The Tool Desk
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Shopping changes who supplies the electricity used to generate your power; it does not replace the local utility that delivers it, maintains lines and responds to outages. Ohio’s Public Utilities Commission (PUCO) describes energy choice as “an opportunity, not a mandate.”
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What “fixed” and “variable” mean on an Ohio electric offer
The rate label describes how the supplier’s generation price behaves, not the entire electric bill. Delivery, distribution and other utility charges remain on the bill from your local electric distribution utility.
Fixed price
PUCO defines a fixed price as an all-inclusive per-kilowatt-hour (kWh) amount that remains unchanged for at least three billing cycles or for the contract term, whichever is longer. “All-inclusive” refers to the supplier’s stated generation price; read the contract for any separate monthly charge or other disclosed fee. A fixed rate protects the contracted generation price from changes during the protected period, but it does not freeze every line on your utility bill.
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Variable price
A variable price is an all-inclusive per-kWh amount that may change by the hour, day, month or another schedule stated in the supplier’s disclosure. The disclosure should explain when a change can occur and how the new price is determined. The word “variable” does not guarantee that the price will fall when wholesale costs fall, and a supplier is not required to keep a variable rate below the utility’s benchmark.
Introductory price
An offer may advertise an introductory price for one to three billing cycles. After that period, the contract can switch to a different fixed or variable price for the remaining term. Treat the post-introductory rate as the price you are actually agreeing to, not the teaser shown in an advertisement.
Monthly and other non-usage charges
A supplier may add a fixed monthly fee to the per-kWh rate. A lower energy price can therefore cost more at your usage level if the monthly charge is substantial. Include every recurring and one-time charge disclosed in the offer when you compare plans.
| Offer feature | What it tells you | What it does not tell you |
|---|---|---|
| Fixed rate | The stated generation price is unchanged for at least three billing cycles or the contract term, whichever is longer. | That the total utility bill, or the plan’s total cost, will be lower. |
| Variable rate | The generation price can change on the schedule and under the method in the supplier disclosure. | How much the next change will be or whether it will be favorable. |
| Introductory rate | A temporary price applies for one to three billing cycles. | The price you will pay after the introductory period. |
| Monthly fee | A fixed charge may be added to usage-based costs. | Whether the advertised cents-per-kWh figure reflects your full supplier cost. |
Definitions and contract treatment are set out in PUCO’s electric-bill glossary.
Use Ohio’s Price to Compare as the starting point
The PTC is the utility’s current benchmark generation amount per kWh. If you choose a competitive supplier, the supplier’s generation charge replaces the generation amount you would otherwise pay through the utility’s standard service offer (SSO). The PTC is not a permanent statewide rate: it varies by utility and can change over time.
Read the PTC printed on your current bill and match it to your utility territory and customer class. Then check the live Energy Choice Ohio Apples to Apples comparison tool. PUCO says its comparison charts are updated daily and show contract length, early-termination fees, monthly fees, promotional offers and other terms.
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June 1, 2026 residential PTC figures
PUCO’s May 18, 2026 shopping guidance listed these residential PTC values effective June 1, 2026. They are dated reference figures, not a substitute for the rate on your current bill or the live comparison chart.
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|---|---|---|
| AEP Ohio | $0.1012/kWh | Effective June 1, 2026; PUCO 2026 reference |
| AES Ohio | $0.1086/kWh | Effective June 1, 2026; PUCO 2026 reference |
| Duke Energy Ohio | $0.1070/kWh | Effective June 1, 2026; PUCO 2026 reference |
| Ohio Edison | $0.1083/kWh | Effective June 1, 2026; PUCO 2026 reference |
| Cleveland Electric Illuminating Company | $0.1111/kWh | Effective June 1, 2026; PUCO 2026 reference |
| Toledo Edison | $0.1100/kWh | Effective June 1, 2026; PUCO 2026 reference |
Because benchmark rates and supplier offers are volatile, do not use one of these figures as a current statewide price. Verify the number on your bill and in the chart before enrolling.
What remains the same when you shop
Your local electric distribution utility continues to deliver electricity, maintain the distribution system, read the meter and handle emergency response. A supplier change does not change the wires serving your home. Contact the utility—not the supplier—for an outage or a service problem involving delivery.
