What is generation and how is it priced?

Generation is the first stage of getting electricity to your home or business. Whether from older sources like coal or renewable methods like solar and wind, generated electricity is then transmitted via lines and distributed to homes and businesses.

AES Ohio, along with other utilities in the state, participates in a market-based auction for generated electricity. An auction is a competitive process for procuring electric generation.

The auction is conducted by an independent third party with oversight by the Public Utility Commission of Ohio (PUCO). The auction results are not within the control of AES Ohio. Each utility has a different date for their auction.

Customers can find their supplier on the bill statement under "Supply Charges," as in the illustration below:



Market conditions at the time of the auction

AES Ohio participated in two wholesale generation auctions on October 3, 2023, and April 2, 2024. During an auction, wholesale suppliers bid is to serve our customers their generation supply needs, and pricing is based upon market conditions on the day of the auction.

  • After filing with PUCO, the blended rate resulted in a $23 or 17% decrease for a typical SSO residential customer using 1,000 kWh per month beginning June 1, 2024, for one year.
  • AES Ohio's typical residential “Price to Compare” for the generation supply portion of your bill for the period of June 1, 2023 to May 31, 2024 is $0.0858/kWh.


Customers who have AES Ohio as their supplier

The pricing reflects variable market conditions due to inflation, price of natural gas and other factors. AES Ohio passes on the market prices with no mark-up from the auction to SSO customers, who will see their generation rates decrease beginning June 1, 2024, for one year.

The market-based auction for generation is separate from AES Ohio’s investment and rates for transmission and distribution cases that are subject to PUCO approval.

Calculate your rates

Use our bill calculation spreadsheets to better understand the AES Ohio charges that make up your bill.


PUCO approves AES Ohio distribution rate case

On December 14, 2022, the Public Utilities Commission of Ohio (PUCO) issued its order regarding the AES Ohio distribution rate case for long-term reliability investments made across the 24-county service territory. Under the order, AES Ohio is approved to recover the Company’s investments in its network to ensure reliability for customers. The PUCO authorized an annual revenue increase of $75.6 million, which will take effect once its pending Electric Security Plan (ESP) is approved, expected in mid-2023. In the interim period there will be no impact to customer rates. Even with the approved increase, AES Ohio’s transmission and distribution rates will remain the lowest in Ohio among investor-owned utilities. Read more.


Payment assistance programs for residential customers

The state of Ohio has programs available based on your household income and other eligibility requirements. For more information, visit the Ohio Department of Development.

  • Utility bill payment assistance or help finding lower-cost options contact United Way 211.
  • AES Ohio provides emergency relief funding to customers through the Gift of Power program. Learn more.
  • AES Ohio offers three pay agreement options available to help residential customers with past due balances. Learn more.


What can you do to manage your energy costs?

In Ohio, customers can buy their electric generation from any PUCO-certified supplier. Understand your options to make the best choice for you. You have the power to choose.

How it works

Electric choice gives you the ability to choose who supplies the generation of your electricity. You can choose a supplier based on what is important to you. You may find the cost of your electricity is lower if you buy it from certain suppliers. Or you may find some suppliers offer add-on services that you want to buy. The Public Utilities Commission of Ohio (PUCO) offers the Energy Choice Ohio “Apples to Apples” website energychoice.ohio.gov/ApplestoApples to help you compare the different offers available to you.

For a quick comparison, below is the blended price for generation from other local distributors.

Blended Price 2024-2025 Delivery Year
Duke: $73.03
FE Ohio: $73.89
AEP Ohio: $69.09
AES Ohio: $80.09

Budget billing

Customers may want to consider enrolling in budget billing. AES Ohio calculates your unique budget billing amount based on your historical usage. You will be billed the same amount each month. Learn more about Budget Billing.

Energy savings tips

Additionally, learn more about how your home uses energy, how you can save energy and spend less on your energy bill here