Ohio Commercial Electricity Rates for Cannabis Facilities: IOU Classes, SSO Benchmarks, and PJM Context
Ohio commercial electricity averaged 13.77 cents per kWh in June 2026, about 3 percent below the U.S. average of 14.19 cents, while industrial customers averaged 9.89 cents. The spread reflects delivery structure: Ohio's four IOUs bill larger classes on peak kW through GS-2 and above schedules, and the Standard Service Offer Price to Compare resets every June 1 from PUCO-supervised auctions with PJM capacity baked in.
Ohio figures last verified 2026-09-11. Full citations in the Sources section.
Ohio vs. the U.S. average
| Sector | Ohio, June 2026 | U.S. average, June 2026 | Ohio vs. U.S. |
|---|---|---|---|
| Commercial | 13.77 cents/kWh | 14.19 cents/kWh | -0.42 cents, about 3 percent lower |
| Industrial | 9.89 cents/kWh | not in state file |
Source: EIA Electric Power Monthly, Table 5.6.A [eia-epm-5-6-a].
The EIA number blends every commercial customer in the state. For a cannabis operator the useful reading is the gap between commercial and industrial averages. Most of that gap is delivery structure and load factor, not a magic discount.
| State | Avg. commercial price | Cannabis market | Energy choice |
|---|---|---|---|
| California | 27.33 cents/kWh | Adult-use + medical | Commercial-only choice |
| Massachusetts | 24.52 cents/kWh | Adult-use + medical | Full commercial choice |
| New York | 23.56 cents/kWh | Adult-use + medical | Full commercial choice |
| Washington, D.C. | 23.38 cents/kWh | Medical only | Full commercial choice |
| Rhode Island | 22.70 cents/kWh | Adult-use + medical | Full commercial choice |
| Maine | 22.24 cents/kWh | Adult-use + medical | Full commercial choice |
| New Hampshire | 21.22 cents/kWh | Medical only | Full commercial choice |
| Connecticut | 19.62 cents/kWh | Adult-use + medical | Full commercial choice |
| New Jersey | 18.47 cents/kWh | Adult-use + medical | Full commercial choice |
| Maryland | 16.84 cents/kWh | Adult-use + medical | Full commercial choice |
| Michigan | 16.63 cents/kWh | Adult-use + medical | Capped commercial choice |
| Illinois | 14.53 cents/kWh | Adult-use + medical | Full commercial choice |
| Delaware | 14.40 cents/kWh | Adult-use + medical | Full commercial choice |
| Ohio | 13.77 cents/kWh | Adult-use + medical | Full commercial choice |
| Pennsylvania | 13.33 cents/kWh | Medical only | Full commercial choice |
| Nevada | 9.83 cents/kWh | Adult-use + medical | Commercial-only choice |
| Texas | 8.66 cents/kWh | Low-THC medical only | Full commercial choice |
Major IOU delivery classes and demand billing
| IOU | Small commercial (typical dispensary) | Demand-metered (typical grow/processor) | Large / primary | Demand charge basis |
|---|---|---|---|---|
| AEP Ohio | GS-1, non-demand [aep-ohio-rates] | GS-2, GS-3 secondary/primary [aep-ohio-rates] | GS-4 transmission [aep-ohio-rates] | Per-kW billed demand on GS-2+ |
| FirstEnergy | GS secondary [fe-toledo-edison-tariff] | GS with billing demand [fe-toledo-edison-tariff] | GP primary, GSU, GT [fe-toledo-edison-tariff] | Per-kW billing demand; Contract Demand floor for new customers |
| Duke Energy Ohio | Rate DM small service [duke-ohio-choice-tariffs] | Rate DS secondary [duke-ohio-choice-tariffs] | Rate DP primary [duke-ohio-choice-tariffs] | Per-kW billing demand on DS and DP |
| AES Ohio | Secondary D19 [aes-ohio-rates] | Secondary/Primary D19-D20 [aes-ohio-rates] | D21, D22 high voltage [aes-ohio-rates] | Per-kW demand on secondary and primary |
Per-kW dollar figures change on tariff filings and rider updates. Confirm current rates on each IOU tariff page before quoting a specific facility [aep-ohio-rates] [fe-toledo-edison-tariff] [duke-ohio-choice-tariffs] [aes-ohio-rates].
