New Ohio Business? Setting Up Electricity Service

Ohio market insight · Buying & contracts

Updated September 27, 2026Ohio Commercial Energy editorial teamHow we review content Book a free 15-min bill review

Market-reference note: Numerical default-price examples below retain their cited 2026 reference period. They are historical class-level context, not a current account quote. Confirm the applicable business rate, components and effective dates on your bill before comparing an offer. How to establish your benchmark.

The short answer

Start by finding out who delivers power to your address. If it's one of Ohio's six investor-owned utilities, you can shop for your supply. If it's a municipal utility or a cooperative, you can't. Open service with that utility and expect a credit check. If you can't establish credit another way, the utility can ask for a deposit of up to 130% of your estimated average monthly bill. A new account starts on the utility's default (SSO) price unless a community aggregation program enrolls it. The right time to sign a first supplier contract is usually once you have a few months of real usage, or a solid load estimate, and a quote that beats your price to compare.

This page is about setting up a new account. For how Ohio's market works, see Ohio's deregulated market explained. For whether shopping beats the default price, see is shopping worth it?. For the benchmark itself, see the price to compare.

Step 1: Confirm who serves your address

Who delivers your power	Can you choose a supplier?	Examples
Investor-owned utility	Yes	AEP Ohio, Duke Energy Ohio, AES Ohio, Ohio Edison, The Illuminating Company (CEI), Toledo Edison
Municipal utility	No	Hamilton, Westerville, Cuyahoga Falls, Bowling Green, Piqua, Wadsworth, Painesville, Dover, Niles, Galion, Cleveland Public Power (parts of Cleveland), Columbus Division of Power
Electric cooperative	No	Co-op territory exists in 77 of Ohio's 88 counties, mostly in rural areas

The fastest way to check is a recent bill from the landlord or the previous tenant. City names can mislead, because Cleveland and Columbus each have both an investor-owned utility and a municipal system. If you're in municipal or co-op territory, skip the supplier sections below and focus on getting the right rate schedule. See municipal and co-op areas.

Step 2: Open the account

The utility will ask for your legal business name, federal EIN, service address, start date and a contact person. For new construction or a major fit-out, it will also ask for the expected electrical load. Open the account in the business's name. You don't inherit the previous tenant's supply contract or aggregation enrollment; a new account starts fresh.

Deposits. Ohio's rules for nonresidential applicants let you establish creditworthiness in any of these ways:

a credit check
a good payment record on a utility account within the past two years
a guarantor who is a customer of the same utility
a cash deposit

A deposit can't exceed 130% of the estimated average monthly bill for the next 12 months. The utility must pay at least 3% annual interest on a deposit held six months or longer, and it applies the deposit to your final bill when service ends. Suppliers can run their own credit checks later, but PUCO rules require their deposit terms to be reasonable and disclosed.

Rate schedule. The utility assigns a rate schedule based on your expected size. Once you have two or three bills, check that it still fits. A schedule set on an overstated or understated load estimate is a common and fixable error; see spotting bill errors.

Step 3: Understand the default price

If you don't choose a supplier, your utility supplies generation at its standard service offer (SSO). That price resets every June 1. For June 2026 through May 2027, the small-business general-service SSO averages about 9.38¢/kWh at Ohio Edison, 9.45¢ at CEI and 9.43¢ at Toledo Edison. Duke's Rate DM charges about 11.36¢ for the first 2,800 kWh. AEP Ohio and AES Ohio show the price to compare for your rate schedule on the bill.

The SSO is a legitimate place to start. It has no contract, no early-termination fee and no credit review by a supplier. It already includes PJM capacity costs, and it changes each June. That makes it the benchmark any supplier offer has to beat, measured generation against generation.

Step 4: Watch for community aggregation

Many Ohio communities run opt-out electricity aggregation programs. If your account uses up to 700,000 kWh a year and isn't under a supplier contract, the program can enroll it:

You'll get a written notice with at least 21 days to opt out. If you do nothing, you're enrolled at the program's price.
You can leave without penalty at least every three years. Check the program's own exit terms for leaving sooner.
Programs differ. Some are residential-only, while others include small commercial accounts. Cincinnati's program, for example, covers small commercial accounts under 700,000 kWh.
Accounts over 700,000 kWh a year can join only by opting in.

Treat an aggregation price like any other offer: compare it with the SSO and with supplier quotes for the same months. PUCO also keeps an electric do-not-aggregate list for customers who don't want opt-out offers. See aggregation for businesses.

Step 5: Decide when to sign your first contract

Your situation	Sensible timing
Small office or shop with predictable hours	Can sign within the first months. Suppliers quote small accounts from standard price matrices using estimated usage, so check the usage band terms.
Restaurant, fitness center, manufacturer, or anything with big equipment starts	Wait for two or three months of actual bills, or interval data, so the price reflects your real load shape. Stay on the SSO meanwhile.
Likely to use more than 700,000 kWh a year	Get interval data and ask for custom quotes. The 7-day rescission right doesn't apply to mercantile accounts, and HB 15 renewal notices only cover accounts with demand of 25 kW or less.
Business plan still uncertain	Prefer a 12-month term over 36, so a move or a load change doesn't trigger early-termination or material-change charges.

Be careful with door-to-door and cold-call offers. Check that the supplier is on PUCO's certified list and don't sign on the spot. Small commercial customers can cancel within 7 days of the utility's confirmation letter.

Step 6: First-contract checklist

Price. Compare generation to generation against the SSO for the same months.
End date. Pick a meter read just before a June 1 and put it on the calendar.
Renewal. Under HB 15, small commercial customers get notices 90–60 and 45–15 days before a fixed price converts to variable. Read them.
Early termination and material change. Know what closing, moving or selling the business would cost.
Credit. Know any deposit amount and when it's returned.
Broker fee. Get it disclosed in ¢/kWh.

For clause-by-clause checks, see red-flag contract clauses and the contract terms glossary.

FAQ

Do new businesses in Ohio have to choose an electricity supplier?

No. If you're served by an investor-owned utility and do nothing, you're supplied at the utility's default (SSO) price. That price resets each June 1 and carries no contract.

Will the utility require a deposit from my new business?

Only if you can't establish credit through a credit check, recent utility payment history or a guarantor. Any deposit is capped at 130% of the estimated average monthly bill and earns at least 3% annual interest once held for six months.

Can my business be enrolled in a community aggregation without signing anything?

Yes, if the program includes businesses, your account uses up to 700,000 kWh a year, and it isn't under a supplier contract. You'll get a notice with at least 21 days to opt out first.

When should a new business sign its first electricity contract?

Once you know your usage well enough for a firm price, usually after a few months of bills for businesses with heavy equipment, and when an offer beats the default price for the same months.