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Ohio · Electric

Got an electric offer letter in Ohio? Is it a good deal?

By Dr. Matthew Crowley

· 7 min read

Checked against: Apples to Apples (energychoice.ohio.gov). How we get our prices

This guide is about Ohio. Judy checks bills in 18 states. Find your state's rules

An envelope in the mail says "Lower your electric bill," or "A new rate for residents of your town." It may even name your utility. Is it a good deal?

Some of these offers could help you. Many won't. Here is how to tell who sent the letter, and how to check the offer in about five minutes, with your bill and a pen. The same steps work for an offer from a caller or a seller at the door.

You'll need your utility's Price to Compare. It's on your bill and on our Ohio Price to Compare page, with a page for each utility, like Ohio Edison's Price to Compare and AEP Ohio's Price to Compare.

First: who sent the letter?

Offer letters look alike, but they aren't all the same kind of letter. Look at the company name at the top and the fine print at the bottom.

  • A sales letter from a supplier. A supplier is a company that sells the electricity itself, at its own price, while your utility still delivers it. Nothing changes unless you sign up. You can set the letter aside, or check it with the steps below.
  • A letter from your town or county. If your community has an electric aggregation program, the letter may say you will be signed up unless you send back an opt-out form by a date. That is a different kind of letter, with a deadline. See Ohio energy aggregation: how to opt out.
  • A letter from your utility that confirms a switch. If you, or someone in your home, signed up with a supplier, your utility mails a letter to confirm it. The PUCO says you then have seven days from the postmark to cancel. Call the utility, not the supplier. If you never signed up, see Switched electric supplier without permission?
  • A name that sounds like your utility. Some suppliers share part of a name with a utility. AEP Energy, for example, is a supplier, not the utility. And the utility once called AEP Ohio now goes by Ohio Power Company on the state's price list. See AEP Energy vs AEP Ohio.

If the letter is a sales offer, here is how to check it.

Step 1: Find your Price to Compare

Your Price to Compare is your utility's own price for the electricity itself. It is the price to beat. It is shown in cents per kilowatt-hour (kWh). A kWh is one unit of electricity.

The Ohio Consumers' Counsel (OCC) tells people to "compare the marketer's rates with their utility's 'Price to Compare' listed on their electric bill." A marketer is another word for a supplier: a company that sells the electricity, while your utility still delivers it.

Not sure where it is on your bill? See What is the Price to Compare on my Ohio electric bill?

One catch: the Price to Compare changes during the year. Before you compare, check whether a new price is on the way. Each utility has a "what changes next" page:

Step 2: Get the offer's price in cents per kWh

Ask for one number: the price per kWh. Ask for it in writing.

Be careful with offers that only give a percent off or say "lower your bill." Ask: a percent off what? For how long? If the seller can't give you a price per kWh, you can't compare it, so you can't know if it helps you.

Step 3: Ask if the price is fixed, variable or a teaser

  • A fixed price stays the same for the whole contract.
  • A variable price can change, often every month.
  • A teaser price starts low, then goes up.

The OCC warns: "Watch out for 'teaser' rates where some marketers initially offer very low rates (the teaser) that are soon replaced by higher rates."

A variable or teaser price can beat your Price to Compare this month and lose to it a few months later. If you want to know what you will pay, a fixed price is easier to judge. My guide to fixed vs variable rates has more.

Step 4: Ask about fees

Ask about two kinds of fees:

  • A monthly fee. A few dollars a month can wipe out a small savings.
  • A fee to leave early. The OCC says to "look for 'early termination fees' that can make it costly to switch to another marketer or return to the standard offer."

Step 5: Ask what happens when the contract ends

The OCC says: "Beware of 'evergreen' contracts where the energy contract automatically renews, sometimes at much higher prices."

Ohio's rule says a supplier must send you a written notice 45 to 90 days before your contract ends. (This doesn't apply to month-to-month plans.) It can come as its own mailing, or as a message or insert in your bill. The front must say: "Important notice regarding your electric service contract's expiration." Watch for it in the mail and in your bill. If a family member helps with your mail, tell them to watch for it too.

Now do the math

You don't need a calculator app. Just a pen.

  1. Take your Price to Compare and subtract the offer's price. Both are in cents.
  2. Multiply that by the kWh you used last month. That number is on your bill.
  3. Divide by 100. Now you have about how many dollars a month you would pay more or less for the electricity itself.
  4. Take away any monthly fee.

If what is left is only a dollar or two, the offer may not be worth the bother. That is extra true if the price is variable or the contract has a fee to leave.

Compare with the state's list

The Public Utilities Commission of Ohio (PUCO) lists offers for your area on its Apples to Apples (opens a new tab) charts. Suppliers must keep their offers there accurate and up to date, the PUCO says. If the offer you got is higher than offers you see there, you can do better. My guide on how to use Apples to Apples shows how to read it.

If you already said yes

You still have a way out. Your utility mails a letter confirming the switch. The OCC says: "You will receive a confirmation notice from your utility, which you can cancel within seven days without penalties."

The OCC also says sign-ups by phone or at the door "must be verified by an independent third party." If you felt rushed during that call, call your utility within those seven days and ask to cancel.

Who to call

  • Public Utilities Commission of Ohio (PUCO): 1-800-686-7826
  • Ohio Consumers' Counsel: 1-877-742-5622

Judy Saves doesn't sell electricity and isn't paid by any supplier. I'll never call you or knock on your door.

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