Illustrative Case: Ohio MSO Aggregates Load Across AEP and FirstEnergy for Supply
This is not a real client. It is a worked example of an Ohio MSO with two cultivation sites on AEP Ohio, three dispensaries on FirstEnergy's Ohio Edison, and one processor on Duke Energy Ohio that aggregated 4.8 million kWh for a single fixed CRES portfolio contract while keeping five separate delivery accounts.
By Jason Taken, Founder, Jaken Energy
Updated September 12, 2026Representative example, not a named clientThis is a representative example built from typical facility profiles, published utility tariffs, and public rate data, not a named client engagement. The numbers show how the math works in this state and facility type. Your own results depend on your load profile, utility territory, and market timing.
This case study describes a representative Ohio MSO portfolio built from public tariff data and labeled assumptions. It is not a real client, and the savings figures are modeled, not measured.
The facility and starting situation
Assume a privately held operator with six Ohio cannabis licenses after S.B. 56 merged adult-use and medical into dual-use permits effective March 20, 2026 [oh-lsc-sb56-final-analysis]. The portfolio includes:
- Site A: Level II cultivator near Akron on FirstEnergy's Ohio Edison, 12,000 square feet of canopy, assumed 920,000 kWh per year, peak demand 210 kW.
- Site B: Level I cultivator near Columbus on AEP Ohio, 48,000 square feet of canopy, assumed 2.4 million kWh per year, peak demand 420 kW.
- Sites C, D, E: Three dispensaries in Cleveland suburbs on Ohio Edison, each 4,000 to 5,000 square feet, assumed 11,000 kWh per month each, peak demand 35 to 42 kW.
- Site F: Processor in Cincinnati on Duke Energy Ohio, assumed 680,000 kWh per year, peak demand 165 kW.
Combined portfolio load is about 4.8 million kWh per year. Ohio counted 37 cultivators, 46 processors, and 281 dispensaries as of February 18, 2026 [oh-lsc-sb56-final-analysis]. Every site is in PJM [oh-energychoice-glossary], but FirstEnergy's Ohio operating companies sit in the ATSI zone while AEP Ohio and Duke Energy Ohio use different PJM zone tags for capacity settlement.
Each site opened between 2024 and 2026. Site managers signed leases first and left supply on each utility's Standard Service Offer. The CFO inherited five different SSO Price to Compare benchmarks that reset every June 1 from PUCO-supervised auctions [oh-energychoice-glossary]. FirstEnergy's Rider GEN rate for small commercial GS-Secondary customers rose about 6 percent on June 1, 2026 to 9.38 to 9.45 cents per kWh depending on operating company [ecm-fe-ohio-sso-2026].
Ohio's climate varies by site but statewide normals are 5,689 heating degree days and 792 cooling degree days [noaa-cag-ohio]. Cultivation sites carry dehumidification year-round; dispensaries spike on summer afternoons.
What the baseline bills showed
The table summarizes each site's modeled all-in cost. Tariff structures are cited; usage and totals are inputs.
| Site | Utility | Facility type | Annual kWh (assumed) | Peak kW (assumed) | Modeled all-in rate | Modeled annual spend |
|---|---|---|---|---|---|---|
| A | Ohio Edison [fe-toledo-edison-tariff] | Level II cultivation | 920,000 | 210 | 12.1 cents | $111,000 |
| B | AEP Ohio [aep-ohio-rates] | Level I cultivation | 2,400,000 | 420 | 11.6 cents | $278,000 |
| C | Ohio Edison [fe-toledo-edison-tariff] | Dispensary | 132,000 | 38 | 13.4 cents | $17,700 |
| D | Ohio Edison [fe-toledo-edison-tariff] | Dispensary | 128,000 | 35 | 13.4 cents | $17,200 |
| E | Ohio Edison [fe-toledo-edison-tariff] | Dispensary | 136,000 | 42 | 13.4 cents | $18,200 |
| F | Duke Energy Ohio [duke-ohio-choice-tariffs] | Processor | 680,000 | 165 | 12.8 cents | $87,000 |
| Total | 4,796,000 | ~$529,000 |
The EIA June 2026 Ohio commercial average was 13.77 cents per kWh and the industrial average was 9.89 cents [eia-epm-5-6-a]. Cultivation and processing sites landed between those benchmarks because of demand-metered delivery. Dispensaries on FirstEnergy Rate GS pay a capacity charge per kW of billing demand: base-sheet figures of $10.98 for the first 5 kW and $8.039 per kW above 5 kW before riders, with billing demand set as the greatest of highest 15-minute demand, 5 kW, or contract demand [fe-toledo-edison-tariff].
