Commercial Energy RFP Process Guide for Ohio Businesses
The short answer
A request for proposal (RFP) makes several PUCO-certified suppliers price the same load package under the same rules on the same day, so the offers can actually be compared. The process has five steps: build a complete data package, define exactly what you want priced, invite suppliers with appetite for your size and territory, normalize every bid into one grid (including fees and capacity treatment), then review the contract and manage enrollment. For most mid-size accounts it takes three to six weeks; start six to nine months before your contract ends if the load is large.
This page is the step-by-step process. For a beginner's overview of what you're buying, see commercial electricity procurement basics; for layered, block-and-index and other strategies for larger loads, see advanced procurement; and for judging the suppliers themselves, see how to choose a commercial electricity supplier.
Step 1 — Build the data package
Minimum contents:
- Legal entity name and federal EIN as suppliers require for credit
- Utility account numbers exactly as printed, with service addresses and meter numbers
- 12–24 months of monthly kWh and peak kW for every account
- Interval data (15-minute or hourly) for larger or peaky accounts
- Capacity tag (PLC) and, where used, transmission tag (NSPL)
- Current contract end date and termination provisions
- A credit contact for supplier underwriting
- Known operational changes: expansion, added shifts, closures, on-site generation
A letter of authorization lets your broker or suppliers request usage history and tags from the utility. For help reading the bills themselves, see how to read a commercial electric bill.
Load package quality check
| Item | Good | Weak |
|---|---|---|
| History | 12–24 complete months | Spotty PDFs, missing months |
| Peaks | kW on every bill, or interval data | kWh only |
| Tags | Current capacity tag by account | "We'll find out later" |
| Sites | Full meter list by utility | "About 12 locations" |
| Timing | Clear start-date window tied to meter reads | "ASAP" |
Step 2 — Define what suppliers must price
Tell every bidder exactly what to quote:
| Product | Best when |
|---|---|
| Fixed, capacity included | Budget certainty is the priority |
| Fixed energy, capacity passed through | You can lower your capacity tag during PJM summer peaks |
| Index or block-and-index | You can tolerate volatility on part of the load |
Also specify term options (for example 12, 24 and 36 months), start date, bandwidth tolerance, the pass-through items you will accept, any renewable content, and the bid deadline with date, time and time zone. For the product trade-offs, see fixed vs variable rates.
Capacity is a required column
PJM capacity prices are now known through May 2029, and they are large enough that capacity language decides many awards:
| Delivery year | PJM price ($/MW-day) | ≈ $ per kW of tag per year |
|---|---|---|
| 2024/25 | $28.92 (Duke's DEOK zone $96.24) | $10.56 (DEOK $35.13) |
| 2025/26 | $269.92 | $98.52 |
| 2026/27 | $329.17 | $120.15 |
| 2027/28 | $333.44 | $121.71 |
| 2028/29 | $325.00 | $118.63 |
Require each bid to state, by delivery year, whether capacity is fixed in the price or passed through, and how tag changes at each June 1 reset are handled. If a supplier won't complete that column, don't award on a verbal energy price.
Step 3 — Choose suppliers and run the process
Invite certified suppliers that serve your account size and utility territories; confirm certification on PUCO's list of regulated companies. Too few bidders softens competition, while blasting every supplier adds noise without better prices. If accounts span utilities — say Duke Energy Ohio and AEP Ohio — price each territory separately inside one event so costs aren't blended silently.
Two formats work:
- Sealed RFP — best for complex loads, multi-site portfolios and multiple product options.
- Reverse auction — fast price discovery when the product is simple and the data is clean.
Either way, get contract terms reviewed and credit approved before price day. Fixed prices typically expire the same day they're issued, so unresolved legal or credit questions cost you the price.
Step 4 — Normalize bids into one grid
Every offer goes into the same columns:
- Term and start date
- Price (¢/kWh)
- Broker fee included? Amount in ¢/kWh and dollars
- Product type
- Capacity treatment by delivery year
- Bandwidth
- Pass-through list
- Early termination formula
- Credit requirements
- Estimated term cost under base, high and low usage
For fee mechanics, see how broker fees work.
Worked comparison (illustrative)
1,000,000 kWh a year, 24-month fixed, capacity included in all three:
| Bid | Headline ¢/kWh | Fee | Underlying supplier price | Est. annual cost |
|---|---|---|---|---|
| A | 9.90 | 0.10¢ embedded | 9.80 | $99,000 |
| B | 9.85 | 0.25¢ embedded | 9.60 | $98,500 |
| C | 9.60 naked | $4,000/yr paid directly | 9.60 | $96,000 + $4,000 = $100,000 |
B looks cheapest, but its supplier is 0.20¢ below A's; with the same 0.10¢ fee it would have been 9.70¢. And if any bid passes capacity through, add the estimated capacity cost (tag × ~$120 per kW-year for 2026/27) before ranking. Headline ¢/kWh without fee and capacity columns is not a decision tool.
Scoring rubric (example weights)
- Price after disclosed fees — 40%
- Contract risk (bandwidth, pass-throughs, termination) — 25%
- Supplier credit and service — 20%
- Product fit to operations — 15%
Record the winner against the rubric so the next renewal doesn't depend on memory.
Step 5 — Contract review, award and enrollment
Read the contract exhibits, not just the price sheet:
- Bandwidth penalties
- Material change and facility closure language
- Change-in-law pass-throughs
- Renewal terms — for accounts of 25 kW or less, HB 15 requires two notices before a fixed contract rolls to a variable price (90–60 and 45–15 days before expiration); larger accounts should require notice by contract
- Payment terms and credit support
After signing, the supplier enrolls your accounts. The switch takes effect on a meter-read date, typically within one or two billing cycles (AEP Ohio requires enrollment 12 days before the read). The utility mails a confirmation; small commercial customers have 7 days from the postmark to rescind. Check the first bill for the right supplier, price and start date, and put the next RFP on the calendar six to nine months before expiration.
Common failure modes
- Comparing supply-only offers against a total bill that includes delivery.
- Ignoring peaks, load factor and capacity tags.
- Accepting a price before credit approval.
- Incomplete multi-site meter lists.
- Letting a contract roll over without a market check.
- A single-supplier "exclusive" offer with no competition.
Industry notes
- Manufacturing — interval data and demand drive pricing
- Cold storage — high load factor usually earns sharper quotes
- Property management — master vs tenant meters
- Restaurants — thin margins and weather-driven peaks
FAQ
How long does a commercial electricity RFP take in Ohio?
Three to six weeks for most mid-size accounts, plus one to two billing cycles for enrollment. Large or multi-site portfolios should start six to nine months before the current contract ends.
How many suppliers should I invite?
Enough certified suppliers active in your territory and size to create real competition — quality of fit matters more than count.
Should capacity be included in the fixed price or passed through?
Included if you want a single budget number; passed through if you can lower your capacity tag during PJM's summer peak hours. Either way, require every bid to state it.
What do suppliers need from me to price accurately?
Twelve to 24 months of usage and peak demand, interval data for larger accounts, your capacity tag, account numbers and the legal entity name.