Uncover the Truth Ohio Hides about Your Electric Rates
Power to Choose

Uncover the Truth Ohio Hides about Your Electric Rates

24 Aug 20225 mins to read


People use the words energy choice when they talk about energy deregulation. Energy deregulation is the process of integrating competition in the wholesale energy market and allowing Ohio electric suppliers to buy electricity at low prices and tailor individual plans for their consumers. As a result, homeowners and business owners can choose an electric supplier or a personal electricity plan and adjust it according to their needs. Energy deregulation prevents monopoly and improves competition, benefiting the end consumer who receives the best Ohio electric rates and uses his power of choice.

Do You Know These Facts about Energy Choice in the USA?

  • From the start, the energy industry was fully regulated, and in 1932 around 8 companies owned 73% of electricity in the US.
  • In 1935, Congress passed the PUHCA (Public Utility Holding Company Act) to stop the increased monopoly and initiate regulated protocols in the energy market.
  • When the energy crisis hit in 1970 and the oil embargo in 1973 changed the lives of Americans, the USA built power plants that relied on its natural resources - coal and uranium. The exorbitant prices for their construction were passed to consumers who saw shocking electric prices on their bills. They couldn’t even dream about having an electric choice and switching their electricity supplier.
  • With the implementation of the Energy Policy Act in 1992, the energy wholesale market started to be competitive, and the first deregulation policies would emerge for the public.
  • In 2022, 26 states deregulated their energy or gas market, and thousands of consumers used their energy choice to get lower prices on their monthly bills.

Deregulation was the first form of managing electricity from the time the first power plant was built in America. The lesson is obvious - consumers should have the power to choose their electricity provider.

Does Ohio Electric Choice Work for Everyone?

Until 1998, Ohio's utilities owned 91% of the energy market. Things changed in 1999 when the Electric Restructuring Legislation introduced electricity restructuring in Ohio. Initially, only a few people chose to switch their electricity providers, and the ones who did, received a 5% reduction in residential rate for the next 5 years.

Since 2009, after authorizing many energy regulations, the Public Utilities Commission of Ohio has approved all electric rates and guaranteed consumers a fair price - which increased competition between electric suppliers and gave more choices to consumers.

The Average Ohio Electric Rates in 2022

According to the U.S. Energy Information Administration, the energy rates in Ohio in 2022 are the following:

Residential:    13.18 cents/kWh

Commercial:  10.40 cents/kWh

 

The energy sources of utility energy generation:

Petroleum-Fired:       0.1%

Natural Gas-Fired:   49.5%

Coal-Fired:               30.1%

Nuclear:                    13.1%

Renewables:              5.7%

 

The energy sources for home heating:

Natural Gas:   65.0%

Fuel Oil:           2.0%

Electricity:      24.7%

Propane:         5.4%

Other/None:    2.9%

Energy Facts about Ohio:

  • Ohio is in the top 10 states for total energy consumption.
  • Ohio has 7% of U.S. natural gas reserves.
  • Ohio has 2 power plants that supply 15% of electricity for the country, making it one of the leading 6 electricity producers in the USA.
  • In 2019, Ohio implemented a law requiring 8,5% of retail electricity sales to come from renewable energy sources by 2026, and consumers have the choice to apply for tax credits.

How Does Electricity Come to Your House in Ohio?

Until you get electricity at home, it follows the following path:

1) Generation - most electricity in the country is generated by coal, natural gas, nuclear energy, coal, and renewable energy. 

2) Transmission - once the electricity is generated, it is transmitted from the power plants through high-voltage lines to the local distribution network.

3) Distribution - at this point, the electricity is distributed through low-voltage lines to your home.

4) Consumption - you use the energy and pay the bill to your utility or chosen Ohio electric supplier.

What is the Role of Your Ohio Electric Supplier?

In the past, utilities were publicly owned and were a one-stop shop for everything energy-related, starting with electricity generation, distribution, billing, solving disputes, and much more. Consumers in Ohio had no choice in switching their electric supplier. Once deregulation came into the country, the whole system changed.

