Ohio Electricity Rates: How to Compare Suppliers, Plans and Real Energy Costs

A slightly higher fixed rate with no monthly fee may sometimes provide better value than a lower rate attached to recurring charges.

Compare Variable Electricity Rates Carefully

Variable-rate plans can change according to the supplier's terms.

The initial electricity price may be attractive.

But that price may not remain in effect indefinitely.

Before selecting a variable plan, determine:

• How frequently the price can change
• How the new price is calculated
• Whether advance notice is provided
• Whether a cancellation fee applies
• Whether the initial rate is promotional

Ohio's official consumer guidance recommends asking suppliers whether a rate is fixed or variable and exactly how a variable price can change.

The PUCO's questions to ask electricity suppliers also recommends checking fees, contract duration, usage-dependent pricing and what happens when the agreement expires.

Check Monthly Supplier Fees

Monthly fees can significantly change the economics of a plan.

Consider a $14.95 monthly charge.

Over one year:

$14.95 × 12 = $179.40

The lower electricity rate needs to generate more than $179.40 in annual savings before the plan becomes cheaper than an otherwise equivalent no-fee option.

This matters especially for lower-usage households.

At 500 kWh, a $14.95 charge has a much larger effective impact per kWh than it does at 2,000 kWh.

Always annualize recurring fees before choosing a supplier.

Understand Early Termination Fees

Some supplier contracts include an early termination fee.

This may matter if you expect to:

• Move soon
• Change suppliers
• Rent rather than own
• Need greater flexibility
• Take advantage of lower future rates

Suppose a plan saves $8 per month.

Potential annual savings: