Commercial Electricity Procurement in Ohio: Beginner's Guide
The short answer
"Energy procurement" means choosing how you buy the generation part of your electricity: staying on your utility's default price, joining a community aggregation program, or signing a contract with a certified supplier. For most Ohio small and mid-size businesses the process takes two to six weeks and comes down to five decisions — term, product type, how capacity is handled, usage flexibility, and who helps you buy.
This is the starting point. When you're ready to run a formal bid, see the step-by-step RFP guide; for larger loads using layered or index strategies, see advanced procurement.
What you're actually buying
A supplier contract replaces the utility's generation charge. That price bundles several wholesale costs:
- Energy — the electricity itself, priced off PJM wholesale markets.
- Capacity — your share of what PJM pays generators to be available at peak (a large share of 2026 prices).
- Ancillary services, losses and supplier margin.
- Sometimes transmission and broker compensation, depending on the product.
Delivery charges from your utility stay the same whatever you choose.
Your three basic options
| Option | Best for | Watch out for |
|---|---|---|
| Utility default (SSO) | Businesses that want no contract, or when the default is competitive | Price resets every June 1 |
| Community aggregation | Small accounts in participating communities | Price is set for everyone; may not fit your load |
| Supplier contract | Businesses wanting budget certainty or a better price for their load | Contract terms, auto-renewal, early-termination fees |
The five decisions
- Term. 12, 24 or 36 months are common. Longer terms smooth prices but lock you in.
- Product type. Fixed, variable, or a blend. See fixed vs variable.
- Capacity treatment. Included in a fixed price, or passed through at cost. Pass-through rewards cutting load during PJM peaks; inclusion gives certainty.
- Usage flexibility (bandwidth). How far your usage can swing before extra charges apply.
- Who helps. Go direct to suppliers, use community aggregation, or hire a broker/consultant — see broker vs direct supplier and how broker fees work.
A realistic timeline
| When | What happens |
|---|---|
| 6–9 months before your current contract ends | Pull bills and interval data; list every account |
| 3–6 months before | Request indicative prices; decide term and product |
| Pricing day | Suppliers issue same-day or next-day firm prices; sign while prices are valid |
| After signing | Supplier enrolls you; switch happens on a meter-read date (typically 1–2 billing cycles) |
| First bill | Confirm the new price appears in the generation section |
FAQ
What does energy procurement mean for a small business?
Choosing how you buy the generation portion of your electric bill — default service, aggregation or a supplier contract — and on what terms.
How far in advance should I shop?
For most businesses, start three to six months before your current contract or aggregation term ends; larger or multi-site portfolios should start six to nine months ahead.
Why do supplier prices expire so quickly?
Suppliers price off live wholesale markets, so firm quotes are usually valid for a day or less. Have your signing authority lined up before pricing day.
Is the utility's default price always worse?
No. The default price is set through competitive auctions and is sometimes hard to beat. Compare every offer to it on your actual usage.