Ohio Utilities May Hike Rates in Spring
Posted onFirstEnergy Plan to Hike Ohio Electric Rates
You may be disappointed if you were looking forward to cheaper spring electricity rates. Because recent reporting suggests that First Energy utilities may be raising rates this spring. But how much will rates rise and what can you do about it? So, here's what you need to know about what Ohio utilities may hike rates this spring.
How High Will FirstEnergy Hike My Electric Rates?
The story broke early this month, that First Energy filed a new electric security plan (ESP). For this reason, non-shopping First Energy customers could see their bills rise. A home using 750 kilowatt-hours (kWh) of energy per month could see bills increase by about $3.40. But, that's not all. The rate would then steadily rise again by another 1.7% until May 31, 2028.
To put it in perspective, let's see how First Energy utility PTC bills compare in their filed ESP VI plan.
| Utility Company | Current PTC Charge (750 kWh) | PTC Charge After First Increase (+2.7%) | PTC Rate, May 2028 (+1.7%) |
| Ohio Edison | $59.92 | $61.53 | $62.58 |
| The Illuminating Company | $59.92 | $61.53 | $62.58 |
| Toledo Edison | $60.30 | $61.92 | $62.97 |
This may not seem like a large increase, especially when compared to the 70% spike for CenterPoint gas rates. But we have to remember that it doesn't take into account winter and summer energy demands. We also have to keep in mind that the natural gas market may change rates in ways we can't predict. So it is possible that the FirstEnergy PTC price per kWh might rise even higher.
Why Hike FirstEnergy Utility's Rates?
At this time, the FirstEnergy utility distribution charge makes up more than half of your monthly bill. FirstEnergy explains that their hike in utility rates will also support their investment in their grid. This includes modernizing the grid, storm restoration work, energy efficiency programs, in addition to other measures that make the grid more reliable.
Can You Shop Electricity Rates Today?
We're only weeks away from March, and that's when shoulder month pricing usually begins. As a result, energy supplier rates may be cheaper next month. So if you start shopping today, you could find rates that beat the First Energy PTC. On top of that, the best energy companies, often provide extra benefits that could create even greater value, such as shopping discounts.
You can start your shopping, right here at https://www.ohenergyratings.com. We're also a great source for the news that could affect your bills.