FirstEnergy Rate Increase 2023 - Choose Your Supplier
FirstEnergy Energy Rate Increase 2023
Is the FirstEnergy rate increase in 2023 weighing you down? Starting in June, FirstEnergy customers in Northeast Ohio can expect to see an almost doubled cost of power reflected in their electricity bills.
The new FirstEnergy base price will be 10.2 cents per kilowatt-hour, up 93% from the current rate of 5.3 cents per kilowatt-hour.
Customers of FirstEnergy subsidiaries, such as Ohio Edison and the Illuminating Company, will experience this increase from June 2023 to May 2024 if they are on the standard service offer. The usage part of a customer’s bill is based on how much electricity they use while the other half is a set price that FirstEnergy charges to distribute power to homes, which accounts for 40% of a customer's bill on average.
The reason behind this price hike lies in how Ohio's energy market is established, with utilities like FirstEnergy buying electricity at auctions for the standard service offer and then passing the power and its costs on to consumers. In recent times, FirstEnergy has had to pay significantly more for power, with the most recent auction resulting in a price of $83.75 per MWh. This, along with expenses such as the cost of running auctions and renewable electricity sources, is included in customers' bills.
FirstEnergy customers aren't the only ones to be affected. Both AEP Ohio and Duke Energy have increased their rates as well.
How Can Avoid the FirstEnergy Rate Increase?
While customers can shop for their electricity supplier on the open market, many people in the Cleveland area receive their electricity by default through FirstEnergy's standard service offer.
We suggest any FirstEnergy customers pay closer attention to your electricity bills and switch to a cheaper option on the open market if you are not satisfied with the current rates.
Customers who decide to switch should aim to do so during their May meter reading by signing up for a new supplier no later than mid-April to avoid timing issues.
Ananta Energy can assist Ohioan business owners in selecting a new electricity suppliers.
What is FirstEnergy's Service Area?
The Illuminating Company
Including Avon, Cleveland, Lakewood, North Olmstead, and Painesville.
Ohio Edison
Including Akron, Ashland, Elyria, Mansfield, and Youngstown.
Toledo Edison
Including Archbold, Bryan, Delta, Toledo, and Wauseon.
Updated April 26th:
FirstEnergy Ohio Rider GEN Rates Will More Than Double For Residential and Commercial Customers (Official Tariff Filed)
The FirstEnergy Ohio utilities have updated their tariff for the period starting on June 1, 2023. This update includes the new retail rates for energy and capacity charges for residential and general service-secondary customers.
The Rider GEN is the main part of the bypassable SSO that reflects energy and capacity, and there are other riders like reconciliation, renewable compliance, and non-distribution uncollectibles that are also bypassable.
The new Rider GEN rates for residential and general service-secondary customers are going up by more than 110%, from about 5.6 cents per kWh to over 12 cents per kWh. The listed Rider GEN amounts reflect both the energy and capacity charges, which are charged on a per kWh basis. These rates are for the standard customer class and don't include any optional time of day rates.
