Red-Flag Clauses in Ohio Business Electricity Contracts
The short answer
Most expensive surprises in Ohio business electricity contracts come from a handful of clauses: automatic renewal onto a variable price, broad pass-through or change-in-law language, tight usage bandwidth, material-change repricing, and early-termination formulas. Read these five before you compare headline ¢/kWh, and ask for changes in writing before you sign.
This page is the red-flag checklist. For what to negotiate and when, see the negotiation playbook; for key terms to request, see negotiating contract terms.
The red-flag table
| Clause | What goes wrong | What to ask for |
|---|---|---|
| Auto-renewal | Contract rolls to a month-to-month variable price you never priced | Renewal at a stated fixed price, or expiration to the utility default; notice periods you can meet |
| Pass-through / change in law | "Fixed" price grows with new transmission, capacity or regulatory charges | A closed list of pass-throughs; no pass-through of costs known at signing |
| Capacity treatment | Quote looks low because capacity will be billed separately | State whether capacity is included; if passed through, show the tag used |
| Bandwidth (swing) | Usage outside ±x% is billed at market prices | Bandwidth sized to your real variability; portfolio-level bandwidth for multiple sites |
| Material change | Supplier reprices if you close, expand or add equipment | A defined threshold and a formula, not "sole discretion" |
| Early termination | Open-ended formula or liquidated damages | A formula tied to remaining volume and market movement, capped where possible |
| Credit / deposit | Late request for a deposit or letter of credit | Credit terms disclosed with the price |
| Broker compensation | Fee not shown, or differs by supplier | Written ¢/kWh and total-dollar disclosure for every offer |
| Assignment | Supplier can assign the contract to an unknown party | Consent or notice rights |
| Enrollment timing | Start date slips a cycle, leaving you on variable pricing | Start "on the first meter read after" a stated date |
What HB 15 changed for renewals
Ohio's HB 15 (effective August 14, 2025) requires suppliers with residential and small commercial (demand of 25 kW or less) fixed-rate contracts that roll to a variable rate to send two expiration notices — one 90–60 days and one 45–15 days before the end date — disclosing the expiring price and pointing to PUCO's comparison tools. Suppliers must also remind variable-rate customers annually that fixed offers are available. Accounts above 25 kW get no statutory notice. These notices help, but they don't change your contract's renewal price. Put your end date on a calendar the day you sign.
Other traps specific to Ohio
- Aggregation overlap. If a small account is in a community aggregation program, confirm how and when it leaves; a new contract can't enroll until the switch is processed.
- Municipal and co-op meters. Suppliers can't enroll meters served by a city utility or cooperative — remove them from the contract schedule.
- Rescission window. Small commercial customers have 7 days from the utility's confirmation letter to cancel a new enrollment; mercantile customers don't have that right.
FAQ
What is the most common problem with business electricity contracts?
Automatic renewal onto a month-to-month variable price after the fixed term ends.
Can a fixed-price contract still go up?
Yes, if it allows pass-throughs (capacity, transmission, change in law) or if your usage falls outside the bandwidth.
How do I get out of a commercial electricity contract?
Check the early-termination clause; most use a formula based on remaining volume and market prices. Selling a business or closing a site may fall under material-change terms instead.
Do Ohio suppliers have to warn me before my contract renews?
Under HB 15, suppliers must send small commercial accounts (25 kW or less) two notices before a fixed contract rolls to a variable rate. Read them — they state the new price. Larger accounts should track their own end dates.