Under FirstEnergy's Toledo Edison GS schedule, billing demand is the greatest of highest 15-minute measured demand, 5 kW, or Contract Demand, with new customers' Contract Demand set at 60 percent of expected maximum demand [fe-toledo-edison-tariff]. The GS distribution charge includes a base-sheet capacity charge of $10.98 for the first 5 kW and $8.039 per kW above 5 kW before regularly updated riders [fe-toledo-edison-tariff].
Default supply benchmarks (Standard Service Offer)
Ohio's default supply is the Standard Service Offer, procured through PUCO-supervised wholesale auctions and reset every June 1 [oh-energychoice-glossary]. The comparison benchmark is the Price to Compare on the PUCO Apples to Apples chart [oh-energychoice-glossary].
| IOU | Benchmark name | Reset cadence | Notes |
|---|---|---|---|
| All four IOUs | Standard Service Offer / Price to Compare | June 1 annually | PUCO-supervised auctions [oh-energychoice-glossary] |
| FirstEnergy | Rider GEN energy plus capacity | June 1, 2026 | Small commercial GS-Secondary rose about 6% to 9.38-9.45 cents/kWh [ecm-fe-ohio-sso-2026] |
| AES Ohio | SSO residential benchmark | June 1, 2026 to May 31, 2027 | Residential Price to Compare $0.109/kWh after November 2025 rate settlement [aes-ohio-rates] |
Commercial offers above small-business size are quoted individually, not posted on Apples to Apples [oh-energychoice-glossary]. Large cultivators benchmark against trailing twelve-month supply cost or competitive bids, not a published small-commercial number.
PJM capacity and transmission context
All four Ohio IOUs are in PJM [oh-energychoice-glossary]. Capacity and network transmission charges (NITS) pass through to customers and were sharply higher in the 2025/26 and 2026/27 PJM delivery years [oh-energychoice-glossary]. This shows up in SSO auction prices and in CRES pass-through products. When comparing supplier quotes, confirm whether capacity is bundled at a fixed adder or passed through at market.
See demand charges explained and utility rate classes.
Seasonality and Ohio climate
Ohio averages 5,689 heating degree days and 792 cooling degree days [noaa-cag-ohio]. Cultivators see higher kWh in winter (heating, envelope losses) and higher kW in summer (dehumidification on top of lighting). Dispensaries see summer HVAC peaks on kWh-heavy small-commercial bills. Processors sit in between with batch spikes on top of continuous ventilation.
How to read an Ohio commercial bill
Typical line items:
- Customer charge: fixed monthly fee
- Distribution energy: cents per kWh for delivery
- Distribution demand: dollars per kW of billing demand (GS-2 and above)
- Riders: non-bypassable charges updated on schedule (NMB, GEN, etc.)
- Supply: SSO or CRES generation and transmission
- Taxes and assessments
Delivery lines stay with the IOU regardless of supplier. Supply lines change when you enroll with a CRES provider [oh-energychoice-glossary]. H.B. 15 allows CRES direct billing over the next few years, which may split these onto separate statements [occ-hb15].
Industrial rate eligibility
Ohio industrial customers averaged 9.89 cents/kWh in June 2026 [eia-epm-5-6-a]. Cultivators cannot reclassify as industrial simply by SIC code, but load factor and voltage may qualify large grows for schedules with lower per-kWh delivery. Review GS-3, GP, and primary options with the utility engineer during service application [aep-ohio-rates].
Auditing a bill against this page
Pull the rate schedule code from page one of the bill. Match it to the IOU table above. Multiply billing demand by the current tariff per-kW for demand lines. Compare supply kWh charge divided by kWh against Apples to Apples Price to Compare [oh-energychoice-glossary]. Discrepancies often come from rider true-ups or contract demand floors on FirstEnergy GS [fe-toledo-edison-tariff]. Re-run the audit after each June 1 SSO reset because supply benchmarks shift even when delivery class stays constant [oh-energychoice-glossary]. Document the audit worksheet in each CRES bid package so suppliers see the same baseline you do [oh-energychoice-glossary].
