Energy Choice in Ohio: A Comprehensive Guide

Energy choice, sometimes referred to as electric choice or customer choice, allows consumers to select their electricity or natural gas supplier from a range of competitive providers, rather than being restricted to a single utility company. Ohio is one of several states in the U.S. that has embraced energy choice, providing its residents and businesses with the freedom to shop for energy plans that best suit their needs. This comprehensive guide will explore the history, benefits, and practicalities of energy choice in Ohio.

History of Energy Choice in Ohio

Before deregulation, Ohio's energy market was dominated by a few utility companies that controlled both the supply and delivery of electricity and natural gas. The biggest 4 of these utilities (AEP Ohio, Duke Energy, Dayton Power & Light (now AES Ohio), and FirstEnergy) operated as monopolies within their designated service areas, setting prices with oversight from the Public Utilities Commission of Ohio (PUCO). Consumers had no choice but to purchase energy from their local utility, with rates set through regulatory processes.

Ohio's journey towards energy choice began in the late 1990s. The state passed Senate Bill 3 in 1999, which restructured the electricity market and allowed consumers to choose their electric generation supplier. This legislation aimed to introduce competition in the market, which would ideally lead to lower prices and better service for consumers. Since then, the natural gas market has also been deregulated, further expanding the options available to Ohioans.

Understanding Energy Choice

Energy choice separates the supply portion of your energy service from the delivery portion. Here’s how it works:

• Utility Companies: These companies maintain the infrastructure, including power lines and gas pipelines. They are responsible for delivering electricity and natural gas to your home or business, regardless of your supplier.

• Energy Suppliers: These companies compete to sell you the electricity or natural gas that is delivered through the utility’s infrastructure. They offer various plans, rates, and terms, allowing you to choose one that fits your needs.

Benefits of Energy Choice in Ohio

1. Customized Plans: Suppliers offer a variety of plans, including fixed-rate, variable-rate, and green energy options. This allows consumers to choose plans that align with their budget, risk tolerance, and environmental values.

2. Green Energy Options: Consumers can choose suppliers that offer renewable energy, contributing to environmental sustainability.

3. Enhanced Customer Service: Competition often leads to improved customer service as suppliers strive to differentiate themselves from their competitors.

4. Incentives and Rewards: Many suppliers offer incentives such as bill credits, gift cards, or loyalty rewards to attract new customers. For instance, with CleanChoice Energy, you can sign up for 100% clean energy and receive a $50 Visa Prepaid Card when you start service. 

Types of Renewable Energy Sources in Ohio

Wind Energy

Ohio's wind energy sector has seen considerable growth over the past decade. The state benefits from favorable wind conditions, particularly in the northern and northwestern regions. Ohio has several wind farms, contributing hundreds of megawatts (MW) to the state's energy grid.

Solar Energy

Solar energy is another rapidly growing sector in Ohio, with increasing installations of both residential and commercial solar panels. Ohio has a plethora of solar installations, ranging from small residential setups to large solar farms, mostly due to state and federal incentives, such as the federal solar Investment Tax Credit (ITC), that have played a crucial role in driving solar adoption.

Hydropower

Ohio's rivers and lakes provide opportunities for hydropower, although it represents a smaller share of the state’s renewable energy portfolio. The state currently has a few small-scale hydropower plants, but there is potential for expansion, particularly with upgrades to infrastructure.

What to Consider When Choosing an Energy Supplier

Price and Rate Type

• Fixed-Rate Plans: These plans offer a set price per kilowatt-hour (kWh) or per hundred cubic feet (Ccf) of natural gas for the duration of the contract. They provide price stability and protection from market fluctuations.

• Variable-Rate Plans: The price can change based on a number of factors including market conditions.

Other Important Considerations

• Contract Terms: Be aware of the length of the contract and any early termination fees.

• Renewal Rates: Check what happens at the end of your contract term. Some suppliers automatically renew contracts, potentially at higher rates.

• Introductory Offers: Some plans may start with a low introductory rate that increases after a certain period.

• Green Energy Options: If sustainability is important to you, look for suppliers that offer renewable energy plans.

How You Can Choose Renewable Energy in Ohio

CleanChoice Energy is a renewable energy supplier offering services to homeowners and renters in Ohio. By choosing CleanChoice Energy as their electricity supplier, customers of AEP Ohio, AES Ohio, Duke Energy Ohio, The Illuminating Company, Ohio Edison, and Toledo Edison can play a role in reducing our collective dependence on traditional, non-renewable energy sources. CleanChoice Energy is dedicated to making the switch to renewable energy easy and accessible for customers in Ohio.