One of Ohio's primary electricity companies, Duke Energy, has come to an agreement that could bring dramatically lower electricity rates to the Midwestern state, according to Reuters.

The deal comes as part of an Electric Security Plan that saw several parties raising concerns about lack of competition within Ohio's electricity market, according to DailyMarkets.com.

Ohio already pays lower electricity rates than most of the country, averaging only 9 cents per kilowatt-hour, but the new agreement could see those prices drop even lower. Beginning potentially as soon as the start of 2012, the utility company plans to begin a competitive auction process and spin-off its generation capacity to another company to encourage further competition in the market.

Combined, these two factors could lead to as much as 11 percent lower electricity bills for some Ohio residents.

“Auctions in certain other parts of Ohio have lowered the prices that consumers pay for electricity,” Bruce Weston, counsel for Interim Consumers, told Dayton Business Journal. “This settlement should bring rate relief to Duke customers who have been paying some of the highest electricity rates in the state during the last couple years.”