The deregulated energy system of Ohio has opened up the possibilities for consumers to save a great deal of money.
How deregulated electricity works
There are basically two companies that you’re dealing with.
The first is the delivery company. In northeastern Ohio, from Jefferson to University Heights, that company is the Illuminating Company. There is too much to know, except that this is the company that maintains the lines, delivers the electricity, and handles outages.
The second company is the supplier. This is the company that you actually sign a contract with. They will charge you a certain rate and then square it with the delivery company.
An important note: If you don’t choose a supplier or if your contract runs out with a supplier, your service will be billed to you by the Illuminating Company at their base rate.
Choosing a contract the works for you
The most significant thing to consider when looking for cheap electricity in northeastern Ohio is how long you might be living where you are. If you have a month-to-month lease in Chardon, you might not want a super long lease. If, however, you own your own home in Avon, you can easily afford to take a 36-month lease and save some money.
A note on variable rate contracts: The contracts have an introductory rate that is great. The problem is the in the second or third month that rate can explode to something that is ridiculous.
Most contracts are available in 12, 24 and 36 month lengths. There are sometimes 6 month contracts, as well, but they are frequently not unlike variable rates. The rate will jump rapidly at the end of the six months as you move to a different supplier.
The best rates currently available
The only way to really compare rates is side-by-side or apples to apples, so to speak.
As of this writing, September 2017, the best rate for cheap electricity in northeastern Ohio is from Constellation. They offer a rate of 5.9¢ per kWh on a 36-month contract. There is a $150 cancellation fee, but this is not an issue as long as you aren’t going anywhere for a while. The best part of a long contract like this is that no matter what happens to electricity rates, you’re guaranteed a steady for 3 full years.
Direct Energy offers the next two best plans. The Live Brighter 12 and Live Brighter 18 offer rates of 6.3¢ per kWh and 6.4¢ per kWh, respectively. These plans have a $99 cancellation fee, so it’s important to choose the term that best fits your needs.
The Connect to Comfort 24 plans, also from Direct Energy, has a very good rate of 7.2¢ per kWh on a 2 year plan. This plan has a $150 cancellation fee, so you again will want to make sure that you can fulfill your term.
One of the other choices that Ohioans have is to choose green or renewable energy. Xoom Energy has a plan that is 100% renewable energy that has a rate of 7.0¢ per kWh with a $100 cancellation fee. Knowing that you each time you turn on your lights your doing something positive for the environment can be a great thing.
Choosing the right plan is not difficult as long as you have the right tools to give you an apples to apples comparison. OH Energy Ratings makes that easy with a simple search function that let’s you choose terms, rates, and renewable plans.