Why Are Ohio Electric Rates Going Up? (2026)

Downtown Columbus, Ohio skyline in fall

7 min read • Updated October 2026 • By the CliQ Team — the team that created Blink

Why are Ohio electric rates going up? Mostly the price of power on PJM, the regional grid Ohio belongs to. The capacity price PJM pays power plants to be available jumped roughly ninefold starting June 2025, as data centers pushed demand up faster than new supply came online. Ohio's average residential rate went from 17.38 to 19.45 cents per kilowatt-hour between July 2025 and July 2026, about 12% in a year, according to the EIA.

Ohio has two things most states don't. You can shop for your own electricity supplier, and the state's bill-help programs open well before winter. Here's what's driving the increase, how shopping works, where to get help, and the part of the bill you control.

Why Ohio Electric Rates Jumped

An Ohio electric bill has three parts, according to the Public Utilities Commission of Ohio (PUCO). Distribution pays your local utility for poles, wires, and meters, and the PUCO has to approve those rates. Transmission pays for high-voltage lines, set at the federal and regional level. Generation is the electricity itself, and it can be more than half of the bill.

Generation is where the jump came from. Ohio's utilities don't own power plants. They buy power at auction for customers who haven't picked their own supplier, and pass that price through with no markup. Those auction prices follow PJM, the grid operator for Ohio and 12 other states. The PUCO says generation prices rose sharply in 2022 and 2023, driven by the pandemic, inflation, and global conflict, then spiked again in summer 2025, largely because supply and demand pushed PJM capacity prices higher.

WBNS 10TV in Columbus asked PJM directly. A PJM executive told the station that almost all of the demand growth it expects over the next decade comes from data centers. The capacity price went from about $29 to about $270 per megawatt-day, and PJM is now operating under a cap of a little over $300 while it works out how to charge data centers for what they use. Central Ohio has more than half of the state's data centers.

Video by WBNS 10TV via YouTube, May 2026. Not affiliated with CliQ.

What Ohio is doing. The PUCO has created separate rate classes for data centers. In August it ordered Ohio Power Company, the utility formerly called AEP Ohio, to make any data center that returns to the default electricity price give 180 days' notice and pay the full cost of buying its power separately, so those costs don't land on everyone else's default rate. Five data center companies have also put more than $18 million into the utility's bill-assistance fund (more on that below).

Don't expect a reversal. PJM's auction for June 2027 through May 2028 cleared at the price cap again, and for the first time it didn't secure as much capacity as PJM's reliability target calls for. Distribution rate cases for Duke Energy Ohio and AES Ohio are also before the PUCO. For how Ohio compares nationally, see which states have the highest electricity rates.

The short version: Ohio's increase is mostly a generation-price story set at the regional grid. Your utility's wires charges are a smaller piece. Your own usage is the piece you control.

Ohio Electric Rates Comparison: Should You Switch Suppliers?

Only about a third of Ohio customers pay the utility's default price, according to the PUCO. The rest have picked their own supplier or are in a community aggregation program run by their city or township. WKYC in Cleveland asked the PUCO what people can actually do about a higher bill. The answer came down to two things: manage your usage, and shop your supplier.

Video by WKYC Channel 3 via YouTube, February 2026. Not affiliated with CliQ.

The PUCO's Apples to Apples tool lists every certified supplier currently enrolling customers in your utility's area. Compare offers against the "price to compare" printed on your bill, which is your utility's current default supply price. Before you sign:

  • Check the term and the rate type. A fixed rate holds for the contract. A variable rate can change.
  • Look for an early termination fee. Leaving a contract early can cost you.
  • Read the whole offer. The PUCO notes suppliers are responsible for the accuracy of their own listings, and offers can change at any time.
  • If you're on PIPP Plus, you can't switch. Customers on the income-based payment plan stay with their utility's supply.

HEAP Ohio and Other Help Paying Your Bill

Ohio's assistance programs share one application and the same local agencies. The Ohio Department of Job and Family Services took them over in April 2026, with no change to how you apply. Start at energyhelp.ohio.gov or with your county's community action agency.

HEAP: a one-time credit on your heating bill

The Home Energy Assistance Program puts a one-time credit on your main heating source, whether that's a utility bill or a bulk fuel delivery, once per winter. Applications are open now and run through May 31, 2027. The income limit is 175% of the federal poverty guidelines: $27,930 a year for one person, $57,750 for a household of four.

Winter Crisis Program: November 1 to March 31

For households with the same income limits that have been disconnected, have a shutoff notice, need to start or transfer service, or have a quarter tank or less of bulk fuel. It pays up to $175 toward a PUCO-regulated utility, up to $750 for a non-regulated one, and up to $1,200 for fuel oil, propane, or kerosene. It can also help repair or replace a heating unit.

PIPP Plus: pay a share of your income

The Percentage of Income Payment Plan bills you 5% of your monthly household income for electric and 5% for gas, or 10% in an all-electric home. Each on-time, full payment also knocks 1/24 off any past-due balance. Same 175% income limit.

Special Reconnect Order: October 12 to April 16

If you've been disconnected or face disconnection from a PUCO-regulated electric or gas utility, you can pay no more than $175, plus a reconnection fee of up to $36, to restore or keep service. There's no income requirement, you can use it once a season, and the utility sets up a payment plan for the rest. More than 227,000 Ohioans used it last winter. Call your utility.

Neighbor to Neighbor (Ohio Power customers)

Grants of up to $500 for customers with household income up to 300% of the federal poverty guidelines who are at least 30 days behind with a balance of $50 or more, have paid at least $75 in the past three months, face disconnection or are disconnected, and aren't on PIPP Plus. Data center companies added more than $18 million to the fund this year. First come, first served. Details at ohiopowerco.com/n2n.

