Is Your Ohio Business Paying Too Much per kWh?
Ohio market insight · Bills & budgets
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
Divide your total electric cost for a year by the kWh you used. Include utility and supplier charges and taxes. That gives your all-in ¢/kWh. Compare it with EIA's Ohio commercial average: 10.66¢ for 2024, and about 13.78¢ for January–June 2026 based on preliminary data. Then compare the generation part alone with your utility's default price (the SSO, or "price to compare"). Being above the state average doesn't prove you're overpaying. Small accounts and sites with sharp peaks naturally pay more per kWh. The fairer test is your generation price against the SSO and against fresh supplier quotes.
This page benchmarks price. To benchmark how much energy your building uses per square foot, for example with ENERGY STAR Portfolio Manager, see usage benchmarking. For how each ¢/kWh is built up, see cost components. For the default-price benchmark in detail, see the price to compare.
Step 1: Calculate your all-in rate
Use 12 months so that seasonal swings and read-date shifts even out. If you get separate bills from the utility and the supplier, include both.
All-in ¢/kWh = (total utility charges + total supplier charges, including taxes) ÷ total kWh
Then split the total into two parts:
- Generation: the supplier's charges, or the utility's generation or "standard offer" lines if you're on the default price
- Delivery and tax: everything else, meaning distribution, transmission, riders, customer charges and the kWh tax
Illustrative example: 150,000 kWh a year and $22,800 in total charges.
| Dollars | ¢/kWh | |
|---|---|---|
| Generation | $14,100 | 9.40¢ |
| Delivery and tax | $8,700 | 5.80¢ |
| All-in | $22,800 | 15.20¢ |
Step 2: Compare against the right benchmarks
| Benchmark | Value | Compare it with | Caveat |
|---|---|---|---|
| EIA Ohio commercial average | 10.75¢ (2023), 10.66¢ (2024), about 13.78¢ for Jan–Jun 2026 vs about 11.07¢ a year earlier | Your all-in ¢/kWh for the same period | Includes large, high-load-factor accounts, and the 2026 figure is preliminary |
| EIA U.S. commercial average | 12.59¢ (2023), 12.75¢ (2024), about 13.86¢ for Jan–Jun 2026 | All-in | National context only |
| Your utility's SSO | FirstEnergy general service, Jun 2026–May 2027 average: about 9.38¢ (Ohio Edison), 9.45¢ (CEI), 9.43¢ (Toledo Edison). Duke Rate DM first 2,800 kWh: about 11.36¢. AEP Ohio and AES Ohio: shown on your bill by rate schedule. | Your generation ¢/kWh | An annual average. Monthly prices vary by season. |
| Fresh supplier quotes | Firm prices for your usage profile, on the same day | Your generation ¢/kWh | The only true market test |
Match the time periods. Holding a mid-2026 bill up against the 2024 average of 10.66¢ would make almost every business look expensive. Between those two periods, capacity prices rose from $28.92 to $329.17/MW-day and default prices reset twice.
Step 3: Adjust for what legitimately raises ¢/kWh
- Account size. Fixed monthly customer charges are spread over fewer kWh at small sites.
- Load factor. This is how evenly you use power, calculated as kWh ÷ (peak kW × hours in the period). A low load factor means more demand charges per kWh.
- Rate schedule and voltage. Customers served at primary voltage pay less for delivery than secondary-service customers.
- Capacity tag. A site that runs hard during summer afternoon peaks carries a larger tag per kWh, which raises its generation price.
- Utility territory. Delivery charges differ between AEP Ohio, Duke, AES Ohio and the FirstEnergy utilities.
- Season. Summer months cost more. Always benchmark on 12 months.
Load factor example (illustrative)
Two shops each use 20,000 kWh in a 30-day month (720 hours). The demand charge is assumed to be $10 per kW.
| Shop A | Shop B | |
|---|---|---|
| Peak demand | 40 kW | 100 kW |
| Load factor | 20,000 ÷ (40 × 720) = 69% | 20,000 ÷ (100 × 720) = 28% |
| Demand charge | $400 | $1,000 |
| Demand cost per kWh | 2.0¢ | 5.0¢ |
Shop B pays 3¢/kWh more for the same energy. That isn't a supply-price problem, and switching suppliers won't fix it. See demand charges explained and cutting peak demand.
Step 4: Read the result
| What you see | Likely cause | Where to go next |
|---|---|---|
| Supplier generation price well above the SSO | Contract signed at a higher market, or rolled onto a variable price | Check the end date and renewal terms; see switching mid-contract |
| On the SSO, not sure whether shopping helps | No test yet | Get same-day quotes; see is shopping worth it? |
| Generation at or below the SSO, but all-in above the state average | Small account or peaky load | Work on demand and rate schedule, not supplier price |
| Delivery ¢/kWh jumped with no change in operations | Rider or rate-case change, or a billing error | See bill errors and non-shoppable charges |
| Enrolled in a community aggregation | Program price | Compare it with the SSO and with quotes for the same months |
What about competitors?
You can't see a competitor's bills, and "industry average rate" tables published by sales sites are rarely sourced. More reliable comparisons come from:
- Your own sites. Multi-location businesses can compare ¢/kWh across stores on the same utility, adjusted for load factor.
- Trade associations and franchise systems, which sometimes publish member cost surveys.
- Usage intensity. Compare kWh per square foot with EIA's building survey figures. Office buildings average about 13.6 kWh/ft², retail 13.7 and food service 43.8. That's a usage benchmark, covered on the usage benchmarking page.
Taken together, a high all-in ¢/kWh points to one of three fixes: the supply contract, the demand profile or the rate schedule. The split in Step 1 tells you which.
FAQ
What is the average commercial electricity rate in Ohio?
EIA reports 10.66¢/kWh for 2024. Preliminary data show about 13.78¢ for January–June 2026, up from about 11.07¢ a year earlier. Both figures are all-in averages across small and large accounts.
How do I calculate my business's cost per kWh?
Add 12 months of utility and supplier charges, including taxes, and divide by the kWh billed. Then split out the generation charges and divide them by the same kWh to get your supply price.
Why is my ¢/kWh higher than the state average?
Common reasons are a small account, a low load factor with high demand charges, a secondary-voltage rate schedule, or a large capacity tag. The state average includes large, steady users that pay less per kWh.
What should I compare my supplier price with?
Your utility's default (SSO) generation price for the same months, and same-day quotes from other suppliers. Compare generation to generation, not your supply price to the whole bill.