State Ranks 4th Nationally for Largest % Increase

Since April, 2024, U.S. commercial electricity prices have been moving up steadily, rising from 12.66 cents on average to 13.51 cents, or 6.71%. But Ohio business electricity rates have been rising much faster. A little more than two years since tight energy supplies in the PJM grid first skyrocketed capacity auction results, Ohio businesses especially have seen their commercial electricity rates jump by nearly 28%.

This rising commercial electricity cost not only reflects the surging price for energy supply but also the higher rates Ohio utilities charge to deliver and maintain the high kilowatt demand some businesses need.

According to the U.S. Energy Information Agency, commercial electric rates in Ohio averaged 10.69 cents per kWh in April, 2024. By April, 2026, the average rate increased to 13.65 cents per kWh, or 27.68%.

To be precise, EIA calls this price a “bundled” rate. That is, it includes both the energy supply rate and the utilities’ commercial service rate in its total price per kWh. This distinction is useful in comparing energy prices between deregulated and regulated energy markets.

While the EIA’s 2024 Utility Bundled Retail Sales-Commercial data includes rates from Ohio’s six investor owned utilities, it also includes rates from the state’s 32 coops and municipal utilities. But because coops and municipal utilities tend to have slightly lower commercial electric rates, researchers with OhioEnergyRatings.com found that these lowered the average for the whole state. As a result, the analysts found that commercial electric rates among the state’s investor owned utilities actually clocked in much higher than EIA’s average rate for the state.

According to this 2024 data, Ohio’s six investor-owned utilities commercial rates actually averaged 16.06 cents per kWh. That is 50% higher than most coops and municipal utilities. Specifically, bundled commercial utility rates in 2024 ranged from 11.63 cents per kWh (Duke Energy) to 18.59 cents per kWh (Illuminating Company). Moreover, the state’s six investor owned utilities serve nearly 90% of electricity customers in Ohio. And that detail underscores the economic impact of these higher prices for Ohio businesses.

Nevertheless, EIA data comparing the average price of electricity to ultimate customers by state showed that Ohio commercial rates in 2026 had risen by 27.68% over the 2024 rate. So, it’s doubtless that rising costs for bulk transmission, maintenance, and notably storm damage repairs have helped drive up grid costs for all of Ohio’s electric utilities; investor owned, municipals, and coops alike.

Armed with that percentage, analysts used it to estimate the 2026 bundled electric rates for Ohio’s six investor owned utilities:

Source: EIA-861 schedules 4A & 4D and EIA-861S. 2026 rates are estimates.

Assuming an average monthly commercial usage of 6,000 kWh, the monthly bill could add up to about $1,230.00; roughly $300 more than 2024.

What it Means for Commercial Electric Rates in Ohio

Unlike residential electric bills where most of the cost comes from the utility, the cost for commercial electricity lies mainly in the energy supply rate. In essence, therefore, businesses that go with their utility’s Standard Service Offer rate are likely paying significantly more for their commercial electricity than those who go with Ohio energy suppliers.

For that reason, the rising utility price for commercial electricity in Ohio makes it crucial for businesses to get the best rate for their power needs. To that end, in spite of the large price increases by their local utilities, business owners can save by switching from their utility’s Standard Service Offer to a retail electricity provider. When businesses shop and compare Ohio electricity rates on commercial comparison web sites such as OhioEnergyRatings.com, they often find deals on electricity supply and negotiate contracts that may save them up to 50% vs their utility’s current default rate.

Methodology

Analysts found that EIA data for “bundled” commercial electricity rates rose by an average of 27.68% from April, 2024 to April, 2026. However, as EIA data contained investor-owned utilities, coops, and municipal utilities, analysts felt it provided an inaccurate picture of commercial electricity rates in Ohio. Since investor owned utilities provide most of the electric service in the state, analysts decided to use EIA data for average utility rates (EIA-861- schedules 4A & 4D and EIA-861S) from the most recent year (2024) to isolate rates from the state’s six investor owned utilities. The percentage increase was then applied to the six utilities’ 2024 rates to estimate bundled commercial rates for 2026.

Sources

EIA Electric Sales, Revenue, and Average Price
https://www.eia.gov/electricity/sales_revenue_price/

EIA Electric Power Monthly
https://www.eia.gov/electricity/monthly/

EIA Electricity Explained — Factors affecting electricity prices
https://www.eia.gov/energyexplained/electricity/prices-and-factors-affecting-prices.php