Fixed Rate Electricity in Ohio vs Variable Rates

What is fixed rate electricity in Ohio?

The glossary of the Public Utilities Commission of Ohio (PUCO) defines a fixed price as "an all-inclusive per kWh price that will remain the same for a fixed amount of time" (PUCO glossary). A kilowatt hour (kWh) is the unit your electric meter counts. Your contract should state the price and the dates the term runs.

Fixed does not mean your whole bill stays the same. Your usage still changes the total. The supplier's price covers the electricity itself, and your utility's service and delivery charges come on top, which the contract must say (OAC 4901:1-21-12).

A supplier may also add a monthly fee, which PUCO's glossary describes as a fixed monthly charge in addition to a rate based on usage. The rules let a supplier lower its price per kilowatt hour during a contract without your consent if no other term changes (OAC 4901:1-21-12).

How does a variable rate electric plan work in Ohio?

PUCO's glossary defines a variable price as "an all-inclusive per kWh price that can change, by the hour, day, month, etc., according to the terms and conditions in the supplier's disclosure statement" (PUCO glossary).

That statement has to explain the changes. A variable-rate contract must give either a formula based on publicly available indices or data, or an explanation of the factors that make the price vary, including related indices and how often the price can change (OAC 4901:1-21-12). Ohio rules also bar offering a variable price that is not based on verifiable factors (OAC 4901:1-21-05).

A variable rate is not your price to compare. The price to compare is the per-kWh benchmark for your utility's default supply. A variable offer follows the supplier's own formula or factors, so it can move on a different schedule from the default.

What is a fixed introductory rate that turns variable?

Some offers start with a fixed introductory rate that converts to a variable rate when the fixed period ends. The chart's Introductory Price column flags offers with an introductory price, and the offer details say what follows it; our guide to the Apples to Apples chart explains the column.

Ohio law requires two warnings. The supplier must send the first notice 90 to 60 days before the fixed rate ends and the second 45 to 15 days before it ends (Ohio Revised Code 4928.102; OAC 4901:1-21-20, effective January 1, 2026).

Both notices give the expiring fixed rate, the date it ends and the address of PUCO's comparison site, and remind you that your bill carries a price-to-compare notice. The second notice also gives the first variable rate. After the change, the supplier must send an annual notice that you are on a variable rate and that other fixed contracts are available.

How do the risks of fixed and variable electric rates differ?

Each type carries a different risk. The table sets them side by side.

With a fixed rate, the risk is being locked in. If your utility's default falls below your rate, you keep paying your rate until the term ends, or you pay a fee to leave if the contract has one. Ohio rules require the contract to state any penalty for leaving early (OAC 4901:1-21-12), and for mail, fax and door-to-door sales the dollar amount must be in your enrollment documents before you sign (OAC 4901:1-21-06).

With a variable rate, the risk is a price you cannot plan around. You may pay less in some months and more in others, and the contract decides how fast the price can move. If the supplier explains only the factors behind the price instead of giving a formula, Ohio rules do not allow an early termination fee. Check which option your contract uses.

What does the arithmetic look like with made-up rates?

The example uses 750 kWh a month, a usage we chose for illustration, over a 12-month term. Every rate below is made up. None is an offer, a forecast or anyone's real price, and each covers supply only, with no delivery charges.

The fixed plan holds 9.80¢ per kWh all year. The first variable plan starts at 8.50¢ per kWh and rises 0.40¢ per kWh each month. The second starts at 11.00¢ per kWh and falls 0.35¢ per kWh each month.

If prices rise as in the first path, the variable plan costs $81.00 more over the year. If they fall as in the second, it costs $65.25 less. The same plan type comes out higher in one case and lower in the other, which is why we do not call either one better.

Fees change the picture. At 750 kWh, each one cent of rate difference per kilowatt hour moves your supply cost by $7.50 a month. A made-up $100.00 early termination fee equals more than 13 months of that gap, so leaving a fixed plan early to chase a lower rate may not pay.

How much does Ohio's default electric rate move between periods?

Plan type matters most when prices move. The table shows how far each of six electric defaults has moved between the periods we have on file. The default is the price to compare, not a variable offer's rate, so the table shows how the benchmark behaves and not what a variable plan would have charged.

The largest one-step rise on file is AES Ohio's move from 4.81¢ per kWh (June 1, 2021 – May 31, 2022) to 10.91¢ per kWh (June 1, 2022 – May 31, 2023), up 126.8%.

All six defaults have a published rate for today. Here is how each compares with the matching period a year earlier:

• AEP Ohio: 10.19¢ per kWh for October 1 – December 31, 2026, up 4% from 9.80¢ per kWh (October 1 – December 31, 2025), the same period a year earlier.
• Ohio Edison: 11.07¢ per kWh for October 1 – December 31, 2026, up 21.5% from 9.11¢ per kWh (October 1 – December 31, 2025), the same period a year earlier.
• The Illuminating Company: 11.24¢ per kWh for October 1 – December 31, 2026, up 22.7% from 9.16¢ per kWh (October 1 – December 31, 2025), the same period a year earlier.
• Toledo Edison: 11.26¢ per kWh for October 1 – December 31, 2026, up 19.4% from 9.43¢ per kWh (October 1 – December 31, 2025), the same period a year earlier.
• Duke Energy Ohio: 10.49¢ per kWh for October 1 – October 31, 2026, up 2.8% from 10.20¢ per kWh (October 1 – October 31, 2025), the same period a year earlier.
• AES Ohio: 10.86¢ per kWh for June 1, 2026 – May 31, 2027, up 14.9% from 9.45¢ per kWh (June 1, 2025 – May 31, 2026), the same period a year earlier.

These are past moves only. They do not say where any rate goes next. Each utility's page in our rate history series charts its periods.

What should you check before choosing between fixed and variable?

• The term. A longer fixed term holds the price longer, and it keeps you in the contract longer.
• The fee to leave early, in dollars. Your contract must state the penalty for ending it early.
• Any monthly fee. A fixed monthly charge adds to your cost whatever your usage.
• What happens at the end. Ask what rate applies after the term and whether the contract renews on its own. A highlighted statement must tell you if it can renew without your consent, even at a new rate.
• Whether you might move. You may leave without penalty if you move outside the supplier's service area or into an area where it charges a different price.

Staying on your utility's default is also a choice, and PUCO says you are not required to shop (Energy Choice Ohio FAQs). It can be the sounder pick when every fixed offer you would take sits above your price to compare, or when a monthly fee or early termination fee would wipe out the gap. Our guide to the standard service offer explains how the default is set, and our electric choice Ohio overview covers who can shop.

A fixed plan suits people who want a steady supply price and will stay through the term. A variable plan suits people who will check their rate each month and whose contract lets them leave without a fee. Neither is always cheaper.

If you are in the Percentage of Income Payment Plan (PIPP), you cannot choose a supplier; our energy assistance guide explains the program. If your bill has already jumped, see why your electric bill may be high. To compare real offers, use PUCO's Apples to Apples chart; our electric chart guide shows how to read it. Read our switching guide for the steps.