Please have your most recent utility bill with you to help you through the process.
“Why is my electricity bill so much higher this month?”
Home energy can be confusing. There’s your utility company -- which is top of mind when you pay your monthly bill -- and your electricity supplier, which may not be a familiar brand name.
It's the supplier’s rates that determine the amount of your bill, and changes in Ohio will drive up how much you’ll need to pay. Worse yet, these changes coincide with summer, when electricity usage reaches its annual peak, mostly due to air conditioning.
Needless to say, this is not a good combination for your wallet.
Let’s look at why this is happening -- and what you can do to compare energy prices and find a new supplier of electricity for your home.
The Standard Service Offer (SSO) of many utility companies across the state has changed as of June 1, with most increased or even doubled.
The SSO is the default amount of money you will pay per if you have not chosen your own supplier or have not joined an aggregation group, such as a group-buying association or other cost-savings organization. The SSO is expressed in an amount of money per kilowatt hour, an individual unit of energy use.
A utility’s SSO is not market-driven, meaning it’s not established the same way suppliers buy and sell energy through traditional trading on the commodities exchanges. Historically, the SSO prices and market prices were rarely divergent since Ohio deregulated energy in 2001.
Until now.
The disparity between the June 1, 2023 utility SSO and the prior SSO is more than 100% (see the table below).
|
Utility Company |
Prior SSO (expired 5/31) |
New SSO (began 6/1) |
SSO% Increase |
$ Increase Per Month |
$ Increases for One Year |
|||||
|---|---|---|---|---|---|---|---|---|---|---|
|
Illuminating Co. |
$0.059093 |
$0.124000 |
109.8 |
$64.91 |
$778.88 |
|||||
|
Ohio Edison |
$0.058766 |
$0.123902 |
110.8 |
$65.14 |
$781.63 |
|||||
|
Toledo Edison |
$0.059383 |
$0.124065 |
108.9 |
$64.68 |
$776.18 |
|||||
|
Duke Energy Ohio |
$0.064400 |
$0.101712 |
57.9 |
$37.31 |
$447.74 |
|||||
|
AEP Ohio |
$0.074900 |
$0.118448 |
58.1 |
$43.55 |
$522.57 |
|||||
|
AES Ohio |
$0.109102 |
$0.108071 |
-0.9 |
-$1.03 |
-$12.37 |
SSO = utility standard service offer
Public officials are now advising consumers to walk away from the SSO through May 2024 and by selecting a new supplier or joining a local community aggregation group if it is available.
You’ll want to change suppliers because this could be a rather expensive year (June 1, 2023, to May 31, 2024).
This scenario is also very likely to be playing out in other states in which energy has become deregulated. It is not short term nor is there an easy way to fix the problem overnight.
There are serious issues with the way the system works (SSO vs real market pricing) and it will take time to realize the full implications of the market disparity.
In recent years when we all benefited from low energy prices, a market change in prices didn’t impact the consumer enough to engage them in exercising their market choice of supplier. A few dollars more or a few dollars less wasn’t enough to move the needle of concern.
In the past, an increase in the price of electricity of 1 cent would cost an additional $120 per year or only $12 per month on average, hardly enough to draw attention to the increase but probably small enough to be dismissed as a weather effect on the electric bill. A penny increase in the cost of electricity simply hasn’t happened in quite a few years.
But from June 1, 2023, in the Illuminating Company (FirstEnergy) service area, the utility residential price will increase by 6.5 cents per kilowatt hour and will be in effect for one year, that is until May 31, 2024! We are no longer discussing the possibility of a $12 per month increase, it is closer to $65 per month.
Add the use of your air conditioning unit or central air into the mix, and the price increase is even more painful.
In an actual case study of an Avon residence, the summer months of June, July, August, and September, represented 46% of the electric usage for an entire year.
Let’s take a look at the impact of staying on the utility rate for this “typical” customer using just short of the average household consumption for a year of 12,000 annual kilowatt hours.
The four summer air conditioning months represent a total usage of 46% of the annual total use for this residential homeowner.
