When temperatures rise, your air conditioner works harder, and you can see the difference on your electric bills. If you’re looking for ways to save money, some customers have found success by shopping for their electricity supplier.
The backstory
There are three main parts to the electric system: generation, transmission and distribution. AEP Ohio is responsible for distribution — connecting the homes and businesses we serve to the electric grid.
In Ohio, electric distribution utilities like AEP Ohio are legally prevented from owning or operating electric generation facilities like power plants and solar farms. This structure is often called “deregulation,” and it allows third-party companies to supply electricity to customers.
These companies are called Competitive Retail Electric Service (CRES) providers, and they function as the go-betweens who buy electricity wholesale from generators and sell the power to retail customers like you.
CRES providers offer their own rates for electric supply and customers can choose their provider. Alongside these providers, AEP Ohio supplies electricity through the Standard Service Offer (SSO) for customers who choose not to shop for a provider.
Regardless of who supplies your electricity, AEP Ohio delivers it to your home or business through our poles and wires. We also maintain and invest in the electric system and it’s our people who respond during power outages.
Comparing prices
Before you shop, take a look at page three of your electric bill and find your Price-to-Compare. This is the price per kilowatt-hour (kWh) for AEP Ohio’s SSO. In order for you to save money by shopping for a CRES provider, their price per kWh must be lower than the SSO rate for the same usage that is on your bill.
If saving money is your goal, compare the rate you are currently paying with offers from competitive suppliers. If you find one that’s less than your current generation rate, switching could reduce the supply portion of your electric bill, depending on the terms of the offer and how much electricity you use.
The Public Utilities Commission of Ohio (PUCO) makes it easy to compare offers through its Apples to Apples comparison tool at EnergyChoice.Ohio.gov.
They also have this helpful video that walks you through the process. Keep in mind that rates change and those shown in the video may not be current.
Look beyond the price
Price is important, but it isn’t the only thing to consider, and the details are very important here. Before choosing an offer, make sure you understand its terms. For example:
- Is the rate fixed for the length of the contract, or can it change?
- How long does the contract last?
- Is there a monthly fee or a fee for ending the contract early?
- Is a low rate an introductory offer that will change later?
- What happens to the rate when the contract expires?
Some customers may also consider other features, such as renewable energy options. The best choice depends on what’s most important to you.
Pro tip: If you choose a CRES provider, it might be helpful to put a reminder on your calendar before your rate expires so you can see what has changed since you made your initial selection.
The choice is yours
You don’t have to choose a competitive supplier. Customers who don’t shop receive their electric supply through AEP Ohio’s SSO. And shopping doesn’t guarantee you’ll save money as offers and terms vary and can change over time.
If you do shop, review your options thoroughly and understand the details before enrolling. The PUCO’s Apples to Apples tool lists offers from certified suppliers and allows you to compare factors including price, rate type, contract length, early termination fees, monthly fees and renewable energy content.
No matter who supplies your electricity, AEP Ohio will continue delivering it safely and reliably to your home or business. And if the power goes out, we’re still the ones to call.
Still have questions?
Call our 24/7 Customer Solutions Center at 800-672-2231. Our representatives can help explain the process, verify your supplier and ensure you are on AEP Ohio’s SSO if that is what you want.