No site had chosen a CRES supplier. The PUCO Apples to Apples chart lists small commercial offers; accounts above small-business size are quoted individually [oh-energychoice-glossary]. The MSO had been comparing six separate broker emails with incompatible terms.
What changed
The operator ran one portfolio RFP in April 2026 covering all six account numbers [oh-energychoice-glossary].
Single supplier, one fixed price with zonal pass-through. The winning bid was a 36-month fixed energy price of 8.7 cents per kWh on all 4.8 million kWh, plus actual PJM capacity and transmission pass-through by zone. AEP Ohio sites settled in the AEP Ohio zone; Ohio Edison sites in ATSI; Duke Energy Ohio in Duke's Ohio zone. The supplier charged one admin fee of 0.08 cents per kWh instead of six separate margins.
Consolidated billing election. H.B. 15 allows CRES suppliers to bill customers directly [occ-hb15]. The MSO kept utility consolidated billing so store managers still received one bill per site with the supplier line embedded, matching the enrollment option described on Energy Choice Ohio [oh-energychoice-glossary].
Per-site delivery class audit. Before enrollment, an engineer verified Site B on AEP Ohio GS-3 and Site A on Ohio Edison GP secondary [aep-ohio-rates] [fe-toledo-edison-tariff]. Two dispensaries had July peaks above 40 kW; the operator scheduled LED maintenance before any location approached a demand-class threshold change.
Portfolio load factor as pricing lever. Cultivation Sites A and B run long daily lighting cycles; dispensaries run retail hours. Combined load factor was roughly 58 percent in the interval data package, which the supplier cited when beating single-site quotes by 0.6 to 1.1 cents per kWh.
June 1 timing. Contracts executed May 15, 2026, effective before the SSO reset [oh-energychoice-glossary]. The CFO locked supply before FirstEnergy's 6 percent small-commercial SSO step [ecm-fe-ohio-sso-2026] and before summer cultivation load at Site B.
The Ohio switching guide covers enrollment per account. The multi-site operator energy page covers portfolio strategy.
The math after
Compare modeled SSO default across six sites to the portfolio contract. Supply-side only.
| Component | Before (annual, six sites on SSO) | After (annual, portfolio CRES) | Notes |
|---|---|---|---|
| Supply + transmission | ~$548,000 at 11.4 cents avg | ~$418,000 at 8.7 cents energy | Fixed energy |
| PJM capacity + NITS pass-through | Included above | ~$72,000 | Zonal actuals |
| Supply-side total | ~$548,000 | ~$490,000 | |
| Delivery (all utilities) | ~$529,000 | ~$529,000 | Unchanged |
| Modeled all-in | ~$1,077,000 | ~$1,019,000 | ~$58,000/year |
On supply alone, the portfolio saved about $58,000 a year, roughly 1.2 cents per kWh on 4.8 million kWh. Delivery was identical because no utility tariff class changed. Dispensaries saved the largest percentage because SSO small-commercial rates moved most on the June reset [ecm-fe-ohio-sso-2026]. Site B cultivation saved the largest absolute dollars because of kWh volume.
Budget certainty mattered as much as cents. One fixed energy number through 2029 simplified board reporting and the S.B. 56 expansion pro forma for a second flowering wing at Site B [oh-lsc-sb56-final-analysis].