Therefore, the additional expenditure for this residential homeowner, located in The Illuminating Company service area, in the four air conditioning months and staying on the utility SSO will be approximately $332.
No small change, and not
like what we’ve experienced in the past.
Here’s why your utility company encouraged you to change suppliers: It’s about to bear the backlash of complaints about high bills.
The company’s canned response to those complaints? “Don’t say we didn’t warn you!”
Remember, it’s the cost-per-kilowatt-hour of your electricity supplier’s SSO that determines your bill. The utility company only facilitates the delivery of energy to your home.
You’ve had a choice in who supplies your energy for a while. It’s time to make that choice.
Easily! Simply, visit our Get Started page and follow these steps:
On March 2nd, 2017 Energy Price Choice conducted a survey to discover how knowledgable consumers are about their household electric utility bill. The survey asked a series of questions intent on gaining insight into how consumers think about their electric bill. Here's what we discovered.
Our survey shows that up to 90% of consumers don't know what rate they pay for their electric usage. We can't say the exact reason this number is so high, but here are some reasons we suspect.
Regardless of the reason for this, we find it somewhat interesting. Just about anyone you ask can tell you generally what the price of gas for your car is. This might be because many Americans stop three or four times a month at a gas station and stare at the price. However, with the advent of automatic bill-pay, many Americans probably don't even look at their utility bills. If you need help finding your current electric rate, click here.
We found that as many as 75% of respondents claimed they were aware that they could choose their electric supplier. However, when we asked if they were on a fixed rate plan, 35% claimed they were still on a variable rate plan and 25% said that they weren't sure. Furthermore, 25% of respondents said they spend over $150 a month on their electric bill. And even though only 40% were on a fixed rate plan, only 16% indicated that they were likely to sign up for a fixed rate electric plan in the next 6 months.
70% of respondents said they would prefer to sign up for a new fixed rate plan by themselves on the internet. We did find that 20% would prefer signing up with an energy professional over the phone.
Natural gas is a fossil fuel formed when layers of buried plants and animals are exposed to intense heat and pressure over thousands of years. The energy that the plants and animals originally obtained from the sun is stored in the form of carbon in natural gas. Natural gas is combusted to generate electricity, enabling this stored energy to be transformed into usable power. Natural gas is a nonrenewable resource because it cannot be replenished on a human time frame.
The natural gas power production process begins with the extraction of natural gas, continues with its treatment and transport to the power plants, and ends with its combustion in boilers and turbines to generate electricity. It is also piped directly into homes and businesses after it is processed for heat, cooking, and many other different uses.
Natural Gas is "cleaner" than other fossil fuels. The use of natural gas to create electricity does not produce substantial amounts of solid waste. Natural gas produces half as much carbon dioxide, less than a third as much nitrogen oxides, and one percent as much sulfur oxides at the power plant than coal-fired generation. New technologies have made obtaining natural gas safer, easier to get, and cheaper to produce. Natural Gas is the “greenest” fossil fuel we have.
The natural gas market is affected by four primary factors: weather, natural gas inventory, natural gas production, and what’s occurring in the market place with other fuels – primarily oil. Changing supply/demand fundamentals, unpredictable weather, the emergence of a global liquid natural gas market, and dynamic natural gas storage data have all contributed to the recent increase in natural gas volatility. The market ebbs and flows much like the stock market. Anyone of these factors can have great influence on how natural gas is priced.
Many states have deregulation on natural gas supply. With deregulation, a householder or business can buy gas directly from a supplier at a competitive price. Before deregulation, consumers received supply and delivery of natural gas from a single company. This utility company had a monopoly for the region in which they lived. These utilities still have the single authority to distribute gas and charge a regulated fee. Deregulation has separated the sale of natural gas as a commodity from its distribution. Natural gas is available at a competitive price but the delivery is a standard regulated charge. The distribution will remain regulated, but the natural gas supply will be a free market with suppliers competing with each other.