The Part You Control: How Much You Use

The rate gets set at PJM auctions and PUCO hearings. How much you use gets set at home. WBNS asked Ohio Power's spokesperson what actually moves a bill. Her answer: the thermostat. She cited ENERGY STAR's suggestion of 68 degrees in winter, and said each degree you turn it down for eight hours saves roughly 1% on heating.

Video by WBNS 10TV via YouTube, September 2026. Not affiliated with CliQ.

That lines up with the federal numbers. Heating and cooling account for more than half of the energy used in a typical US home, according to the EIA. The Department of Energy says turning the thermostat back 7 to 10 degrees for 8 hours a day saves up to 10% a year on heating and cooling. (DOE does caution that deep setbacks aren't a good fit for heat pumps.)

What that's worth: about $80 to $100 a year for the average US household, and more in homes heated with electricity, propane, or oil.

The catch is doing it every day. Nobody remembers to turn the heat down every night and back up every morning, all winter. A schedule does it for you. For other reasons a bill runs high, see why your electric bill is so high, and check what a normal electric bill looks like.

That's where CliQ comes in. It's a $69.99 smart thermostat that runs the setback for you. You set four temperatures for morning, day, evening, and night. Away mode drops the temperature when you leave and brings it back when you're home, including automatically based on your phone's location. The app is free, with no subscription.

It also installs where other smart thermostats won't. Many older Ohio homes have two-wire thermostats with no C-wire, the constant-power wire most smart thermostats need. CliQ doesn't need one. It works with most 24V systems: gas furnaces, electric forced air, and boilers. It doesn't control electric baseboard heat. If your old thermostat is a compatible Honeywell two-wire model, CliQ clicks onto the existing wall plate with no tools. Otherwise it's a screwdriver and a few minutes.

You can shop your supplier once a year. You can set your thermostat once, and it works every night.

See the CliQ Smart Thermostat →

$69.99 MSRP. No C-wire required.

Frequently Asked Questions

Why are Ohio electric rates going up?

Mostly because of generation costs on PJM, the regional grid Ohio is part of. PJM's capacity prices, which pay power plants to be available, rose from about $29 to about $270 per megawatt-day starting June 2025 as data center demand grew faster than new supply. Ohio utilities buy default power at auctions that follow those prices.

How much have Ohio electric rates gone up?

Ohio's average residential price rose from 17.38 cents per kilowatt-hour in July 2025 to 19.45 cents in July 2026, about 12%, according to the EIA. The national average in July 2026 was 18.31 cents.

How do I apply for HEAP in Ohio?

Apply online at energyhelp.ohio.gov or through your county's community action agency. Applications for the 2026-2027 season are accepted through May 31, 2027. The income limit is 175% of the federal poverty guidelines: $27,930 for one person and $57,750 for a household of four. HEAP gives a one-time credit on your main heating source.

What is the Winter Crisis Program in Ohio?

It runs November 1, 2026 to March 31, 2027 for HEAP-eligible households that are disconnected, have a shutoff notice, need to start or transfer service, or have 25% or less of their bulk fuel left. It pays up to $175 toward a PUCO-regulated utility, up to $750 for a non-regulated utility, and up to $1,200 for bulk fuel.

Should I switch electric suppliers in Ohio?

Compare first. The PUCO's Apples to Apples tool at energychoice.ohio.gov lists current offers in your area. Compare each one to the price to compare on your bill, and check the contract length, whether the rate is fixed or variable, and any early termination fee. PIPP Plus customers can't switch suppliers.

How do I get my power or gas reconnected in Ohio this winter?

Under the PUCO's Special Reconnect Order, customers of PUCO-regulated electric and gas utilities can pay no more than $175 plus a reconnection fee of up to $36 to restore or keep service between October 12, 2026 and April 16, 2027. There's no income requirement, and it can be used once per season. Call your utility.

Prices verified as of October 2026. Check retailer links for current pricing.

Sources

Public Utilities Commission of Ohio — News Bureau: 11 years of residential electricity bills, September 22, 2026 — puco.ohio.gov

Public Utilities Commission of Ohio — PUCO sets process to protect AEP Ohio customers from potential data center energy costs, August 5, 2026 — puco.ohio.gov

Public Utilities Commission of Ohio — Special Reconnect Order for 2026-2027 heating season, September 30, 2026 — puco.ohio.gov

Ohio Department of Job and Family Services — Energy & Community Assistance — jfs.ohio.gov

Public Utilities Commission of Ohio — Energy Choice Ohio, Apples to Apples — energychoice.ohio.gov

Ohio Consumers' Counsel — Home Energy Assistance Program (HEAP) — occ.ohio.gov

Ohio Consumers' Counsel — HEAP Winter Crisis Program — occ.ohio.gov

Ohio Consumers' Counsel — Percentage of Income Payment Plan (PIPP Plus) — occ.ohio.gov

Ohio Capital Journal — Data center developers donate millions to Ohio utility assistance program — ohiocapitaljournal.com

PJM Interconnection — 2027/2028 Base Residual Auction results, December 2025 — pjm.com

Utility Dive — PJM capacity prices hit record high as grid operator falls short of reliability target — utilitydive.com

US Energy Information Administration — Electric Power Monthly, Table 5.6.A, average residential price by state — eia.gov

US Department of Energy — Programmable Thermostats — energy.gov

US Energy Information Administration — Residential Energy Consumption Survey 2020, end-use consumption — eia.gov

Photo by Matt Ashworth via Pexels

RETURN TO NEWS

0 comments

Leave a comment

Please note, comments need to be approved before they are published.