How does my location affect my electric bill?
Why does the price of electricity differ depending on what state or even what city you live in? The answer to that question can be complex, but it starts with understanding that cheap electric prices in Ohio depend on several key factors that influence local pricing.
What are the main factors that determine electric rates in Ohio?
- Weather in an area can lead to a high electric bill year-round or seasonally. Residents in moderate climates are likely to see lower electric rates than more extreme climates like southern Texas or Alaska. But you can also see rate spikes when very hot or very cold weather drives up energy demand in an area. Weather can also directly effect power plant operations and transmission lines by reducing capacity or causing outages.
- Power plants generate electricity and also generate costs. These costs are passed onto consumer in one way or another. Older fossil-fueled steam plants will typically have more maintenance costs. Newer, modern plants generate power much more efficiently, and can charge much less for the energy they produce.
- Fuel type has a big impact on price. Ohio electricity suppliers can choose a variety of fuel types including coal, natural gas, nuclear power, and green energy The market prices for any of these fuel sources can fluctuate daily and may directly impact available Ohio electric rates.
- Transmission and distribution of electricity isn’t free. In fact, due to line loss, it takes extra electricity to make sure the full amount arrives at the requested destination. In addition, there are also regular maintenance and storm-related repair costs that vary from company to company and by the geography in the area.
- Demand is always a market force to consider. Whenever there is a higher demand on energy in an area, the price can go up. Higher demand can stem from changes in weather, increasing population, and insufficient transmission/distribution capacity. During periods of higher demand, increasing wholesale prices force retail electricity suppliers to pay more. Ohio electricity customers who have variable rate plans can see their rates spike during extended periods of high demand.
How can comparing prices at Ohio Energy Ratings help you save money?
While some things may be out of your control like the weather or the greater energy market, it’s still within your power to lower your energy bill when you use Ohio Energy Ratings. Our energy shopping tool makes comparing plans easy with prices and features laid out clearly, all in one place. By comparing electric plans apples-to-apples you’ll find a cheap price and the best electric provider for you.