What did not work
Six separate fixed contracts in 2025. An earlier attempt let each site manager sign the lowest postcard rate. Three contracts had incompatible capacity pass-through language, and two carried $25,000 early termination fees that blocked portfolio consolidation until they expired.
Merging meters physically. Ohio delivery accounts are premise-specific. Combining six locations would require landlord consent, rewiring, and separate cannabis license premises. The MSO aggregated financially in the supplier contract instead.
Ignoring zonal differences. An initial broker quote averaged PJM capacity at one statewide adder. When the operator asked for zonal pass-through, the price moved 0.3 cents per kWh. ATSI capacity for Ohio Edison sites was not interchangeable with AEP Ohio's zone tag [oh-energychoice-glossary].
Duke site as an afterthought. Site F was enrolled two weeks later because the processor manager missed the RFP deadline. The supplier honored the portfolio rate but charged a one-time $500 late-enrollment fee.
Assuming H.B. 6 OVEC rider still applied. House Bill 15 repealed the H.B. 6 OVEC legacy generation rider [occ-hb15]. A 2024 bill analysis that included OVEC was obsolete; the RFP required suppliers to exclude repealed riders from pass-through.
SSO reset versus CRES start dates
Ohio Standard Service Offer prices reset June 1 from PUCO-supervised auctions. Align CRES contract start with SSO benchmark timing when comparing savings. Delivery demand from each utility tariff remains separate per meter [oh-energychoice-glossary].
FirstEnergy versus AEP delivery in one portfolio
Ohio MSOs may hold meters under FirstEnergy, AEP Ohio, Duke, and AES in one portfolio. CRES supply can aggregate; delivery tariffs cannot. Rank sites by per-kW delivery charge before standardizing supply product type across the portfolio [puco-energy-choice].
June 1 SSO comparison each year
Even on multi-year CRES contracts, compare realized all-in price to June 1 SSO reset for budget variance reporting [puco-energy-choice]. Delivery demand remains the largest lever on cultivation sites in FirstEnergy territory in this portfolio model.
Lessons that transfer to other Ohio MSO operators
Aggregate supply once you have three or more sites or two megawatt-hours per month combined. Ohio grants full commercial choice on all four investor-owned utilities [oh-energychoice-glossary]. Specify PJM zonal capacity pass-through when sites span AEP Ohio and FirstEnergy [oh-energychoice-glossary]. Keep delivery audits separate: GS capacity charges on FirstEnergy differ from AEP Ohio GS-2 and GS-3 demand [fe-toledo-edison-tariff] [aep-ohio-rates]. Sign before June 1 SSO resets when auctions move benchmarks [ecm-fe-ohio-sso-2026]. Track H.B. 15 delivery rate cases on their own timeline [occ-hb15]. Do not merge meters; merge procurement. See fixed vs. index vs. block-and-index contracts, the FAQ on supplier choice, and Ohio multi-site operator energy.
Frequently asked questions
Is this a real Ohio multi-site cannabis operator?
No. Site names, load totals, and savings figures are illustrative. The Ohio choice rules, utility territories, S.B. 56 license structure, and tariff references cited come from public sources and the site's Ohio data file.
Can one CRES contract cover meters in both AEP Ohio and FirstEnergy territory?
Yes. A PUCO-certified supplier can serve accounts across Ohio's investor-owned utilities in one portfolio contract. Each account keeps its own delivery utility and tariff class; only supply pricing is aggregated.
Do all four Ohio IOUs sit in the same PJM zone?
All four Ohio investor-owned utilities are in PJM, but FirstEnergy's operating companies are in the ATSI zone while AEP Ohio and others sit in different PJM zones. Portfolio contracts must specify how zonal capacity and transmission pass through.
Will H.B. 15 change how an MSO receives bills?
House Bill 15 allows CRES suppliers to bill customers directly in addition to utility consolidated billing. Delivery charges will also reset through mandatory distribution rate cases by December 31, 2029 and every three years thereafter.