Rider stack and non-bypassable charges
Ohio commercial bills include multiple riders updated on schedule filings: distribution investment, transmission, and legacy generation charges depending on IOU [oh-energychoice-glossary]. H.B. 15 repeals the H.B. 6 OVEC legacy generation rider over time [occ-hb15]. Non-bypassable riders persist on CRES supply accounts [oh-energychoice-glossary]. When comparing supplier quotes, separate rider lines from generation to avoid double-counting savings [oh-energychoice-glossary].
Worked comparison: same kWh, different class
Assume 250,000 kWh monthly use and 350 kW billing demand (inputs). At 13.77 cents/kWh commercial average, energy is about $34,425 [eia-epm-5-6-a]. Add illustrative FirstEnergy GS demand: (350 - 5) x $8.039 = about $2,773 before other per-kW riders [fe-toledo-edison-tariff]. A dispensary on GS-1 without demand billing pays energy and customer charge only [aep-ohio-rates]. Same state average kWh price, different total bill because class structure differs [eia-epm-5-6-a].
When to request interval meter data
Commercial accounts with demand meters can request interval data for procurement and demand charge estimation. Twelve months of intervals before a CRES RFP shows summer dehumidification peaks and winter heating load [oh-energychoice-glossary]. Suppliers price poorly without interval shape on accounts above small-business size [oh-energychoice-glossary].
Tax and assessment lines
Ohio commercial bills include state and local taxes and PUCO assessments below supply and delivery [oh-energychoice-glossary]. These lines persist on CRES accounts [oh-energychoice-glossary]. When normalizing cents per kWh across sites, use the same tax treatment in numerator and denominator [eia-epm-5-6-a]. Industrial rate eligibility requires utility assignment, not self-selection [aep-ohio-rates].
Comparing Ohio to Michigan capped choice
Ohio commercial average 13.77 cents/kWh vs Michigan 16.63 cents/kWh in June 2026 [eia-epm-5-6-a]. Ohio offers immediate CRES choice; Michigan requires queue [mpsc-choice-2025-report]. MSOs in both states should not apply Michigan full-service assumptions to Ohio cultivators [oh-energychoice-glossary].
State rate comparison tool
Use the state commercial rate comparison tool alongside this page for multi-state MSOs [eia-epm-5-6-a]. Ohio industrial-commercial spread of about 3.88 cents/kWh reflects demand-heavy commercial classes [eia-epm-5-6-a].
Normalizing cents per kWh across classes
Divide total bill by total kWh for all-in benchmark [eia-epm-5-6-a]. Separate delivery demand dollars by billing kW and compare to tariff [fe-toledo-edison-tariff]. GS-1 dispensaries lack demand line; Level I grows on GS-3 show large demand share [aep-ohio-rates].
Ohio commercial 13.77 vs industrial 9.89 cents/kWh June 2026 [eia-epm-5-6-a]. Michigan 16.63 cents/kWh contrasts for MSOs [eia-epm-5-6-a]. Immediate Ohio choice vs Michigan queue changes procurement [oh-energychoice-glossary]. Use demand charge estimator tool for facility-specific peaks [/tools/demand-charge-estimator].
Use cap data page for official U-15801 procedures [mpsc-cap-data].
Compliance and documentation practices
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports, queue confirmation letters where applicable, CRES contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every June benchmark reset [oh-energychoice-glossary]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies to the utility account manager before paying disputed invoices [ecm-fe-ohio-sso-2026]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites so board reporting reflects operational reality rather than blended averages [aep-ohio-rates]. Legal should keep meter assignment language in leases aligned with the license holder entity on the utility account [fe-toledo-edison-tariff].
Use cap data page for official U-15801 procedures [mpsc-cap-data].
Compliance and documentation practices
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports, queue confirmation letters where applicable, CRES contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every June benchmark reset [oh-energychoice-glossary]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies to the utility account manager before paying disputed invoices [ecm-fe-ohio-sso-2026]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [aep-ohio-rates]. Legal should keep meter assignment language in leases aligned with the license holder entity on the utility account [fe-toledo-edison-tariff].
