple states. Texas operates its own independent grid through ERCOT. In Ohio, your utility still plays a central role in billing, whereas in Texas, your retail provider typically handles the entire customer relationship. Ohio also requires utilities to offer that default SSO rate, which provides a safety net that does not exist in the same form in Texas.
Tips for Shopping in Ohio
Start by checking your current rate on your utility bill. Then compare available plans from competitive suppliers on WattKarma. Look at the price per kilowatt-hour, the contract length, and whether there are any early termination fees. Pay attention to whether a rate is fixed or variable, and read the terms carefully before enrolling. Switching is free and takes just a few minutes, and it could save you real money on your monthly electricity costs.