If you do not select a supplier and are not covered by government aggregation, you receive the utility’s SSO. PUCO says the SSO is mainly based on electricity procured through competitive wholesale auctions, plus approved riders and administration fees. Shopping is optional.
PUCO says more than two-thirds of Ohio residents had a supplier in March 2026, either one they selected themselves or one obtained through government aggregation. That participation figure does not show that supplier plans are cheaper; it only describes how many customers receive supply outside the unshopped default.
Who can participate in Ohio’s supplier program?
Most customers of electric distribution utilities regulated by PUCO can compare competitive suppliers. Important limits apply:
- Customers enrolled in the Percentage of Income Payment Plan (PIPP) are excluded from this shopping program.
- Municipal and cooperative electric utilities do not participate in the PUCO-regulated customer-choice program, so their customers should follow their utility’s own rules.
- Government aggregation may place eligible customers in a group supply arrangement. Check your bill or aggregation notice before signing a separate offer.
PUCO’s electricity common questions page explains the program’s eligibility and utility distinctions.
How to compare a fixed and variable offer step by step
- Identify the utility and customer type. Use the utility name on your bill and confirm that the offer is for residential service in that territory. A rate for another utility cannot be compared directly with your PTC.
- Record the current PTC. Copy the cents-per-kWh figure and the date or period shown on your bill. If the bill and a website display different dates, use the current bill as your personal baseline and check the live PUCO chart.
- Open Energy Choice Ohio’s comparison tool. Filter for your utility and residential service. Review the offer’s actual generation price, not only a headline “savings” message.
- Read the rate description. For a fixed plan, confirm the protected period. For a variable plan, find the disclosure language describing the possible change frequency and calculation. If the method is unclear, do not assume it tracks wholesale prices in a predictable way.
- Separate introductory and ongoing prices. Note how many billing cycles the introductory rate lasts and what fixed or variable rate applies afterward.
- Add non-usage charges. Record monthly fees and any other recurring or one-time charges. Determine whether a fee applies every month even when usage is low.
- Check the contract term and exit cost. Write down the start and end dates, any early-termination fee and the supplier’s cancellation instructions. A plan that looks attractive for one month may be unsuitable if leaving is expensive.
- Read what happens at the end. The contract may renew, move to month-to-month service or use another rate. Put the end date on a calendar and review the terms before renewal.
- Consider attributes that matter to you. Compare renewable-energy content and promotional incentives only after understanding the price and contract obligations.
- Save the disclosure and confirmation. Keep the offer terms, enrollment date and confirmation notice so you can verify what you authorized or challenge an error.
Which plan fits which household?
When a fixed plan can be the better risk choice
- You value predictable supplier-generation charges and would rather budget than monitor monthly changes.
- You expect to remain at the address through the contract term and can avoid an early-termination fee.
- The fixed price, including monthly charges, compares favorably with the current PTC at your normal usage.
These are risk and budgeting considerations, not a prediction that the fixed offer will be the cheapest. The utility’s PTC can move below a fixed contract after enrollment.
When a variable plan may be reasonable
- You can tolerate price changes and are willing to check the supplier’s disclosure and bills regularly.
- The contract has no costly exit provision and clearly states how and when the rate changes.
- You have a practical plan for leaving or switching if the price rises.
A variable plan’s flexibility is useful only when you understand the change mechanism. An offer that says merely “market-based” without a readable calculation schedule leaves you unable to estimate future bills.
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When the utility SSO may be the simplest option
Staying with the SSO avoids a separate competitive-supplier contract and its termination or renewal rules. It does not guarantee the lowest price: the SSO’s generation component changes with utility procurement and approved adjustments. Compare it with the current PTC rather than treating it as either a bargain or a penalty.
