Electric Rate Hikes Hit Ohio Ratepayers in June

First Energy Says "Time to Shop." Grid Operator Costs May Push Summer AC Bills Over $200.

COLUMBUS, OH, UNITED STATES, May 14, 2025 /EINPresswire.com/ -- OHElectricityRatings.com wants electricity customers to get ready for scorching bills this summer. Ohio's price to compare customers may see their bills rise from 10-15% due to last year's PJM capacity auction costs being passed on to them.

Each year, the PJM Interconnection, the regional transmission authority responsible for the electric grid in Ohio and 12 other states, holds a capacity auction to line up power plants to serve all of its customers. Normally, these auction results are fairly low, less than $30 per megawatt-day which translates into a small addition to the total cost customers pay for electricity.

However, last summer, PJM's capacity auction prices for 2025 hit a searing rate of $269.92 per megawatt-day, about 800% above the $28.92 per megawatt-day rate from the year before. Reasons for this stemmed largely from too-few power plants, transmission constraints, and PJM's slow interconnection queue.

All the same, these high costs will start heating up Ohio electricity bills on June 1. Even FirstEnergy has told its default rate customers, "Shop for electricity."

How Much More It Will Cost This Summer?
Energy analysts at OHElectricityRatings.com found that residential customers could see their bills rise by 10-15%, depending on their local utility. That essentially hikes electricity rates by 2 cents per kWh. The latest EIA data (Jan. 2025) puts the average total Ohio electric rate at 15.64 cents/kWh. So, the additional PJM cost raises this by 2 cents to 17.64/kWh.

According to EIA residential usage data for 2015-2023, the average Ohio home uses 1048.48 kWh during the month of August. EIA data also shows the average August 2024 bill was about $165. Given NOAA forecasts for a hotter and rainy summer in Ohio, OHElectricityRatings.com analysts found customers may see a monthly summer bill easily exceed $185.

For these reasons, OHenergyRatings.com is warning all Ohio energy customers to shop retail electric suppliers for the lowest fixed plan rate available now. By locking in the current price for 12 months or longer, consumers may avoid some of the added capacity costs from PJM as well as shield their pocketbooks from unexpected electric price increases later this summer.

Karl Trollinger, CEO of Electricity Ratings, adds "Our mission is to help consumers stay ahead of big price swings like this. Given the precarious economics at play at this moment, it's important to remind Ohio consumers that they have the power to choose their energy providers. Sticking with their utility's price-to-compare rate doesn't always make sense. In this case, Ohio utilities may bear the brunt of these increased costs. Retail providers, on the other hand, have more options open to them when they shop the wholesale electric markets. So, by making informed choices about how to shop electricity plans, consumers can find the best deals."

OHEnergyRatings.com is a website operated by Electricity Ratings, LLC.
Electricity Ratings, LLC operates a network of energy shopping websites serving 17 states and 56 utilities, providing our energy comparison and ratings service to over 80 million customers. We provide our customers with the power to choose the best providers through our consumer reviews platform which provides a reliable, unbiased source of valuable consumer insight. And we back that up by offering in-depth energy company service analysis, personalized recommendations, and practical advice. Our mission is to help consumers harness the power of information to find, compare, and buy electricity and energy services from the best providers.

Lindsey Bodker
Ohio Energy Ratings
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