Ohio

Ohio deregulated its electricity market in 2001, opening the generation portion of your bill to competition while utilities such as AEP Ohio, Ohio Edison, Toledo Edison and Duke Energy continue to own the poles and wires and deliver power.

By comparing offers from licensed retail electric service providers, Ohio businesses can shop for fixed-rate contracts, renewable energy packages and other tailored services. Competitive suppliers offer flexible contract lengths, custom billing and support programs like demand response, energy audits and high-efficiency equipment rebates. Locking in a low kWh rate through a competitive supplier can help your company manage budget volatility, and combining supply savings with upgrades like LED lighting and efficient HVAC systems will further reduce your utility bills.

Ohio’s competitive electricity market traces its roots to the 1999 Senate Bill 3, which required investor‑owned utilities to unbundle their generation from transmission and distribution. By 2001 all customer classes—from small businesses to large manufacturers—could shop for the generation portion of their electricity from certified retail electric service providers while AEP Ohio, Ohio Edison, Toledo Edison, Cleveland Electric Illuminating and Duke Energy Ohio continued to maintain the poles and wires. The Public Utilities Commission of Ohio (PUCO) oversees the market and publishes an Apples‑to‑Apples comparison chart that allows customers to compare supplier offers to the utilities’ Standard Service Offer. Customers who do not switch remain on the default supply rate, which fluctuates periodically based on competitive auctions.

Choosing a competitive supplier gives Ohio businesses more control over their energy spend. Suppliers offer a variety of contract lengths, including 12‑, 24‑ and 36‑month fixed‑rate plans that lock in a price per kilowatt‑hour and provide budget certainty. Some offers include 100 percent renewable electricity generated from wind or solar farms for companies pursuing sustainability goals. Others provide blended products with a mix of fixed and indexed pricing to suit your risk appetite. Many suppliers also bundle energy management services such as demand‑response programs that pay businesses to curtail usage during grid peaks and real‑time monitoring tools that help identify waste.

In addition to shopping for supply, businesses can slash consumption by investing in efficiency upgrades. Start with a professional energy audit to identify low‑cost measures such as LED lighting retrofits, programmable thermostats and occupancy sensors. Heating, ventilation and air‑conditioning systems account for a large share of electricity use; high‑efficiency heat pumps, variable‑speed drives and advanced controls can deliver significant savings. Building automation systems integrate lighting, HVAC and equipment schedules to reduce waste without compromising comfort. Power factor correction equipment and harmonic filters improve the efficiency of motors and reduce demand charges on commercial bills.

Many of these improvements qualify for rebates or financing. AEP Ohio, FirstEnergy and Duke Energy offer prescriptive and custom incentives for lighting, HVAC, refrigeration, compressed air and process upgrades. Ohio businesses may also leverage Property Assessed Clean Energy (PACE) financing or low‑interest loans through programs like Energy Loan Fund administered by the Ohio Development Services Agency. Combining these incentives with competitive supply contracts can accelerate payback periods and free up cash for growth.

Whether you run a corner store in Columbus or a manufacturing plant in Toledo, taking the time to compare supplier offers and invest in efficiency will pay dividends. Use PUCO’s Apples‑to‑Apples comparison tool or consult an energy broker to identify offers that match your load profile. Review contract terms carefully, paying attention to early termination fees and renewal provisions. By working with a trusted supplier and pursuing efficiency upgrades, Ohio businesses can control their energy costs, reduce exposure to volatile markets and meet their sustainability targets.