What we learned about why Ohio electric bills can rise despite cheaper supply rates

MetroOhio electric bills include separate charges for electricity supply, transmission and distribution, meaning customers can shop for a lower supply rate while other parts of the bill still rise.AP Photo/Joshua A. BickelBy Michael Johnson, cleveland.comcleveland.com Express DeskCLEVELAND, Ohio — Shopping for a cheaper electricity supplier can lower one part of an Ohio household’s bill while other charges continue rising.Ohio’s Energy Choice program lets eligible customers choose who supplies their electricity. It doesn’t let them choose the utility that delivers it or control regulated transmission and distribution charges.These are five takeaways from the original article, which explained how supply prices, delivery charges and growing demand affect electric bills.1. The rate customers shop for covers only part of the billResidential bills generally include generation, transmission and distribution charges, although labels and additional charges vary by utility.Generation pays for the electricity itself. Transmission supports the high-voltage regional grid, while distribution supports local equipment that delivers electricity to homes.The Ohio Consumers’ Counsel says generation typically accounts for about half of a residential bill, with transmission and distribution making up the other half. That’s a general guide, rather than a fixed breakdown for every customer.Switching suppliers doesn’t eliminate delivery charges. Increases in those charges can outweigh savings on electricity supply.2. AEP’s transmission increase shows how charges can move in opposite directionsPUCO approved higher AEP Ohio transmission charges March 18, effective with April billing. AEP said the transmission portion would rise about $7.90 monthly for a residential customer using 1,000 kilowatt-hours.That figure describes the transmission increase, rather than the change in the entire bill. Generation costs for customers using AEP’s default supply offer were dropping at the same time.A separate distribution settlement included about $105 million in federal tax-related credits, according to the Ohio Consumers’ Counsel. OCC nevertheless said most residential customers would see a net increase because higher transmission charges outweighed credits and other changes.3. FirstEnergy’s proposed distribution increases would apply regardless of supplierFirstEnergy has requested three years of distribution-rate increases. The proposal remains pending before PUCO.For residential customers using 1,000 kilowatt-hours monthly, the proposed monthly increases would total about $15.45 for The Illuminating Company by the third year. Comparable totals would be $12.78 for Ohio Edison and $15.90 for Toledo Edison.Those charges concern the local delivery system. Choosing another electricity supplier wouldn’t avoid them, although supply savings could offset some or all of an increase.4. Data centers contribute to demand growth, but don’t explain every chargePJM Interconnection says data centers drive much of the regional grid’s demand growth. It also identifies vehicle and building electrification and some manufacturing growth.PJM says power plants are retiring faster than new resources are being added. Those pressures don’t establish that every Ohio bill increase results from data centers.Nor do existing customers necessarily fund every project. AEP says SB Energy has committed $4.2 billion for transmission investments needed for a planned Piketon data-center campus, with the commitment intended to help protect other customers from transmission-rate increases.5. Supplier comparisons should include contract terms and the rest of the billConsumers can compare offers through PUCO’s Energy Choice Ohio “Apples to Apples” tool.Along with the price, customers should compare whether rates are fixed or variable, contract length and early termination fees.When a total bill rises, reviewing supply, transmission and distribution charges separately can help identify the source. A lower supplier rate can still provide savings even when increases elsewhere push the overall bill higher.Michael Johnson brings nearly four decades of newspaper experience in reporting, editing, newsroom leadership, page design and digital publishing. He has led daily and weekly newsrooms in Pennsylvania,...