Calculate the part of the bill affected by your choice
Supplier selection primarily changes the generation portion of the bill. A simple comparison for one billing period is:
supplier generation cost = usage in kWh × supplier price per kWh + supplier monthly fees
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Compare that result with:
utility benchmark generation cost = usage in kWh × current PTC
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Contract terms that can outweigh the rate label
| Term to inspect | Question to answer before enrollment | Why it matters |
|---|---|---|
| Rate type and calculation | Is it fixed or variable, and what exact event or formula changes it? | Determines whether you can forecast the supplier price. |
| Protected period | How long does the fixed price remain unchanged? | Defines the period of budget certainty. |
| Introductory pricing | How many billing cycles receive the teaser rate, and what follows? | Prevents a temporary discount from being mistaken for the contract’s ongoing price. |
| Monthly fee | Is a fixed charge added every billing cycle? | Can materially affect low- or moderate-usage households. |
| Contract duration | When does the term start and end? | Determines how long you are committed. |
| Early termination | What fee applies if you cancel or move? | Can erase apparent savings if circumstances change. |
| End-of-term treatment | Does the plan renew, become month-to-month or use another rate? | Prevents an unattended renewal at unfamiliar terms. |
| Renewable content and incentives | What percentage or benefit is actually stated? | Lets you compare non-price features without overlooking cost. |
Ohio’s switching protections and how to use them
Permission and slamming
Electric service should not be switched without your permission. PUCO calls an unauthorized switch “slamming” and says it is illegal. Supplier marketing must not be misleading or deceptive. Do not provide account information to a marketer unless you intend to review and authorize an enrollment.
Seven-day cancellation window
After an electric supplier signup, you can cancel within seven calendar days counted from the postmark date of the utility confirmation notice. Keep the notice and record the date; the window is tied to the postmark, not to the day you first spoke with a salesperson.
Returning to the utility
You may be able to return to the utility SSO, but first check the supplier contract for an early-termination fee. Cancelling a competitive supplier does not change who responds to an outage: the local distribution utility still handles delivery emergencies.
Certification is not a price guarantee
PUCO certifies competitive suppliers and enforces consumer rules, but supplier generation prices are not regulated in the same way as the utility’s delivery service. Certification does not mean every offer suits every household or that a supplier will remain below the PTC. PUCO’s July 8, 2026 notice denying PALMco Energy’s certification illustrates why customers should verify a supplier’s current certification before enrolling rather than relying on an old advertisement. See the PUCO certification notice.
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Common mistakes and what to do instead
Using an old PTC as if it were today’s price
Problem: A dated web article or prior bill is treated as the current benchmark. Fix: Use the PTC on the latest bill and the daily-updated comparison chart.
Comparing cents per kWh without fees
Problem: The advertised rate is lower, but a monthly charge changes the result. Fix: Add all supplier charges to the generation calculation for your actual usage.
Assuming “fixed” freezes the whole bill
Problem: Delivery, distribution or other utility charges are expected to remain unchanged. Fix: Treat the fixed label as protection for the stated supplier generation price only.
Assuming variable means wholesale-linked savings
Problem: A customer expects every market decline to appear immediately in the bill. Fix: Read the supplier’s disclosure for the exact timing and calculation; do not infer a formula from the label.
Forgetting the contract end date
Problem: An introductory or fixed term expires unnoticed and a new rate applies. Fix: Calendar the end date and review the renewal language before it arrives.
Ignoring eligibility or aggregation
Problem: A customer in PIPP, on a municipal or cooperative utility, or in government aggregation assumes the standard PUCO shopping process applies. Fix: Confirm eligibility and read the bill or aggregation notice first.
A practical decision rule
- Start with the current PTC for your utility.
- Reject any offer whose variable-rate calculation, fees or post-introductory price is not clear.
- Choose fixed if avoiding generation-price volatility is worth the contract commitment and the complete cost is acceptable.
- Choose variable only if you can monitor changes, understand the disclosure and exit without an unacceptable fee.
- Stay with the SSO when avoiding supplier-contract management is more valuable to you than pursuing a different generation offer.
Recheck the comparison whenever your contract approaches its end, your household’s usage changes materially or the supplier sends revised terms. Current prices, certifications and contract conditions can change after enrollment.
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Official Ohio resources
- Understanding Your Electric Bill — PUCO definitions for fixed, variable, introductory and monthly charges.
- Shopping for electricity — PUCO consumer guidance published May 18, 2026, including PTC references and comparison advice.
- How are electric generation rates set? — explanation of the utility SSO and generation procurement.
- Energy Choice Ohio Apples to Apples — supplier-offer comparison chart.
- Electricity Common Questions — eligibility and consumer-protection guidance.
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