How to select an electric, gas supplier

By James Burkhamer

Guest Contributor

Residents might have options for their electric and natural gas suppliers. This applies if you use the electric utility AES Ohio, or one of the gas utilities (CenterPoint or Columbia Gas). However, this does not apply for electricity customers in the Logan County Electric Coop.

In Ohio, every electric and gas customer is automatically defaulted to the utility’s supply rates. This default rate is known as the “price to compare” on the electricity side, and the “SCO” rate on the natural gas side.

Currently, AES Ohio is charging $0.1086 per kilowatt-hour (kWh) through May 2027. The rates for the natural gas utilities change monthly, charged per hundred feet of natural gas used (ccf).

The utilities do not generate the power and gas themselves, they purchase the supply through a series of auctions. However, because of deregulation laws, Ohio utility customers have options to find better rates if they so choose.

Local communities recognize the volatile and rising energy costs facing customers. The energy consultant AGE/Priority Power (Priority) consults with towns on aggregation programs to help manage these costs.

Residents of Bellefontaine and other communities in Logan County have voted to use Priority for community aggregation programs. When this happens, Priority bids the total “aggregate” electric and gas usage for residents of the entire town to large energy suppliers. This allows residents to have a fixed supply rate for electricity and natural gas, in some cases lower than the utility.

For Bellefontaine, Priority secured an electric rate of $0.0908 per kWh through the supplier Dynegy through May 2028. They also secured a fix natural gas rate of $0.6349 per ccf with AEP Energy through November 2027 (Priority press release September 2025).

Residents are opted into these programs automatically, however mail was sent last year to allow residents to opt out if they chose.

If this sounds confusing, it is. The best way to verify your situation is to look at your utility bill, which will indicate your energy supplier and the supply rate.

If your AES Ohio electricity rate is $0.0908 per kWh with Dynegy, you’re in the aggregation and probably don’t need to do anything. This rate is well under the AES “price to compare” rate of $0.1086 per kWh.

If your CenterPoint gas rate is $0.6349 per ccf with AEP Energy, you’re in the aggregation, and might want to look at other options. (Other communities such as West Liberty and DeGraff are on different aggregation programs).

Your power and gas supply rate might be something different than the aggregation rates, either from an earlier contract or from the utility itself. If your electric rate is $0.1086 per kWh, you are defaulted to the utility.

Natural gas is a little more complicated because the utility rates change monthly. Nobody should EVER be on a variable natural gas rate, because bill skyrocket in the winter, if your home is heated by natural gas. In this case, not only do you use a lot more gas, but the rate per ccf goes up because of high demand.

When temperatures dipped below zero in February this year, the rate per ccf was over $1.00 per ccf.

Utility consumers have an option to shop outside the utility AND aggregation rates, if they so choose.

The Public Utilities Commission of Ohio (PUCO) has set up a marketplace for electricity and natural gas, known as “apples to apples”. The website is energychoice.ohio.gov. Here, energy suppliers advertise their offers, which can change daily with the energy markets. Savvy consumers can find deals on here, however one must be VERY careful.

To navigate the site, simply choose “electric” or “gas” and then choose “compare offers”. Then under the residential tab, select the correct utility (AES, CenterPoint, or Columbia). At this point, a vast array of energy suppliers and rates will appear. This list can be sorted by price (low to high) by clicking on the price header.

The lowest prices are always one-month variable, which is NEVER a good idea. These introductory variable rates roll into a high contract rate if you’re not paying attention.

The best option is to look for 12, 24 or 36 month rates. Also, ONLY look at options where there is no monthly fee and no early termination fee.

Renewable content rates are higher because the extra money flows into “green” energy projects, such as windmills and solar panels. If that’s not a concern for you, ignore those options as well.

For the really savvy consumers, the rate matrix can be downloaded into a spreadsheet which makes the process much easier. If you so choose.

On the electricity side, the aggregation rate of $0.0908 through 2028 is a good for (for now). The AES rate of $0.1086 per kWh is NOT a good deal. Keep in mind that electricity rates are projected to keep rising because of higher demand from data centers, coupled with constrained generation supply on the power grid.

If you wait until fall 2027 for the next possible aggregation, the rates might be substantially higher then $0.11 per kWh or beyond.

It’s really a matter of risk and reward. You can secure a slightly higher 36-month now, or roll the dice and wait on the energy markets to decide for you.

Also keep in mind that if you select an option with zero termination fees, you can exit a contract without penalty and select a new supplier. If you so choose.

For natural gas, you’ll definitely want a fixed-price contract for winter price protection, if you aren’t part of the aggregation. In the interest of full transparency, there are MUCH better deals on the PUCO website than AEP Energy’s aggregation rate of $0.6349 per ccf.

As of July 2026, there are 36-month offers less then $0.60 per ccf. Natural gas rates are also project to steadily rise because of rapidly increasing exports of gas to overseas customers. For comparison’s sake, in 2024, natural rates were in the $0.40 neighborhood.

In conclusion, deregulated free markets are all about choices. You can do nothing and just pay whatever utilities are charging – or you can visit PUCO’s “apples to apples” site and play the markets.

Aggregations are sometimes good deals, and sometimes not. It all depends on when the consultant (Priority) bids out the town’s energy.

In Bellefontaine’s case, electricity came out really good, while natural gas was disappointing.

Remember, be careful on “apples to apples” with intro rates, renewable content, termination charges, and monthly fees. Also, longer contracts are better these days because of volatility and rising energy markets.

For residents, nonprofits, and small business – please reach out to [email protected] with questions.

James Burkhamer is the owner of Miami Valley Power and Gas, a local energy consultant dedicated to helping small businesses and nonprofits reduce their risk and spending. Learn more at www.mvpg.org. ■