Why PTC Rates Are So High
Since 2019, natural gas has become Ohio’s biggest fuel source for in-state power generation. This makes sense, because natural gas is cheap and plentiful in Ohio. So where are all the low price electricity plans? After all, last month Ohio utilities hiked rates rose across the state. Let’s see if it’s the right time to shop for 3rd party electric suppliers.
AEP Ohio PTC Price Hike
The average Ohio household uses about 846 kWh of power per month. So, your Ohio utility’s Price to Compare can cost you more or less depending where you live.
Last month, AEP Ohio customers saw their rates rise from 9.986 cents per kilowatt-hour (kWh) to 10.12 cents per kWh. This means the supply charges rose from about $84 a month to about $85 a month. This may not sound like much, but on July, PTC rates are set to rise by 1 cent per kWh. For this reason, In effect, rates will rise to about 10.96883 cents per kWh. That’s almost $93 in average monthly supply charges (an $8 difference).
Duke Energy Electricity Rate Increase
Duke Energy customers saw their rates rise about 6-7% from 10.08 cents per kWh to 10.70 cents per kWh. In effect, the average monthly supply charge went up from $85 a month to about $90 a month. In spite of this, Customers can shop the most low price plans that beat the Duke Energy price to compare.
However, customers may face the looming problem of Duke Energy’s distribution charges rising 38% in spring of 2027.
If the rate increase goes into effect, it would add another $18 to your electricity bill. Thankfully, this rate case is still in its early stages. So PUCO is expected to hold hearings later this year. A final decision is expected to not come until sometime early 2027.
First Energy Utility Price Hikes
The Illuminating Company hiked rates up by nearly 14%, going from 8.9078 cents per kWh to 10.1386 cents per kWh. This takes the average monthly supply charge from about $75 to almost $86. Similarly, Ohio Edison rates rose about 13% from 8.8919 cents per kWh to 10.0253 cents per kWh. That’s a supply charge going from $75 to almost $85 a month. Finally, Toledo Edison rates rose nearly 11% from 9.1812 cents per kWh to 10.1870 cents per kWh. The average home user may see their monthly supply charge rise from $77 to $86.
Moreover, First Energy filed to increase distribution rates by $4 to $5 starting July 1 2027 through June 2029. PUCO could decide on this rate case by next spring.
AES Ohio PTC Rate Increase
Finally, AES Ohio PTC rates rose about 15% from 9.4 cents per kWh to 10.856 cents per kWh. This take an average monthly supply from about $79 to almost $92. The good news is that consumers also have a large choice of low priced plans that beat the PTC rate.
Can OH Customers Lower Electricity Bills?
While electricity has gotten more expensive, it could be a problem if Ohio experiences another hotter-than-normal summer. But consumers face another problem from rates rising across the board due to distribution rate increases.
The best way to keep your bills low each month is to compare electricity plans apples to apples. And then lock in the cheapest rates you can find.
You can always start shopping at https://www.ohenergyratings.com. You can also count on us for news and tips that could affect your bills.