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Ohio Utility Rate Cases in 2026: Status for Businesses

Ohio market insight · Rates & regulation

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The short answer

All four of Ohio's investor-owned utility groups have had a distribution rate case decided or filed since late 2025. AEP Ohio's April 2026 order produced a net revenue decrease; FirstEnergy's ended in a net decrease after rehearing, with a 2027–2029 plan now pending; AES Ohio settled for an increase and has filed a new three-year plan; Duke Energy Ohio's case is pending, with new rates expected around May 2027. House Bill 15 now requires regular rate cases every three years, so distribution changes will arrive on a predictable cycle rather than through open-ended riders.

Where each utility stands

Utility Most recent outcome What is pending
AEP Ohio PUCO order April 1, 2026: base distribution +$11 million (AEP asked for $97 million), about $105 million in tax refunds over 18 months, net annual revenue decrease of about $58.7 million. New three-part bill format from fall 2026 Electric security plan (ESP V) runs through May 2028; next rate case due under HB 15 by the end of 2029
Ohio Edison, The Illuminating Company, Toledo Edison PUCO order Nov. 19, 2025 cut a roughly $190 million request to about $34 million; on rehearing Feb. 18, 2026, a net reduction of about $39.4 million a year from March 1, 2026 (CEI up; Ohio Edison and Toledo Edison down) Three-year rate plan for 2027–2029 filed May 26, 2026
Duke Energy Ohio — Case 26-0132-EL-AIR, filed March 2026, seeking about a 3% increase for non-residential customers; new rates expected around May 2027
AES Ohio Settlement approved November 2025: base distribution increase of about $168 million a year Three-year plan for 2027–2029 filed July 21, 2026, proposing about 1% a year; AES Ohio describes it as an unopposed settlement, with forecast spending trued up to actual

These are distribution cases. They do not set generation prices or transmission charges, which follow separate processes described below.

How House Bill 15 changed the cadence

House Bill 15, signed May 15, 2025 and effective August 14, 2025, changed the rate-case rules in ways that matter for budgeting:

  • Regular cases. Each utility must file a rate case by the end of 2029 and then every three years.
  • A decision clock. PUCO has 360 days to decide a case, which makes timelines more predictable.
  • Forward-looking test periods. Utilities can base rates on forecast costs over a multi-year plan, with true-ups against actual results. AES Ohio's 2027–2029 plan uses this approach, and FirstEnergy's 2027–2029 filing is also a three-year plan.
  • End of electric security plans. HB 15 repealed ESPs. Default generation service will be procured through competitive bidding once existing plans expire; AEP Ohio's ESP V continues until May 2028.
  • OVEC rider ended. The rider that charged customers for two legacy coal plants ended on August 14, 2025.

The practical effect is that distribution changes will come in planned three-year steps, with annual adjustments inside each plan. For a fuller guide to the law, see the HB 15 business guide.

What a rate case covers, and what it does not

Bill component Set by Affected by a distribution rate case?
Distribution (poles, wires, substations, meters, customer service) PUCO rate cases and distribution riders Yes
Transmission FERC-approved formula rates, passed through utility riders No; updated through its own annual filings
Generation (SSO) Competitive auctions, reset each June 1 No
Generation (supplier) Your contract No
kWh excise tax State law No

This split is why a rate case with a net decrease can coincide with a higher total bill: in 2026, capacity-driven SSO increases and transmission rider updates moved separately from the rate-case results.

How a case moves, and where businesses can weigh in

  1. Filing. The utility files its application, schedules and testimony. Cases are public on PUCO's docketing system.
  2. Staff investigation. PUCO staff review the filing and issue a report and recommendations.
  3. Local public hearings. PUCO holds hearings in the service territory where anyone can testify, which is the simplest way for a business owner to be on the record.
  4. Evidentiary hearing or settlement. Parties that have formally intervened can present evidence or negotiate a settlement.
  5. Order. PUCO issues its decision; parties may seek rehearing within 30 days.
  6. Appeal. Rehearing decisions can be appealed to the Ohio Supreme Court.

Formal intervention requires counsel, so most businesses take part through trade associations, such as the Ohio Manufacturers' Association Energy Group, that intervene for their members. The Ohio Consumers' Counsel represents residential consumers.

What this means for 2026–2029 budgets

  • AEP Ohio: a distribution decrease in 2026 from the tax refund, which runs out after 18 months. Plan for that credit to end, and for transmission rider changes each spring.
  • FirstEnergy: 2026 distribution fell at Ohio Edison and Toledo Edison and rose at CEI. For 2027–2029, the filed plan implies residential distribution increases of roughly 2–3% a year; business impacts depend on allocation.
  • Duke Energy Ohio: plan for a non-residential distribution increase of up to about 3% around May 2027, subject to PUCO's decision.
  • AES Ohio: the 2025 settlement is in rates; the 2027–2029 plan proposes about 1% a year, pending PUCO approval.

Rate cases are only one input. For how supply, capacity, transmission and distribution changes combine on a real bill, see the true cost of Ohio rate increases. For the FirstEnergy case in detail, including 2026 SSO changes, see Ohio Edison, CEI and Toledo Edison rate changes. For how AEP Ohio's transmission rider works on the new bill, see AEP Ohio transmission charges explained.

FAQ

Can I avoid a distribution rate increase by switching suppliers?

No. Distribution charges apply to every customer on the utility's wires regardless of supplier. Shopping affects only the generation portion of the bill.

How often will Ohio utilities file rate cases now?

Under House Bill 15, each utility must file by the end of 2029 and then every three years, and PUCO has 360 days to decide each case.

Why did my bill go up if my utility's rate case produced a decrease?

Rate cases cover distribution only. Generation prices reset on June 1 and transmission riders update separately, and in 2026 those rose for many customers even where distribution fell.

How can a small business comment on a rate case?

Testify at a local public hearing or file a public comment in the case docket. To take part formally, most businesses work through a trade association that intervenes.

Sources

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