With so many different variables when it comes to the price of natural gas, how are you supposed to figure out what you should be paying? It’s a difficult task but companies like Energy Price Choice. and H. P. Technologies, Inc. H. P. Technologies can help. They have years of experience in the energy industry. They understand all the nuances of the energy industry and can do all the research for you. They will work for you to find the best possible price that will fit your energy needs. This is a great thing because you no longer have to waste hours upon hours searching for the best price when it comes to choosing a natural gas supplier. Let them do all the work for you, all for free. You don’t have to pay a dime. All you have to do is enjoy the savings.
If you are looking to save money on your gas and electric bill, you came to the right site. Click the tabs above to get started saving money on your utility bills for free. If you came to learn more about energy, then you also came to the right place. In this blog entry and future installments, we will help you navigate the waters of what can be a complex energy industry.
You Have Questions? We Have Answers.
Energy Price Choice can help you get lower energy because of deregulation. Energy deregulation has brought competition to the energy industry, driving cost down, but what is energy deregulation? What does it mean for you? Does it affect energy service? How can you benefit from energy deregulation? The following can answer those questions for you.
What is Energy Regulation?
Energy prices remain regulated in many areas across North America. This means that the energy rates and all the processes that get the electricity and natural gas to homes and businesses, is controlled by a governing body. Only the local utility company has the power to sell directly to the consumer. The government or the utility company set the price for electric and natural gas supply and the distribution channels for delivery. Because of this monopoly, consumers have no choice when it comes to their energy provider.
What is Energy Deregulation?
Many states and provinces throughout North America are deregulated. This has allowed competitive energy suppliers to enter the energy market. The suppliers now have the ability to provide a variety of choices for electricity and natural gas service and rates. The energy rates are not controlled by the utility company or the government. Instead the pricing is controlled by the market. The consumer gets the freedom to choose where they receive their energy supply. This competition drives the costs down and the savings go to the consumer.
What Does It Mean for You?
Besides the lower energy rate, not much changes for you. The utility company is still responsible for the distribution of the electricity and natural gas to your homes and businesses, regardless of the energy supplier. The price for the electricity and natural gas supply is not set by the same utility company. You can now choose who you want to supply the energy to your local utility company. In most cases, your current local utility will still bill you. In some areas, you can choose to pay the supplier separately.
Does it Affect Your Service?
Your neighborhood utility company would still provide the power distribution and services. Where the utility company gets the power from is of little consequence. You still get the same uninterrupted energy service, just a lower, more competitive rate on the supply. Same service, better rate.
How Can You Benefit from Energy Deregulation?
Finding a supplier for your energy can be a daunting task. If you were to go to the supplier directly, you will not get the best price available. If you go directly to a hotel to get a room, do you get same price you would if you had gone to websites like Priceline™ and Expedia™? What if the hotel down the street has more amenities and a lower rate per night? How would you know? Are you going to go to each hotel on the block and compare each rate? That seems a bit tedious, but if you did not shop for a room first, you most likely would be missing out on substantial savings. The same thing applies to your energy supply. That’s where companies like Energy Price Choice™ and H. P. Technologies, Inc. come in. These companies will do all the leg work for you and take the tedious out of getting lower energy rates. We will compare and negotiate the best possible price from multiple suppliers. This greatly benefits you because suppliers compete to supply your energy causing substantial savings for you.
Deregulation gives consumers choice
-
the power of the buyer. A deregulated market allows you
to choose your commodity supplier. It also motivates
retailers to differentiate their products from the
utility and those of competitors by developing
innovative features, pricing plans and options that
would have otherwise not been available to you.
Green energy products are an example of innovative
programs made possible by retailers like Just Energy. In
deregulated electricity markets, these products support
the generation and injection of renewable energy into
your electricity grid, making it greener than it
otherwise would have been. In a deregulated natural gas
market, these green products support emission reduction
projects that prevent polluting gases from entering the
atmosphere and help contribute to a cleaner, greener
environment.
