How much can I expect to save with an electricity supplier in Ohio?
ResidentialMar 14, 2013
A commonly asked question we hear is “How much will I save?” It’s an important question to ask, whether you are shopping for an electricity supply provider or you already have made the choice. To that end, we thought we would share some helpful tips on how residential customers in Ohio can determine their savings. If you live in a different state, please call our Customer Care Team at 1-866-258-3782 or chat online. Start with your local utility bill (AEP Ohio, Duke Energy Ohio, Dayton Power and Light, Ohio Edison, Toledo Edison, The Illuminating Company).
All utilities participating in the Ohio Energy Choice Program provide residential customers with a “Price to Compare” (PTC) on their monthly bill. The “Price to Compare” is the current price per kilowatt-hour (kWh) that you pay for generation and transmission (where applicable) service with your utility. In order for you to save money off current rates, this price is what an electricity supply provider should beat.
Residential PTC calculations and methodologies differ based on the relevant utility in the State of Ohio. Some PTCs fluctuate based on the amount of power used, and some PTCs incorporate summer and winter rates. Regardless of the form of PTC your utility utilizes, it should provide a message on your monthly bill that identifies your applicable PTC. Since most of us use more electricity in the summer due to air conditioning, you are more likely to see bigger savings during these months than in the winter. Calculating your potential savings:
Once you find your PTC on your current utility bill, just follow these simple steps to determine your potential savings amount for that month.
1. Take your “Price to Compare” and subtract the electricity supply provider’s offer price. This equates to your savings per kWh. Example: 8.64 cents per kWh (PTC) – 6.29 cents per kWh (Electricity Supply Provider) = 2.35 cents per kWh (savings per kWh)
2. Next, multiply your savings per kWh by your monthly usage (kWh) and then divide by 100 to determine your savings amount for the month. Example: 2.35 cents per kWh (Savings) x 1,200 kWh (Monthly Usage) = 2,820/100 = $28.20
Your “Price to Compare” will continue to be included on your monthly electric bill once you have selected an electricity supply provider so you can keep tabs on what you are saving each month. However, keep in mind that some months may show higher savings than other months. You’ll want to consider your savings after being with a provider for an entire year, especially understanding that you may save more in the summer months when power use is typically higher. Other factors to consider when choosing an electricity provider.
In some cases, the lowest price may not be your only consideration when choosing an electricity supply provider. Other factors to think about are:
Does the supplier provide Renewable Energy Options?
Contract length and terms
Cancellation fee amount
Add-ons or incentives
Reputation of the supplier
We hope these tips are helpful when determining your savings. If you have further questions, you can always contact our Customer Care Team at 1-866-258-3782 or chat online with us.
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