Is Shopping for Electricity Worth It for an Ohio Business?
The short answer
Often, but not automatically. The utility's default price (the Standard Service Offer, or SSO) comes from competitive auctions, has no contract or termination fee, and resets every June 1 — it's a legitimate benchmark, not a penalty rate. A supplier contract wins when it beats the default on your own usage over the same period, or when you value fixing your price past next May. Community aggregation is a third option for smaller accounts. Most Ohio load does shop: EIA data show competitive suppliers delivered about 75% of Ohio's retail electricity (MWh) in 2024.
For how the market is structured, see how Ohio's deregulated market works; if you're opening a new business location, see the new business owner's guide; and to find the exact default price for your account, see your business price to compare.
Your three options side by side
| Utility default (SSO) | Supplier contract | Community aggregation | |
|---|---|---|---|
| How the price is set | Competitive auctions; resets each June 1, and some utilities adjust more often | Quoted by a PUCO-certified supplier on the day you sign | Supplier chosen by your city, township or county |
| Commitment | None — you can switch on your next eligible meter read | Fixed term; early termination charges apply | Enrolled unless you opt out; free opt-out at least every 3 years |
| Price certainty | Until the next reset | For the contract term (often 12–36 months) | For the program's price period |
| Who's eligible | Every account in a shopping territory | Every account in a shopping territory | Accounts using 700,000 kWh a year or less can be auto-enrolled; larger (mercantile) accounts only by opting in |
| Renewable content | Follows Ohio's renewable standard: 8.5% in 2026, no requirement after 2026 | Whatever the contract specifies | Some programs are 100% renewable |
Customers of municipal utilities and electric cooperatives generally can't choose among these; see municipal and co-op areas.
When the default price wins
- The offers in front of you don't beat it. For small businesses on the GS rate, FirstEnergy's June 2026–May 2027 defaults average about 9.38¢ (Ohio Edison), 9.45¢ (The Illuminating Company) and 9.43¢ (Toledo Edison). An offer above those needs a reason other than price.
- You may move, sell or close within a year. The default carries no termination charge.
- Your load is peaky. The default is one price for your whole rate class; a supplier prices your specific shape, so a low-load-factor account can do relatively well on the default while a flat, high-load-factor account is usually priced better by a supplier.
- The account is tiny. If annual savings would be a few dollars a month, the time spent may not be worth it.
When a supplier contract wins
- You need a budget beyond next June 1. PJM capacity prices are already set through May 2029 — $329.17/MW-day for 2026/27, $333.44 for 2027/28 and $325.00 for 2028/29 — so suppliers can quote multi-year fixed prices without guessing at capacity.
- Your load is flat. Refrigeration, multi-shift manufacturing and 24/7 operations are cheaper to serve per kWh and tend to get sharper quotes.
- You have several sites. One contract can align end dates across AEP Ohio, Duke Energy Ohio, AES Ohio and the FirstEnergy utilities.
- You want renewable content beyond what default service will carry once Ohio's renewable requirement ends after 2026.
- You want protection at renewal. Since HB 15, suppliers must send small commercial accounts (25 kW or less) two notices before a fixed contract rolls to a variable price (90–60 and 45–15 days before expiration), which makes contracts easier to manage than they once were.
How to compare correctly
- Use your business price to compare, not the residential one. Published residential figures (for example, AEP Ohio's 10.97¢ for July–September 2026) are not what a business account pays.
- Compare generation to generation. Delivery charges stay with the utility no matter what you choose, so compare only the generation line.
- Compare over the same period. The default resets June 1. A 36-month offer against a 12-month default is really two decisions: does it beat the default this year, and is the fixed price worth it for years two and three?
- Check what's included. Capacity fixed or passed through, bandwidth limits, fees, and early termination terms.
- Do the math on your usage.
Example. A business on Ohio Edison's GS rate uses 400,000 kWh a year. At the ~9.38¢ default, generation costs about $37,520. An illustrative 24-month offer at 8.90¢ would cost $35,600 — about $1,920 a year less. An illustrative 36-month offer at 9.60¢ would cost about $880 more in year one, and is worth it only if you expect the default to rise above 9.60¢ in later years or you value the fixed budget.
Aggregation: the third option
Many Ohio communities buy power on behalf of residents and small businesses. Eligible accounts (700,000 kWh a year or less, not under a supplier contract) are enrolled automatically unless they opt out during a window of at least 21 days. Current examples:
- NOPEC — 240-plus communities in Northeast Ohio, with NextEra as supplier from June 2026 meter reads under a three-year agreement.
- Clean Energy Columbus — AEP Energy, 100% renewable, 10.01¢ fixed for June 2026–May 2027 (AEP Ohio accounts, not Columbus Division of Power customers).
- Cincinnati — Dynegy, 100% green, 10.44¢ for May–November 2026 under a contract through May 2029; small commercial accounts under 700,000 kWh are eligible.
Compare an aggregation price with your default and with direct offers exactly as above. See aggregation for businesses.
Why shopping didn't prevent the 2026 increase
Ohio's average commercial price was 10.66¢/kWh in 2024, well below the US average of roughly 12.6–12.8¢. In January–June 2026 it averaged about 13.78¢, roughly level with the US (about 13.86¢). The main driver, PJM capacity, is carried by every option — default, contract and aggregation alike. Shopping changes how you pay for it and whether your price is fixed; it doesn't make capacity go away.
FAQ
Is the utility's default price a bad deal for businesses?
No. It's set through competitive auctions and resets every June 1. It's the benchmark every supplier offer should beat on your usage.
Can I return to the default price after a supplier contract?
Yes, when your contract ends or if you pay any early termination charge. Larger accounts should check their utility's tariff for any return-to-default rules.
Will I save money just by switching suppliers?
Not automatically. Savings depend on how the offer compares with your default price on your usage, and on what the contract includes.
Can a large business join community aggregation?
Mercantile accounts (over 700,000 kWh a year) can join only by opting in; they aren't auto-enrolled.