For Our Ohio Customers:
The PUCO dictated changes to how retail suppliers market FIXED offerings when the customer price per kwh can change due to a rare, extreme, unforeseen situation such as a disaster, pass through provisions, or change in law. The order dictates that any contract or marketing that declares a price as fixed cannot change, regardless of pass thru or CIL language.
Therefore, if there is a rare, extreme, unforeseen situation such as a disaster, any product with reference to a pass thru, or Change in Law provision, it must be marketed as a VARIABLE or FIRM product or introductory term.
This ruling impacts all current Fixed offerings for C&I and Small Commercial customers. In addition, should Direct Energy choose to pass a CIL to customers with fixed supply, active consent is required per customer before passing through any changes.
What is changing?
·Billing update: Customer invoices for all current fixed offerings will reflect new line item language.
· Fixed Price will now read Purchase Price to align with contract language.
· Fixed Adder will be abbreviated to Adder to align with contract language.
·Legal update: Transaction confirmations will reflect new language. The current CMA’s will not change.
· Fixed will now be referenced as FIRM or FIRM VARIABLE.
§ As an example, the current FIXED EXCLUDING CAPACITY header will now be called OH FIRM VARIABLE CAPACITY.
· Within the Purchase Price language on the Transaction Confirmation, there is a clear call out that this is a variable or firm product.
We will be removing the term Fixed in individual communications with prospects, customers and brokers and will reference Purchase Price or Firm price in these communications when sending pricing out in the OH market.
We are required to comply and have done so. All of the above situations are rare and should not be a major concern for our partners.
Here is the web address link to the existing rule for
those interested: http://codes.ohio.gov/oac/
Natural gas is a fossil fuel formed when layers of buried plants and animals are exposed to intense heat and pressure over thousands of years. The energy that the plants and animals originally obtained from the sun is stored in the form of carbon in natural gas. Natural gas is combusted to generate electricity, enabling this stored energy to be transformed into usable power. Natural gas is a nonrenewable resource because it cannot be replenished on a human time frame.
The natural gas power production process begins with the extraction of natural gas, continues with its treatment and transport to the power plants, and ends with its combustion in boilers and turbines to generate electricity. It is also piped directly into homes and businesses after it is processed for heat, cooking, and many other different uses.
Natural Gas is "cleaner" than other fossil fuels. The use of natural gas to create electricity does not produce substantial amounts of solid waste. Natural gas produces half as much carbon dioxide, less than a third as much nitrogen oxides, and one percent as much sulfur oxides at the power plant than coal-fired generation. New technologies have made obtaining natural gas safer, easier to get, and cheaper to produce. Natural Gas is the “greenest” fossil fuel we have.
The natural gas market is affected by four primary factors: weather, natural gas inventory, natural gas production, and what’s occurring in the market place with other fuels – primarily oil. Changing supply/demand fundamentals, unpredictable weather, the emergence of a global liquid natural gas market, and dynamic natural gas storage data have all contributed to the recent increase in natural gas volatility. The market ebbs and flows much like the stock market. Anyone of these factors can have great influence on how natural gas is priced.
Many states have deregulation on natural gas supply. With deregulation, a householder or business can buy gas directly from a supplier at a competitive price. Before deregulation, consumers received supply and delivery of natural gas from a single company. This utility company had a monopoly for the region in which they lived. These utilities still have the single authority to distribute gas and charge a regulated fee. Deregulation has separated the sale of natural gas as a commodity from its distribution. Natural gas is available at a competitive price but the delivery is a standard regulated charge. The distribution will remain regulated, but the natural gas supply will be a free market with suppliers competing with each other.
With so many different variables when it comes to the price of natural gas, how are you supposed to figure out what you should be paying? It’s a difficult task but companies like Energy Price Choice. and H. P. Technologies, Inc. H. P. Technologies can help. They have years of experience in the energy industry. They understand all the nuances of the energy industry and can do all the research for you. They will work for you to find the best possible price that will fit your energy needs. This is a great thing because you no longer have to waste hours upon hours searching for the best price when it comes to choosing a natural gas supplier. Let them do all the work for you, all for free. You don’t have to pay a dime. All you have to do is enjoy the savings.