Archive for Ohio

Despite AEP Ohio Price Drop in July Competitive Savings Remain High


AEP Ohio Electric Rate Savings Potential by Todd Yasbin
Its been a tough summer for AEP Ohio electricity customers as energy price hikes have caused a sticker shock for many customers as their electric bills have arrived. AEP Ohio customers on the default rate saw the price they pay for electricity supply increase by 58% on June 1, 2023. Many customers haven’t fully appreciated what that increase will do to their electric bill, and likely won’t until they receive their AEP Ohio electric bills in July or August for the June service period.

AEP Ohio recently released their new price to compare default rate, also referred to as standard service offer, that will go into effect on July 1, 2023 and likely stay in effect for several months. The new July rate will drop slightly from the June rate, but only by 5%. The 58% increase in June saw the price to compare rate jump to 11.82¢ per kWh, and that price will drop to 11.20¢ in July.

Meanwhile, competitive Ohio electricity suppliers continue to offer rate plans well below even the new lower July default rate. The lowest AEP Ohio electric rates are offerings savings as high as 40% versus the standard service offer default price. This presents a clear path for customers on the default rate to easily lower their Ohio electric bills simply by switching from AEP Ohio to a lower electric rate plan.

The Ohio Public Utilities Commission’s last electricity choice activity report released in May stated that 56% of AEP Ohio customers were still on the default rate. This represents more than 850,000 customers who will experience the shock of higher than expected electric bills as they arrive in July and August.

These customers should waste no more time in shopping for a low AEP Ohio electric rate so that they can bring their electricity expenses back down to levels experienced before the summer rate hike. In 2022, the AEP Ohio price to compare that went into effect on July 1 stayed the same through October 2022. The same is expected for this year, meaning that default rate payers who do not shop for a competitive Ohio electric rate can expect to pay 11.20¢ per kWh through October instead of competitive rates that are available below 7¢.

Locking in a low fixed Ohio electric rate will not only save AEP Ohio customers in the near term, but could also protect them from potential future increases in the price to compare in the future and add further protection resulting in lower AEP Ohio electric bills. AEP Ohio expects to change their price to compare rate again in October of 2023, followed by rate changes in January and April of 2024. As of now there is no way of knowing what those rates will be set at.

AEP Ohio customers can save money now and protect themselves from volatility and electric bill surge surprises by locking in a low fixed electricity rate plan. The lowest rates available are listed below and are updated in real time.


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Ohio Edison Customers Race to Lower Their Rates

Ohio Edison Savings Potential by Todd Yasbin

 

Ohio Edison customers are in a race to find lower electric rates in order to avoid the effects of a 110% rate increase that went into effect on June 1, 2023.  Ohio Edison is raising their default Standard Service Offer rate due to high prices in the wholesale energy market that occurred several months ago.

In order to avoid the Ohio Edison rate increase customers need to learn about the benefits of electricity shopping in Ohio.

Ohio Edison Standard Service Offer Rate

The Standard Service Offer (SSO) is the default rate that Ohio Edison customers – who have not selected a competitive electric rate plan – pay for electricity supply.  The SSO rate went from 5.876¢ per kWh to 12.394¢ on June 1, which represents the 110% increase.

SSO rates are only charged to those who do not shop and participate in the Ohio electricity choice market.  For those customers who have not selected a competitive energy plan, taking the time to do so could help them prevent the 110% increase on their electric bill.  The increase should be expected for those SSO rate payers who do not take the time to shop for lower Ohio Edison electric rates.

How to Shop for Lower Ohio Edison Rates?

Participating in Ohio Edison electric choice is a simple process that can save customers a lot of money in as little as five minutes.  Here are the steps:
1. Go to an electric price comparison site
2. Enter in your zip code
3. Compare offers in your area which include price, term, termination fee, and generation source
4. Select the offer that best fits your desires
5. Enter in your information and Ohio Edison Customer Number
6. You’re finished.  The switch will occur at your next available meter read date

What is the Ohio Edison Customer Number

When switching electric suppliers you will need your Ohio Edison Customer Number and not the account number.  This serves as a high level of confusion for many customers.

The Ohio Customer number is a 20 digit number that starts with 08.  It is not your 12 digit account number.  In order to process the switch, the utility company needs the 20 digit customer number which can be found on your electric bill right above the line item charges.

The Customer Number can be found at the letter “H” below:

Reveals where a customer can find their customer number on the Ohio Edison electric bill

Ohio Edison Bill and Where to Find the Customer Number

Ohio Edison Customer Shopping Activity

n May of 2023 the Public Utilities Commission of Ohio reported that 45% of Ohio Edison customers, accounting for around 476,000 customers, were on the Standard Service Offer rate and thus going to be effected by the more than doubling of the price they pay for electricity supply.  That number had decreased from 542,000 customers in April of 2023, indicating that word was starting to get around about the drastic Ohio Edison rate increase.

Current low competitive rates in Ohio Edison are well below the SSO default rate.  In reality, there is no reason for any customer to be on the default rate this summer.  Below are current Ohio Edison competitive electric rates that are updated daily.


 

 

 

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Switch Electric Companies in Dayton Power and Light

Ohio electricity customers who receive their monthly electric bill from Dayton Power and Light have a tremendous opportunity to save money by switching their electricity supplier. As one of the smallest markets in the state, competitive suppliers have overlooked advertising to Dayton Power and Light customers until recently, instead deciding to focus their marketing efforts on some of the state’s larger markets such as AEP. However, as the market has matured and electricity choice awareness has increased, more electricity companies are attempting to gain new customers in some of the smaller utility markets. The Dayton Power and Light market is particularly attractive due to the current default price conditions that residential customers are paying; competitive prices are well below the default price providing customers new to electricity choice a powerful incentive to switch to a new electric company.

Ohio has been working towards developing a better electricity deregulation market allowing residents to more easily choose an alternative electric supplier for their generation power costs. Electricity price advertising has helped Dayton Power and Light consumers better understand the Ohio electricity choice laws. Many new power shopping customers are surprised to learn that even after they switch electric suppliers, their local utility will continue to deliver the actual power to their home and in most cases mail the same electric bill. This means that even after a Dayton Power and Light customers switches electricity companies, DP&L continues to maintain the reliability of the power lines in the area and mail out the same electric bill, with the competitive rate chosen replacing the DP&L default rate.

Despite the large savings potential for residential customers in the area less than half have taken the time to switch electricity companies. Competitive rates are currently around 20% lower than the DP&L default rate, making electricity choice and switching one of the easiest ways to save money on a necessary expense. Shop and save below from a list of Dayton Power and Light competitive electricity plans that have all been approved by the state of Ohio. The switching process is all done through computers. Customers do not need to be home when the switch is made and a person does not physically come to the property to make the switch.


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