Electricity Rates Rise As Costs Surge
Ohio’s utility companies are scrambling to keep up with the rising cost of electricity. Natural gas prices are at their highest in a decade. And with a hot summer predicted for the state, energy customers could see painfully high electrical bills. So, what caused these rate spikes? Will your electricity rates in Ohio rise this summer?
How Did This Happen?
Periodically, Ohio utility companies hold auctions to line up generator companies to supply them with electricity. These auctions determine the “Standard Service Offer” or price to compare. The Public Utilities Commission of Ohio (PUCO) oversees the auction results. This year, natural gas prices were exceptionally high when the auctions took place.
Results for these utility auctions are posted below:
- AEP Ohio
- AES Ohio
- Duke Energy
- FirstEnergy Utilities (Illumination Co., Ohio Edison, Toledo Edison)
How Much Are Electricity Rates In Ohio Going To Rise?
Starting in June, all of Ohio’s utilities are raising their price to compare rates by around 6.5 cents per kWh. AES Ohio‘s rate will go from 4.80 cents per kWh to 10.91 cents per kWh. Let’s assume that your home in Dayton uses 1000kWh of electricity. You could see a $61 increase in your monthly bill. So, if you are not on a fixed rate plan, you can expect your electricity rate to go up significantly.
What Can You Do To Save Money This Summer?
You want to shop the best fixed rate plan before these changes go into effect. However, remember that summer natural gas prices are uncertain but look likely to increase. So lock in a plan quickly before energy costs force retailers to raise their rates, too.
Under these circumstances, you may have to settle for a rate that’s slightly higher in the beginning. This is doubly important for AES Ohio customers who will eventually pay much more. If a contract makes you uncomfortable, consider finding a plan that offers no early termination fee, or monthly fee. There are lots of options all over Ohio for affordable, easy plans. Meanwhile, consider ways you can save electricity in your home. Replace dirty air filters and seal drafty windows and doors. Also be sure to unplug any unnecessary devices. In short, be smart about your electricity usage while costs are high.
Finding A Better Electricity Rate For This Summer
While electricity prices are soaring, your bill doesn’t have to. Take some time and lock in a fixed rate before June to prevent a nasty bill this summer. To rephrase it: this is not the time to sit and wait it out. Take control of your electrical bill today. To find great rates in your area, check out www.ohenergyratings.com