First Energy Standard Service Offer Rates Rise June 1, Analysts Warn to Shop Energy Suppliers Now
Cleveland, OH - OHEnergyRatings.com says that Illuminating Company customers relying on the utility's Standard Service Offer should shop for a low fixed plan as soon as possible. Due in part to increases from last summer's PJM capacity auction, residential customers will see Cleveland electricity rates rise by 2.6%. Similarly, FirstEnergy customers of Toledo Edison and Ohio Edison will also see rates rise by 2% and 3.35%, respectively, with summer monthly bills rising to as much as $200.
Rising prices from PJM Interconnection have played a significant role in raising rates. The organization oversees the electric grid and wholesale power market across thirteen states, including Ohio. PJM conducts yearly auctions to secure enough electricity generation to prepare for periods of high demand. But, in recent years, PJM has been facing increased energy supply problems as older fossil fuel plants retire and many new energy projects remain delayed in the interconnection process. Strong demand from expanding data centers has added further strain on available power supplies. As a result, auctions to line up summer capacity are showing these problems still remain. Compared with the 2024 auction price of $269.92 per megawatt day, the final 2026 price ended 22% higher. Although the auction rate for 2026 might have exceeded $500 per megawatt day, PJM capped it at $329.17.
For this reason, the Illuminating Company Standard Service Offer for residential customers will go up to 10.1386 cents per kWh on June 1. That's up from the current 9.88 cents per kWh. For some Cleveland electricity customers, another rate hike from the Illuminating Company this summer may be more than they can afford.
Air Conditioning Will Cost You More This Summer
For many Cleveland homeowners, the need for summer air conditioning drives their electricity bills a little higher every year. In 2025, July was Ohio's hottest month, a mid-month heat wave kept the state sweating through hot daytime highs and muggy, sweaty nights. The average home that month used 1,230 kWh, with most of it going to air conditioning.
Analysts at OHEnergyRatings.com estimate that customers may use similar amounts of electricity again this summer if another heat wave develops. However, their monthly bill will be a lot more. Under those conditions, the average monthly Illuminating Company SSO electric bills could easily rise to $190. Similarly, Ohio's other FirstEnergy utilities may see somewhat lower impacts with households in the Toledo Edison service area seeing bills reach $176 and those in the Ohio Edison service area hitting $180.
All the same, Ohio families can ill afford higher food and fuel costs while electricity prices are becoming harder to manage.
What Illuminating Company SSO Customers Can Do
To help customers lower their energy expenses, analysts at OHEnergyRatings.com encourage all FirstEnergy customers to shop and compare plans from Ohio electricity suppliers. Many fixed rate plans have prices that will be below the new Standard Service Offer rate scheduled to begin June 1. In this way, customers who secure a fixed rate plan now may reduce the impact of higher summer electricity bills. Locking in a low price now may also protect them from future rate hikes later this year.
But since the new SSO rates take effect June 1, customers are encouraged to compare Cleveland electricity rates soon to lock in savings.
Karl Trollinger, CEO of Electricity Ratings, adds "These are frustrating times for working families. Once again, Ohio consumers must deal with large PJM auction price swings from their utility during a difficult economy. Fortunately, consumers can turn to retail providers when their utility's price-to-compare rate isn't the best solution. And that's why our mission is to help consumers find the best electricity rates and plans for their needs."
About OHEnergyRatings.com
OHEnergyRatings.com is a website operated by Electricity Ratings, LLC.
Electricity Ratings, LLC operates a network of energy shopping websites serving 17 states and 56 utilities, providing our energy comparison and ratings service to over 80 million customers. We provide our customers with the power to choose the best providers through our consumer reviews platform which provides a reliable, unbiased source of valuable consumer insight. And we back that up by offering in-depth energy company service analysis, personalized recommendations, and practical advice. Our mission is to help consumers harness the power of information to find, compare, and buy electricity and energy services from the best providers.
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