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Energy Choice: How to Spot a Bad Apple

How to Spot a Bad AppleThe Public Utilities Commission of Ohio (PUCO) requires Ohio energy marketers to list their electric and natural gas offers on its Energy Choice Ohio website, also known as "Apples to Apples." Some offers are good apples. But many can be bad or even rotten.

The Office of the Ohio Consumers’ Counsel (OCC) wants the PUCO to remove all outrageously-priced energy offers from its Apples to Apples website. But, for now, some very rotten offers are still listed.

Why do I have to choose a supplier?

In Ohio, you generally don't get to choose your local utility, the company that delivers your energy through wires or pipes. But you can choose which company supplies the electricity or natural gas that runs through those wires or pipes. You can also choose to have your energy supplied through your local utility. This is called the standard offer (or default rate).

 

Or you can choose to have your energy supplied by a marketer or government aggregator. Learn more about the different types of offers and how to choose the right one for you with OCC’s “How to Make Wise Energy Choices” fact sheet.

 

Picking Natural Gas “Apples” from a Marketer

Columbia Gas of Ohio's Standard Offer (SCO)

$0.4288 per Ccf

Bad Apple Example: Tomorrow Energy Corp.

$1.57 per Ccf

Good Apple Example: Santanna Energy Services

$0.3606 per Ccf

What this means: A typical household would pay more than $1094 more per year at the Bad Apple rate compared to the utility's Standard Choice Offer (SCO) rate!

 

Picking Electric “Apples” from a Marketer

AEP Ohio’s “Price to Compare”

$0.077 per kWh

Bad Apple Example: Ambit Northeast, LLC

$0.1220 per kWh

Good Apple Example: Santanna Energy Services

$0.0493 per kWh

What this means: A typical household would pay almost $405 more per year at the Bad Apple rate compared to the utility’s Standard Service Offer (SSO) or “Price to Compare” rate listed on the bill!

*Price data above was found at energychoice.ohio.gov in Summer 2024. Sample good apple rates are fixed priced rates. Consumers may prefer variable prices, however they should watch variable price agreements carefully for unexpected spikes.

The Bottom Line:

When considering a new electric or natural gas supplier, it's important to compare different offers. The PUCO’s "Apples to Apples" website can help you do this. You can also read OCC’s "How to Make Wise Energy Choices" fact sheet to learn more about different offers and how to choose the right one for you.

 

Switching to an energy marketer can be risky. Government aggregation can be a safer way to save money on your monthly energy bills because you can opt-out at any time with no fees or penalties. It's also historically been safe to choose your utility's standard offer. The natural gas Standard Choice Offer (SCO) prices are still a good option for consumers.

 

When selecting marketers, pay attention to any monthly fees and consider avoiding contracts with high termination fees. Offers for short periods of time such as one or two months may be teaser rates that will increase quickly once the introductory period ends. You should also know your consumer rights when it comes to energy marketers. Learn about them with OCC’s Energy Choice: Know Your Rights! fact sheet.


Definitions:

  • Standard Choice Offer (SCO): The utility's price for natural gas (default rate) for consumers who don't pick a different supplier. The SCO price is based on market rates and set by a competitive auction process.
  • Standard Service Offer (SSO): The utility's price for electricity (default rate) for consumers who don't pick a different supplier. Listed as the Price to Compare on the bill. The SSO price is set by a competitive auction process.

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