What the Rising Energy Bills Means for Greater Cleveland Residents
Introduction:
Many Ohioans arelooking forward to summertime, but don’t be shockedwhen you see the price tag on your electric bill as the weather gets hotter. FirstEnergy,the main deliverer of electricity to Cleveland and Greater Cleveland, is anticipatingthe rise of electricity costs last month. These new increased rates will remainthat way until May of 2024. Here is our guide to what is happening and what youcan do about it.
How is Electricity Supplied to Ohio?
FirstEnergy delivers electricity to over 2 million Ohioans and is split up into three different sectors as pictured above (Toledo Edison, Illuminating Company, and Ohio Edison). FirstEnergy is a member of the regional transmission organization (RTO) which "Coordinates wholesale electricity markets and manages the high-voltage electricity grid for over 65 million people” according to the Ohio Public Utilities Commission. Therefore, Ohio is supplied electricity from a wide-ranging area. This energy is generated using both nonrenewable (Natural gas, and coal) and renewable resources (Hydropower generation, wind, solar, geothermal and biomass energy).
What do these Increased Prices Look Like?
For FirstEnergy customers in Ohio, usage cost increased from the 5.9 cents per kilowatt an hour to a forecasted 10.2 cents per kilowatt. Matt Schilling, the director of the public affairs office for the Public Utilities Commission of Ohio, states some customers could experience a $30 increase in their bill per month.
It is important to note that Ohio is a deregulated state when it comes to your electric utility bill. Energy deregulation functions through reverse auctions. This means that each company presents its energy at the lowest possible price rate and is bid on. FirstEnergy’s spokesperson made the following statement:
“Ohio is a deregulated state, and while FirstEnergy’s Ohio utilities are responsible for delivering electricity to your home or business, they do not generate that electricity. That's the role of an energy supplier. Customers can shop among a wide range of competitive energy suppliers for electric generation, which typically represents about half of a customer’s monthly bill. Our Ohio utilities do not profit from the generation portion of a customer’s bill.”
As the consumer, YOU have the freedom to choose who your supplier is.
What can you do to Counteract the Price Hike?
Insulate your home: It is estimated that more than 90% of US homes are under-insulated, and your home may be one of them!
- RetroFoam premium wall insulation can reduce energy costs by up to 50%
- Attic insulation is one of the easiest and most affordable ways to reduce energy loss - and save up to 15% on heating and cooling costs!
- Click here to check out our website and sign up for a free estimate appointment!
Do your Research:
- Click here to receive tips on choosing an electric supplier.
- Ohio allows customers to choose their energy suppliers. Click here to compare rates and shop around for providers.