Electricity in Ohio: How It Works, What You’ll Pay & When Choice Actually Matters

Reviewed by:

Jourdan Reyes-Williams

Last updated: January 13, 2026

Here’s the deal: Ohio has a deregulated electricity market—which locals call “Energy Choice.”

What this means in plain English:

You can choose who supplies your electricity (the company that generates or buys it), but your local utility still delivers it (maintains power lines, responds to outages, sends your bill).

Think of it this way:

• Supplier = The gas station (you can choose which one to buy from)
• Utility = The roads and pipelines (same infrastructure no matter which station you choose)

The confusing part: Your bill has charges from BOTH the supplier and the utility. We’ll break that down.

The goal of this guide: Help you understand how Ohio electricity works so you can decide whether to shop for a supplier—or just stick with the default.

How Ohio’s Electricity System Actually Works

Ohio’s electricity system is split into two distinct parts. Once you understand this, everything else makes sense.

Part 1: Electric Supply (What You CAN Choose)

What it is: The actual electricity generation, which is where your power comes from.

Who provides it:

• Option A: Your utility’s default service (automatic, no action needed)
• Option B: A competitive retail electricity supplier you choose

What changes if you pick a supplier:

• Your generation rate (price per kWh for electricity)
• Your plan type (fixed-rate, variable-rate, renewable, etc.)
• Your contract terms

What DOESN’T change:

• Who delivers your power (still your utility)
• Who responds to outages (still your utility)
• Reliability of service

Translation: You’re choosing who sells you electricity, not who delivers it.

Part 2: Electric Delivery (What You CAN’T Choose)

What it is: The transmission and distribution of electricity to your home—the poles, wires, transformers, meters.

Who provides it: Your local electric utility (determined by where you live).

Major Ohio utilities:

• AEP Ohio – Central and southern Ohio
• Duke Energy Ohio – Southwest Ohio (Cincinnati area)
• AES Ohio (formerly DP&L) – West-central Ohio (Dayton area)
• FirstEnergy utilities – Northern Ohio:
  • Ohio Edison
  • Toledo Edison
  • The Illuminating Company (Cleveland area)

What they do:

• Own and maintain power lines and infrastructure
• Deliver electricity to your home
• Respond to outages and emergencies
• Read your meter and send your bill

Your utility is determined by your address. You can’t change it.

Delivery charges are the same regardless of which supplier you choose.

How the Two Parts Work Together

Your monthly bill includes:

1. Supply charges (from your chosen supplier OR your utility’s default rate)
2. Delivery charges (from your utility—always the same)

Example bill breakdown:

• Supply: 500 kWh × 8¢/kWh = $40
• Delivery: 500 kWh × 4¢/kWh + $15 fixed fee = $35
• Total: $75

Remember: Even if you switch suppliers and lower your supply charges, your delivery charges stay the same.

What Is the “Price to Compare” in Ohio?

This is important if you’re thinking about switching suppliers.

Definition:

The Price to Compare is your utility’s default electricity rate; what you pay if you DON’T choose a competitive supplier.

Key facts:

• Set by your utility (not suppliers)
• Approved by the Public Utilities Commission of Ohio (PUCO)
• Applies only to supply, not delivery
• Changes periodically (every few months to a year)

Where to find it: Printed on your electric bill, usually in a box or highlighted section.

How to Use the Price to Compare

Example:

Your utility’s Price to Compare: 8.5¢ per kWh

A supplier offers: 7.9¢ per kWh (12-month fixed-rate plan)

The math:

• You’d save 0.6¢ per kWh on supply
• If you use 1,000 kWh/month: $6/month savings ($72/year)

Important caveats:

1. This savings applies only to supply charges (not delivery)
2. The Price to Compare can change, so a good deal today might not stay better
3. Make sure to factor in any fees (enrollment, early termination, etc.)

Bottom line: Always compare supplier rates to your current Price to Compare, not to your total bill or what you paid last year.

Can You Choose Your Electricity Supplier in Ohio?

Short answer: Yes, most Ohio residents can.

You CAN choose if:

1. You’re a residential or small business customer
2. You’re served by one of the major utilities (AEP, Duke, AES, FirstEnergy)
3. Your account is in good standing

You might NOT be able to choose if:

1. You’re on a special assistance program with restrictions
2. You’re in a municipal utility area (rare, but exists)

For most Ohioans: Yes, you have “Energy Choice.”

What If You Don’t Choose a Supplier?

Nothing bad happens.

If you never select a supplier, you stay on your utility’s default service at the Price to Compare rate.

You still get electricity. Your lights stay on. Service is unchanged.

Key point: Choosing a supplier is optional, not mandatory.

How Switching Suppliers Works in Ohio

If you decide to switch, here’s the process:

Step 1: You enroll with a certified supplier

• Online, by phone, or through a comparison tool
• Provide your account number and basic info

Step 2: Your utility processes the switch

• The supplier notifies your utility
• Utility verifies and approves

Step 3: Switch takes effect

• Usually 1-2 billing cycles (30-60 days)
• No interruption to service
• No technician visit needed

Step 4: You get one bill from your utility

• Supply charges from your chosen supplier
• Delivery charges from your utility
• One bill, two sections

Important:

Switching doesn’t affect reliability

Your utility still handles outages (suppliers don’t touch infrastructure)

You call your utility if power goes out