How to take the sticker shock out of electric bills
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Residents fed up with their electric bills can shop around for another supplier — but one Ohio energy expert says the savings may not be worth the hassle.
Why it matters: Ohio's deregulated electricity market gives consumers choices, but a lower advertised rate doesn't necessarily mean a meaningfully lower bill.
The big picture: Duke Energy Ohio is Cincinnati's primary electric utility, but customers don't have to buy their electricity from Duke.
- A change doesn't mean you're breaking up with Duke — it would still deliver your electricity, maintain the wires and respond to outages.
- Duke says electricity generation makes up just under 60% of a typical residential electric bill for customers on its standard offer. That's the portion customers can shop around for.
What they're saying: Noah Dormady, an Ohio State University associate professor and energy economist, tells Axios he wouldn't switch suppliers unless he could save at least 15% compared with Duke's standard offer.
- Anything less, he said, isn't worth the hassle of switching and tracking when the deal expires.
His shopping rules: Look for fixed rates, contracts lasting at least eight months and no monthly or early termination fees.
- Yes, but: Dormady says today's market offers "almost no savings available to consumers."
- If customers agree, they can return to Duke's standard offer without a fee from Duke, though their previous supplier may charge a penalty.
Zoom in: Cincinnati residents have another option through the city's municipal aggregation program.
- The city's October electricity supply rate is 10.44 cents per kWh, compared with 10.49 cents for a typical Duke customer. That's a savings of just 50 cents per 1,000 kWh.
- Molly Robertshaw, the city's sustainability manager, says aggregation has saved participants nearly 13% since 2019 compared with Duke's standard offer.
Between the lines: Reducing consumption can help offset higher costs.
💡 How to save: Duke recommends adjusting your thermostat, sealing drafts and replacing HVAC filters.
- Customers can also monitor usage online and sign up for high-bill alerts.
💰 Need help paying? Duke offers budget billing, flexible due dates and payment plans, plus financial assistance for eligible households.
The bottom line: Shopping for a cheaper supplier might save you a little. But using less energy and finding a payment plan that works could make a bigger difference.