How to shop for a cheaper electricity supplier in Ohio
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It's the hottest time of the year and air conditioners are working overtime. I recently shopped around for a cheaper electricity supplier for the first time and here's how others can do the same.
Why it matters: You could save a handful of dollars monthly — which adds up as electricity prices keep surging.
How it works: For those unfamiliar with the "shopping" concept, it's best to first learn how to read an electric bill.
It has three major costs: Generation (producing the electricity at a power plant), transmission (moving it) and distribution (delivering it to homes from substations).
- AEP Ohio handles all three for most Columbus homes by default, but Ohioans have been able to choose an alternative supplier to reduce generation costs since 2001.
- View the costs on page 3 of this AEP Ohio sample bill.
Reality check: Don't expect to save a ton. Transmission and distribution costs won't change, which is why bills still come from AEP Ohio even after a supplier switch.
Next step: Find your generation rate. Page 3 of that sample bill also includes AEP Ohio's "price to compare."
- From July 1 to Sept. 30, it's $0.1097 per kilowatt-hour (kWh).
- That's about twice as expensive as five years ago.
To shop, visit the state's Energy Choice Ohio website and search for suppliers with lower rates.
Pro tips: This is where it gets tricky, if you want long-term consistency.
- Some suppliers offer fixed rates, while others' rates are variable.
- They may also offer temporary promotions, including the kind offered by door-to-door salespeople. If you don't pay attention, prices can skyrocket after the promotional period ends.
- You can filter searches to avoid early termination fees and variability.
Zoom in: In Columbus, one slightly cheaper option is the city's clean energy aggregation program through AEP Energy. Its rate is $0.1001/kWh through June 2027.
- Several suburbs also have aggregation programs, which allow governments to pool their purchasing power.
Ultimately, I picked a fixed rate of $0.0980 with CleanChoice Energy for 12 months that I can cancel anytime.
- It seemed like a middle ground, with savings but no need to shop constantly.
- For a 1,000 kWh month — around what I used in May and June — my bill will be about $12 cheaper.
What's next: I signed up for email alerts when AEP Ohio rates change, to ensure I'm still getting a deal.
- I also plan to look into cheaper gas rates in the fall, before heating bills rise.
Worth mentioning: Apps like Arbor can automatically do the shopping for you, but only with a select network of "trusted electricity suppliers." I didn't find it difficult to just do it on my own.