Today, a supplier buys electricity and gas from generators and sells them to consumers at a better price. Even more, an energy supplier in Ohio creates competition and can tailor different plans with better electric rates for consumers. This way, your electricity is still transmitted and distributed by the local utility, but the actual supply comes from your chosen energy provider. This is why your energy choice is important in Ohio.

What Are the Benefits Ohio Hides About Your Electric Choice?

  • You can save energy. Deregulation has saved people in Ohio $23.9 billion since 2011. While utilities provide nonnegotiable rates, switching to an electric supplier will give you a choice to get a better deal with customized terms, such as price, early cancelation fees, plan length, renewable energy sources, and others, which means you will get the best Ohio electric rates.
  • You don't experience service interruption. When you switch your Ohio electric supplier, it will make the necessary changes for you by contacting the local utility to make the switch. This way, you won't undergo any connection problems and can continue using electricity for your home.
  • You can opt for a renewable energy source. Multiple Ohio electric suppliers provide plans based on renewable energy resources. By choosing green energy, you can contribute to reducing your carbon footprint and be a part of the USA’s net-zero policy.
  • You get better service. An energy supplier will provide valuable services to their customers to survive the competition. You get fast assistance, lower Ohio electric rates, and better 24/7 customer support than your utility delivers.
  • You have the power to choose. Forget about monopoly prices and unfairness - today, you are the one who decides which electricity plan is best for your home and business. You can choose the most suitable energy provider on the market and make the Ohio electric choice work for you!

What Types of Plans Can You Get in Ohio?

  • Fixed-rate plans. The plan will have a fixed price that won't change during the contract's time. If an energy crisis strikes the country and prices skyrocket, your home will be secure.
  • Variable plans. These contracts are flexible because the energy rates will follow the price changes in the wholesale energy market. On the one hand, if prices rise, your bill is higher. But on the other hand, in Ohio, you will get lower electric bills when prices go down.
  • No-deposit and prepaid energy plans. Usually, an electric supplier will check your credit score and ask for a deposit before starting a plan. With no-deposit contracts, you avoid credit checks and can even choose the prepaid option. You deposit money into your personal account, and the supplier uses it monthly to pay your bill.
  • Green energy plan. As discussed above, several Ohio electric suppliers will have renewable electric plans. It’s important to make a green choice and reduce your carbon footprint.
  • Business plans. In today's energy crises, securing just your home in Ohio with tailored electric rates is not enough. That's why an energy supplier has reliable business energy plans, and you get to save money and electricity on your company's bills. 

How to Switch Your Ohio Electric Supplier?

Switching your energy supplier is a piece of cake. The process is even faster and straightforward with Energy5.

  1. Access Energy5 and compare providers and prices in your area.
  2. Review the plan details and select the one that suits you best.
  3. Upload recent bills to show your provider your average monthly electricity usage.
  4. Request a customized price for your house/ business.
  5. Recheck the contracts' clauses, make a choice, and confirm the switch.
  6. Your new Ohio electric supplier will contact your local utility and make all the necessary changes.
  7. You are all set for now!

Why Is Your Energy Choice Important?

After so many unexpected global events, such as Covid, the energy crisis, and constantly rising inflation, it's time to secure your home and business in Ohio and get fixed energy rates. Although you may feel unaffected today, things are progressing quickly.

Forget about the anxiety you constantly get before opening your monthly energy bill. Forget about rising wholesale energy prices and overcharges. Today you can actually make the Ohio energy choice work for you and take matters into your hands. That's why Energy5 has selected the best energy suppliers and developed solutions to survive the rising prices.

The Energy5 tool can be a turning point for making crucial energy and gas savings decisions for your home and your business. You are the one who can take the necessary steps to reduce your carbon footprint. Choose an Ohio electric supplier that can present a tailored plan with fixed rates to overcome the energy crisis and save money on your electric bill.


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