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Energy Continuity Planning for Ohio Businesses

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The short answer

An energy continuity plan covers two different risks: losing power (storms, equipment failure, grid emergencies) and losing price certainty (a supplier exits, a contract expires onto a variable rate, or an index price spikes). The core steps are the same for both: list what must keep running, decide how long you need to ride through, choose backup power or storage for those loads, know how Ohio utilities restore service, and know what happens to your supply contract if something goes wrong. Most businesses can write a workable plan in a few pages.

For generator-specific pitfalls, see backup generator mistakes. For batteries as a backup and cost-management tool, see energy storage for Ohio businesses. For a cold-weather operating checklist, see emergency planning for cold snaps.

Two risks, one plan

Physical outage Price shock
Typical causes Storms, ice, equipment failure, grid emergencies Supplier default or exit, contract expiration, index price spikes, capacity resets
What it costs you Lost sales, spoiled inventory, idle labor, damaged equipment Higher cost per kWh for months
Who you call Your utility Your supplier or broker; PUCO if there's a dispute
Main defenses Critical-load list, backup power, storage, procedures Contract terms, expiration tracking, supplier credit, budget contingency

Step 1: Inventory critical loads and the cost of downtime

For each site, list the loads that must run during an outage and what an outage costs per hour:

Load kW Must run within Maximum tolerable outage Cost per hour if down
Refrigeration / freezers
IT, network, phones, point of sale
Life safety, security, emergency lighting
Key process equipment
Sump pumps, heat trace, freeze protection

This list sizes everything that follows. Loads that can't tolerate even a momentary interruption (servers, controls, some process equipment) need an uninterruptible power supply or a battery, because a standby generator takes time to start and transfer. Loads that can wait a few minutes can ride on a generator.

Step 2: Choose ride-through equipment

Option Best for Limits
UPS Seconds to minutes for IT and controls Short runtime; batteries need replacement
Standby generator (diesel or natural gas) Hours to days for critical loads Fuel logistics; testing; air-permit limits on non-emergency use
Battery storage Instant transfer; can also cut demand charges and capacity tags Runtime limited by battery size; needs islanding controls to work in an outage
Solar plus storage with islanding Extended ride-through in daylight Most grid-tied solar shuts off in an outage unless designed to island
Portable generator hookup Low-cost option for small sites Manual connection; a transfer switch is required for safety

The federal storage investment tax credit remains available at the full rate for projects that begin construction through 2033, stepping down after that, and projects starting after 2025 face new foreign-entity sourcing restrictions; confirm eligibility with a tax adviser. Ohio's investor-owned utilities don't offer business rebates for backup equipment.

Step 3: Know how utility restoration works in Ohio

  • Report outages to your utility, not your supplier. Your supplier sells the electricity but doesn't own the wires.
  • Restoration priorities. Ohio rules require each utility to maintain an emergency plan. The plan gives first priority to downed live wires and priority restoration to hospitals. Most businesses shouldn't assume they'll be restored first — plan for a multi-day outage after a major storm.
  • Reliability standards. Utilities report two measures to PUCO each year: SAIFI (how often the average customer loses power) and CAIDI (how long restoration takes). Major events are excluded from those calculations, so the reported averages understate what happens in the worst storms. A utility that misses its standard two years in a row is in violation.
  • Get a contact. Larger accounts often have a utility account manager. Put that name, the outage line and your account and meter numbers in the plan.

Step 4: Protect against price shocks

  • Supplier default. If your competitive supplier defaults, abandons customers or loses its certificate, you return to the utility's default service, and Ohio rules say you can't be charged costs or penalties for that return. You'll keep power, but your price becomes the default price (the SSO), which resets every June 1. Budget for that possibility and check a supplier's standing before signing — see supplier credit mistakes.
  • Contract expiration. For accounts with demand of 25 kW or less, HB 15 requires suppliers to send notices 90–60 days and 45–15 days before a fixed contract rolls to a variable rate; larger accounts get no statutory notice. Put every expiration date in the plan with a named owner.
  • Index exposure in extreme weather. Customers on index or variable prices can see sharp increases during winter cold snaps and summer heat. If you're on index pricing, decide in advance whether to curtail load when prices spike.
  • Annual capacity resets. Capacity prices through May 2029 are already set at about $118–$122 per kW of capacity tag per year, so the risk is your tag, not the price. Avoid setting a high tag during PJM's summer peak hours.

Step 5: Communication, insurance and drills

  • Call tree. Who decides to shut down lines or close a location? Who contacts customers, the utility, the generator vendor and the fuel supplier?
  • Manual workarounds. How are doors opened, sales recorded and inventory protected without power? Keep a printed copy.
  • Restart sequence. When power returns, stagger equipment restarts. Everything starting at once can trip breakers and set a new monthly demand peak.
  • Insurance. Ask your agent whether your business-interruption policy covers off-premises utility service interruption and what waiting period applies.
  • Test it. Run a tabletop exercise each year and a live generator or battery transfer test on the schedule the manufacturer and code require.

FAQ

What should an energy contingency plan for an Ohio business include?

A list of critical loads and their tolerable downtime, backup power or storage for those loads, utility contacts and restoration expectations, contract expiration dates and supplier-default steps, a call tree and a restart sequence.

What happens if my electricity supplier goes out of business in Ohio?

You return to your utility's default service with no interruption in power, and Ohio rules bar charging you costs or penalties for that return. Your price becomes the default service price.

Who restores power first after a storm in Ohio?

Utility emergency plans give first priority to downed live wires and priority restoration to hospitals. Most businesses should plan for a multi-day outage after a major storm.

Can a battery replace a backup generator?

For short outages and sensitive loads, often yes. For multi-day outages, most sites still need a generator or a large battery paired with on-site generation.

Sources

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