Ohio Electric Prices are Rising: Here’s How to Get the Best Rate

By Bryan Miller, Shipley Energy Advisors

Ohio’s residential and small commercial electric customers are facing higher bills in 2025, with much of the increase tied to shifts in the wholesale power market and state-regulated rate adjustments.

Why are electric rates rising?

For most households, the primary driver is the Standard Service Offer (SSO) — the default supply rate set by utilities like AEP Ohio, Duke Energy, FirstEnergy, and Dayton Power & Light. These rates are determined through competitive auctions regulated by the Public Utilities Commission of Ohio (PUCO). Over the past two years, wholesale power prices have climbed sharply, fueled by higher natural gas costs, increased demand, and tighter reserve margins on the regional PJM Interconnection grid. The result: utilities have locked in higher supply rates that flow directly into customer bills.

What can Ohio homeowners do to keep their electric rates low?

While residential customers can shop for electricity through Ohio’s Energy Choice program, many remain on the default SSO. We at Shipley Energy recommend:

1. Shopping the market can offer savings, but it’s important to read the fine print.
2. Look at the rate, the term, and whether it’s fixed or variable – avoid teaser rates that spike later.
3. Keep in mind the cheapest rate isn’t always the best option.
4. Don’t be afraid to stick with / go back to the utility if they are the best option.

What can Ohio businesses do to keep their electric costs down?

For small commercial customers, rising prices are compounded by capacity costs — charges tied to PJM’s annual capacity auctions that ensure enough power plants are available to meet peak demand. Capacity prices in PJM’s most recent auctions for 2025/2026 were significantly higher than in prior years. 2026/2027 closed in July higher than 25/26. These charges, along with Peak Load Contribution (PLC) tags — which are based on each customer’s usage during PJM’s five highest-demand hours of the year — can be a major cost driver.

A knowledgeable energy broker like Shipley Energy Advisors can help commercial customers manage these costs. A good broker doesn’t just get you a low price per kilowatt-hour, they help you plan your usage to lower your PLC tags and time your contract terms to market cycles, which can save thousands.

What Customers Can Do

With the wholesale market still volatile, shopping smart — and managing usage strategically — will be key for Ohioans trying to keep their electric bills in check.

• Residential: Compare offers on the PUCO’s Apples to Apples website, focusing on fixed rates from reputable suppliers.
• Small Commercial: Work with a broker to align contract start dates with lower market periods, explore capacity cost mitigation strategies, and reduce peak-hour usage in summer.
• Both: Improve energy efficiency to reduce overall consumption, which helps blunt the impact of higher rates.

Take Action on Your Electric Bills

For more information on residential rates from Shipley Energy visit ShipleyEnergy.com/enrollment.

Shipley Energy Advisors is proud to be the preferred Energy Partner with the Springboro Chamber of Commerce.  Commercial Energy Customers and Chamber Members, email Bryan Miller at Bmiller@shipleyenergyadvisors.com.