Ohio Natural Gas Utility Rates to Change

Lower Gas Utility Rates Coming April

It’s not a trick. Lower natural gas utility rates are coming for many Ohio homes this April 1. The April 2024-March 2025 Retail Price Adjustment (RPA) is here. Don’t know what that means? The RPA helps set the price of gas on your utility bill. And to shop the cheapest natural gas plans, it’s important to understand how it works. So, we’re covering how the standard service adders are determined, and how those changes affect each gas company.

How RPAs Affect Your Natural Gas Utility Bills

In Ohio, natural gas utilities are required to offer a standard choice offer (SCO). This is for anyone who chooses not to pick a third party supplier. Their rates are based off of the market price of natural gas, as well as the transport and delivery of natural gas to your home. The RPA is determined through annual auction. Each month afterward, that amount is added to the NYMEX price of natural gas. This amount becomes the gas utility’s SCO price. If you watch NYMEX natural gas prices, you’ll see that they can change every few months.

Natural Gas Rates Are Falling

Natural gas has been much cheaper than 2023. As a result, several natural gas companies have slashed their RPAs. Dominion Energy leads the pack with a nearly 50% reduction, going from $0.039 cents per ccf to $0.020 cents per ccf. Now, that doesn’t seem like a lot. But when the average Ohio home uses around 100 ccf of natural gas per month, that small amount can add up over time.

Meanwhile, the Columbia Gas RPA isn’t as drastic. With only a $0.02 cent per ccf reduction, you won’t be seeing much of a difference in your bills outside of the price drop. The RPA is currently at $0.18 cents per ccf, and is lowering to $0.166 cents per ccf. While this isn’t a huge drop, you should still see some bill reduction.

Vectren (Centerpoint) is the big outlier here. While the other big players in Ohio have lowered their RPAs, Vectren customers will find theirs raised from $0.10 cents per ccf to $0.13 cents per ccf. Again, we’re not talking about big changes here. So while it is a 30% increase, it’s not a huge disaster.

Your Natural Gas Utility Bill Will Change

Currently, the average gas utility bill for Ohioans averaging around $217. But natural gas prices are falling to near record lows. Because the SCO can change every few months, the best way to cut your gas bill for the long term is to shop and compare natural gas rates. With long term plans as low as $0.49 per ccf all across Ohio, you can find the perfect one for home. Check them all out at www.ohenergyratings.com