Related reading
- Ohio Cannabis Energy: Electricity Choice, Rates, and Utilities for Licensed Operators
Ohio cannabis electricity: PUCO choice, four IOU territories, PJM capacity, June 2026 rates vs. the U.S., and cultivator incentives after S.B. 56.
- Ohio Multi-Site Cannabis Operator Energy: Portfolio Procurement Across Four IOU Territories
How an Ohio multi-site operator manages supply contracts across AEP, FirstEnergy, Duke, and AES territories in PJM, with staggered terms and aggregation.
- Ohio Cannabis Cultivation Facility Energy: Lighting, HVAC, and Demand Charges Under Four IOUs
What an Ohio indoor grow pays for power: lighting and dehumidification in a 5,689 HDD climate, GS-2 and GS-3 demand classes, a worked cost example.
- Ohio Cannabis Dispensary Retail Energy: Small-Commercial Rates and Supply Choice for Dual-Use Stores
What an Ohio dual-use dispensary pays for power: GS-1 and small commercial classes, retail HVAC and security loads, and CRES supply vs. the Price to Compare.
- How to Switch Electricity Suppliers in Ohio: A Step-by-Step Guide for Cannabis Businesses
How an Ohio commercial account enrolls with a PUCO-certified CRES provider: eligibility, Price to Compare, Apples to Apples, enrollment, and contract rules.
- AEP Ohio for Cannabis Facilities: Delivery Classes, Demand Charges, SSO, and CRES Billing
How AEP Ohio bills a cannabis grow, lab, or dispensary: GS-1 through GS-4, per-kW distribution demand, PJM, Standard Service Offer, and efficiency programs.
- FirstEnergy Ohio for Cannabis Facilities: Three Operating Companies, GS Demand, and SSO Benchmarks
How Ohio Edison, CEI, and Toledo Edison bill cannabis accounts: Rate GS through GT, billing demand rules, Rider GEN SSO, and CRES supply in PJM ATSI.
- Fixed vs. Index vs. Block-and-Index Electricity Contracts
What each supply structure means, who carries price risk, which fits a 24/7 grow load, what pass-throughs do, and a worked 12-month comparison.
- Can Cannabis Businesses Choose Their Electricity Supplier?
Whether grows and dispensaries can shop for electricity supply in deregulated states, what suppliers may ask, and what stays with the utility after you switch.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.
- [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, June 2026 and June 2025 — U.S. Energy Information Administration. Accessed 2026-09-11.
- [oh-lsc-sb56-final-analysis]S.B. 56, 136th General Assembly, Final Analysis (corrected version), April 2, 2026 — Ohio Legislative Service Commission, Office of Research and Drafting. Accessed 2026-09-11.
- [oh-energychoice-glossary]Energy Choice Ohio: Glossary of Terms and Apples to Apples comparison charts — Public Utilities Commission of Ohio. Accessed 2026-09-11.
- [occ-hb15]Governor DeWine Signs House Bill 15, Marking a Win for Ohio Consumers — Office of the Ohio Consumers' Counsel. Accessed 2026-09-11.
- [ecm-fe-ohio-sso-2026]FirstEnergy Ohio Combined Energy, Capacity SSO Rates To Increase Up To 14% For Residential Customers; 6% For Small Commercial — EnergyChoiceMatters.com. Accessed 2026-09-11.
- [aep-ohio-rates]AEP Ohio Electric Rates and Tariffs (Ohio Power Company Tariff Book, September 2026) — AEP Ohio. Accessed 2026-09-11.
- [fe-toledo-edison-tariff]The Toledo Edison Company, P.U.C.O. No. 8, Schedule of Rates for Electric Service (2025 edition) — FirstEnergy. Accessed 2026-09-11.
- [duke-ohio-choice-tariffs]Ohio Customer Choice Rates and Tariffs — Duke Energy Ohio. Accessed 2026-09-11.
- [noaa-cag-ohio]Climate at a Glance: Ohio statewide heating and cooling degree days, 1991-2020 base period averages — NOAA National Centers for Environmental Information. Accessed 2026-09-11.