Ohio Commercial Energy

Powered by Jaken Energy · 833-264-7776

Ohio Edison, CEI and Toledo Edison Rate Changes

Ohio market insight · Rates & regulation

Updated Ohio Commercial Energy editorial teamHow we review contentBook 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

FirstEnergy's three Ohio utilities (Ohio Edison, The Illuminating Company (CEI) and Toledo Edison) went through their first full distribution rate case in years. PUCO cut a roughly $190 million request to about $34 million in November 2025, then on rehearing in February 2026 changed the outcome to a net reduction of about $39.4 million a year, effective March 1, 2026: CEI's revenue went up while Ohio Edison's and Toledo Edison's went down. Separately, small-business default (SSO) generation prices rose about 0.5–0.6¢/kWh on June 1, 2026, and a three-year distribution plan for 2027–2029 is now pending.

The rate case: from $190 million to a net decrease

The case (24-468-EL-AIR) was filed in July 2024. Its path:

Date Event Result
July 31, 2024 Application filed About $190 million annual distribution increase requested
November 19, 2025 PUCO order About $34 million approved
February 18, 2026 Order on rehearing Net reduction of about $39.4 million a year across the three utilities, effective March 1, 2026

The rehearing changed the result mainly by stretching recovery of about $245 million in previously deferred storm-restoration costs over 25 years instead of five. Spreading the same dollars over more years lowers the annual amount collected. The per-utility effect:

Utility Annual revenue change after rehearing
Ohio Edison About −$24.5 million
Toledo Edison About −$29.5 million
The Illuminating Company (CEI) About +$48.7 million
Combined About −$39.4 million

PUCO noted the deferred costs remain subject to further review and audit.

What it means for a business. These are distribution revenue changes. They reach your bill through each utility's distribution charges and riders, divided among rate classes (for example GS secondary, GP primary, GSU subtransmission and GT transmission). A company-wide cut does not guarantee a cut for every schedule. Compare your March 2026 and later bills with the same months of 2025, line by line, to see your own effect.

Default generation prices from June 1, 2026

Separately from the rate case, each utility's default price for small businesses reset on June 1, 2026. Annual averages for the GS rate:

Utility June 2025–May 2026 June 2026–May 2027 Change
Ohio Edison ~8.87¢/kWh ~9.38¢/kWh +0.51¢
The Illuminating Company ~8.88¢/kWh ~9.45¢/kWh +0.57¢
Toledo Edison ~8.90¢/kWh ~9.43¢/kWh +0.53¢

Illustrative: a business using 10,000 kWh a month on the SSO pays about $51 more a month at Ohio Edison, $57 at CEI and $53 at Toledo Edison.

The SSO is set through competitive auctions, so the increase reflects the wholesale costs suppliers priced in, including higher PJM capacity prices ($269.92/MW-day for 2025/26, rising to $329.17 for 2026/27). These are the prices a supplier offer has to beat; see the price to compare guide.

Transmission: Rider NMB

Transmission costs at the FirstEnergy utilities are recovered through the Non-Market-Based Services Rider (Rider NMB), which updates each April. According to an Ohio energy consultant's summary of the 2026 filing, the transmission rate in the ATSI zone (FirstEnergy's PJM zone) rose about 3.4% from 2025, with each rate class's charge set by its share of the summer 2025 peak. That is why the April change differs by class, and why the rider is non-shoppable but partly peak-driven.

The 2027–2029 three-year plan

On May 26, 2026, the three utilities filed their first three-year rate plan, using the multi-year approach allowed under House Bill 15. The plan averages about $800 million a year of infrastructure investment and about $83 million a year for vegetation management. FirstEnergy's stated distribution bill impacts, for a residential customer using 1,000 kWh a month, are:

  • Ohio Edison: about 2.2% a year (+$4.26 a month each year)
  • CEI: about 2.6% a year (+$5.15 a month each year)
  • Toledo Edison: about 2.8% a year (+$5.30 a month each year)

The filing did not state separate commercial impacts; business effects will depend on how the approved revenue is allocated by class. Under HB 15's process, PUCO has a 360-day clock for a decision, so expect a ruling within roughly a year of the case being accepted. Because the plan covers 2027–2029, budgets for those years should assume modest annual distribution increases unless PUCO orders otherwise.

What to do if you are on Ohio Edison, CEI or Toledo Edison

  • Separate the moving parts. In 2026 the SSO rose, distribution fell at Ohio Edison and Toledo Edison but rose at CEI, and Rider NMB changed in April. Budget each line separately.
  • Benchmark your supply. If you are on the SSO, compare 9.38–9.45¢ against fixed offers that state whether capacity and transmission are included.
  • Watch the 2027–2029 case. Public hearings and comments are your chance to weigh in; business groups often intervene on behalf of their members.
  • Manage your summer peak. Both capacity tags and Rider NMB class allocations are driven by summer peaks.
  • Check your rate schedule. After a rate case, confirm you are on the most economical schedule for your voltage and load.

Service-area details are on the Ohio Edison, Illuminating Company and Toledo Edison pages. For how these changes add up to a real bill impact, see the true cost of Ohio rate increases. For all four utility groups' cases and the HB 15 cadence, see Ohio utility rate cases in 2026.

FAQ

Did FirstEnergy's Ohio rates go up or down in 2026?

Both. On March 1, 2026, distribution revenue fell at Ohio Edison and Toledo Edison and rose at CEI. On June 1, 2026, small-business default generation prices rose about 0.5–0.6¢/kWh at all three.

Why did CEI go up when the other two went down?

The rehearing recalculated each utility's revenue requirement separately, and CEI's result was an increase of about $48.7 million a year. Each utility has its own costs, rate base and storm-cost deferrals.

Does switching to a competitive supplier avoid these increases?

It can change the generation portion, which is where the June 2026 SSO increase sits. Distribution and transmission changes apply to every customer on the utility regardless of supplier.

When will the 2027–2029 plan be decided?

The plan was filed May 26, 2026. HB 15 gives PUCO 360 days to decide, so a decision is likely by around mid-2027; when the first rate change reaches bills will depend on PUCO's order.

Sources

Request a reviewCall