Ohio Energy Costs Likely to Rise in June 2025

Ohio homeowners and businesses should prepare for a significant increase in their electricity bills starting in June 2025. Experts predict that the results of the PJM Interconnection’s 2024 capacity auction will likely lead to a 10-20% or even higher surge in energy costs across the state. Understanding why this is happening and what you can do about it is crucial.

Decoding PJM and the Capacity Auction

PJM Interconnection is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states, including Ohio. Think of PJM as the air traffic controller for the electric grid in this region, ensuring a reliable supply of power.

One of the key mechanisms PJM uses to ensure future power supply is the capacity auction. This annual auction essentially secures commitments from power generators to have enough capacity available to meet the region’s electricity needs in the future, typically three years down the line. Power plant owners bid to supply this capacity, and the results of this auction influence the “capacity charge” that utilities pay. These costs are then passed on to consumers through their electricity bills.

The 2024 capacity auction results, which will impact energy prices starting in June 2025, signaled a notable increase in the cost of securing future power supply. Several factors contributed to this, including:

1. An ever evolving energy landscape
2. The retirement of some plants supplying Ohio’s power
3. Increasing demand for reliable electricity

This higher cost in the capacity auction directly translates to higher costs for Ohio’s utilities, which they will inevitably pass on to their customers.

Understanding Your Utility’s Default “Price to Compare”

For Ohio residents, understanding the “Price to Compare” is essential when evaluating energy choices. This price, set by your local utility, represents the cost per kilowatt-hour (kWh) for the electricity supply itself, before other charges like distribution and taxes. It’s the benchmark to use when considering offers from alternative energy suppliers.

Here are the current Prices to Compare for major Ohio utilities:

AES Ohio Price to Compare

As of April 2025, AES Ohio’s Price to Compare is 8.58¢ per kWh until May 31st 2025. The price to compare beginning June 1st, 2025 will be announced in late-April or May 2025.

AEP Ohio Price to Compare

As of April 2025, AEP Ohio’s Price to Compare is 7.32¢ per kWh until May 31st 2025. The price to compare beginning June 1st, 2025 will be announced in late-April or May 2025.

Duke Energy Ohio Price to Compare

As of April 2025, Duke Energy’s Price to Compare is 8.02¢ per kWh until April 30th, 2025. The price to compare beginning May 1st, 2025 should be announced by late-April 2025.

Ohio Edison Price to Compare

As of April 2025, Ohio Edison’s Price to Compare is 7.43¢ per kWh until May 31st 2025. The price to compare beginning June 1st, 2025 will be announced in late-April or May 2025.

The Illuminating Company Price to Compare

As of April 2025, The Illuminating Company’s Price to Compare is 7.19¢ per kWh until May 31st 2025. The price to compare beginning June 1st, 2025 will be announced in late-April or May 2025.

Toledo Edison Company Price to Compare

As of April 2025, Toledo Edison’s Price to Compare is 7.37¢ per kWh until May 31st 2025. The price to compare beginning June 1st, 2025 will be announced in late-April or May 2025.

All prices quoted above can be found on the Energy Choice Ohio site. Keep in mind that these prices can fluctuate, so it’s always wise to check your utility’s website for the most up-to-date information.

What Ohio Lawmakers Are Doing about Rising Energy Costs

Ohio lawmakers are taking steps to address the anticipated rise in energy costs. The Ohio House recently approved a sweeping energy generation bill aimed at overhauling the state’s energy market. Key provisions of this bill include the repeal of subsidies for two aging coal plants, a move expected to save consumers money by eliminating charges associated with these plants.

The legislation also seeks to prevent utility companies from adding surcharges, often referred to as “riders,” to customers’ bills without proper regulatory review, enhancing transparency and potentially stabilizing rates. Furthermore, the bill aims to encourage new power plant development within the state to bolster energy independence and meet growing demand.

While the long-term impact of this legislation remains to be seen, it signals a proactive approach by Ohio lawmakers to mitigate rising energy costs and reshape the state’s energy landscape.

Taking Control: What You Can Do to Lower Your Ohio Electricity Bills

While the anticipated energy price increase is concerning, Ohio consumers have several options to manage their energy costs:

Reduce Energy Consumption

The most direct way to lower your bills is to use less electricity. Simple changes can make a big difference:

• Switch to energy-efficient LED light bulbs.
• Unplug electronics and chargers when not in use (phantom load).
• Adjust your thermostat a few degrees – lower in the winter and higher in the summer.
• Run major appliances like dishwashers and washing machines during off-peak hours.
• Improve home insulation to reduce heating and cooling needs.

Explore Fixed-Rate Energy Plans

Consider signing up for a fixed-rate electricity contract with a third-party electricity provider. This can provide price stability and protect you from fluctuating market rates for the duration of your contract.

• Apples to Apples Ohio: Apples to Apples Ohio is the official state-run website managed by the Ohio Public Utilities Commission where you can compare offers from various energy suppliers. However this site can be overwhelming at times and not provide the most easy to digest information.
• Energy Comparison Sites: Websites like electricityrates.com allow Ohioans to easily compare electricity and natural gas plans from trusted providers, view transparent rate information, and find a plan that aligns with your budget and energy needs.
• Directly from Energy Providers: You can often find rate comparisons directly on energy companies’ websites that service Ohio, where you can explore different plans and pricing online. Many also provide the option to call their customer service to speak with a representative who can answer your questions and guide you through the sign-up process.

By comparing offers against your utility’s Price to Compare, you can potentially secure a more favorable rate.

Participate in Utility Savings Programs

Many Ohio utilities offer programs to help customers save energy and money. These can include energy audits, rebates for energy-efficient appliances, and smart thermostat programs. Contact your local utility to learn about available options.

The expected energy price increases underscore the importance of being proactive about your energy choices. By understanding the factors at play and exploring your options, you can take steps to mitigate the impact on your household or business budget. ElectricityRates.com is here to help you navigate the energy market and find a solution that works for you.