Related reading
- Ohio hub: market overview
- How to switch suppliers: enrollment procedure
- State commercial rate comparison tool
Frequently asked questions
Is 13.77 cents per kWh what my Ohio facility will pay?
No. It is the EIA statewide average revenue per kWh across all commercial customers in June 2026, delivery and supply combined. A dispensary on GS-1 with a competitive CRES contract can be under it. A Level I cultivator with high summer demand billing can be over it. Use it to sanity-check a bill, not to budget one.
Why is the Ohio industrial average 3.88 cents lower than commercial?
Industrial customers tend to be larger, take service at higher voltage, and run flatter loads. Fixed per-kW delivery charges spread over more kWh. A cultivator with flat lighting hours can price closer to the industrial line on supply even if delivery class keeps it on general service.
What is the Price to Compare?
It is the utility Standard Service Offer rate from PUCO-supervised wholesale auctions, reset every June 1. The Apples to Apples chart publishes benchmarks for comparison. Commercial offers above small-business size are quoted individually.
When does the SSO benchmark change?
Every June 1 from PUCO-supervised auctions. FirstEnergy's small commercial SSO energy-plus-capacity rate rose about 6 percent on June 1, 2026. A CRES contract signed before the reset may beat or miss the new SSO depending on PJM capacity outcomes.
How do demand charges differ among Ohio IOUs?
AEP Ohio uses GS-1 through GS-4 by size and voltage. FirstEnergy GS bills capacity per kW of billing demand with Contract Demand floors for new customers. Duke uses Rate DS and DP for demand-metered service. AES Ohio uses Secondary and Primary voltage classes with per-kW distribution. Confirm current per-kW figures on each tariff sheet.
Does PJM capacity affect Ohio bills?
Yes. All four IOUs are in PJM. Capacity and NITS pass through in both SSO auction prices and CRES products. The 2025/26 and 2026/27 delivery years saw sharply higher capacity costs, which raised SSO benchmarks and pass-through exposure on supplier contracts.
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.
- 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.
- Duke Energy Ohio for Cannabis Facilities: Rate DS Demand, SSO, and Cincinnati-Area Delivery
How Duke Energy Ohio bills cannabis accounts in southwestern Ohio: Rate DM and DS, per-kW distribution demand, PJM, Standard Service Offer, and CRES choice.
- AES Ohio for Cannabis Facilities: Voltage Classes, Demand Billing, and Dayton-Area SSO
AES Ohio cannabis facility guide: D19-D22 voltage classes, per-kW demand billing, 2025 rate settlement, and CRES supply choice in Dayton territory.
- 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.
- Demand Charges Explained for Cannabis Cultivators
What a demand charge is, how utilities measure peak kW in 15- or 30-minute windows, why grow rooms get hit hard, how ratchets work, and a worked example.
- Utility Rate Classes Explained: Small Commercial, Large Commercial, C&I
How utilities assign small, large, and C&I rate classes by peak kW, why the wrong class costs money, real tariff examples, and how to request a class review.
- State Commercial Rate Comparison
Compare average commercial electricity prices across cannabis states, with cannabis market status and supplier choice rules pulled from verified state data.
- Demand Charge Estimator
Estimate monthly and annual demand charges from your peak kW, average kW, and tariff rate. Model load factor and peak shaving savings.
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-energychoice-glossary]Energy Choice Ohio: Glossary of Terms and Apples to Apples comparison charts — Public Utilities Commission of Ohio. 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.
- [aes-ohio-rates]Rates and tariffs — AES 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.
- [occ-hb15]Governor DeWine Signs House Bill 15, Marking a Win for Ohio Consumers — Office of the Ohio Consumers' Counsel. Accessed 2026-09-11.
- [mpsc-choice-2025-report]State's electric choice program remains fully subscribed in 2025 (annual Status of Electric Competition report), February 2, 2026 — Michigan Public Service Commission. Accessed 2026-09-11.
- [mpsc-cap-data]Electric Choice 10% Cap Data (PA 286 of 2008, Case No. U-15801) — Michigan Public Service Commission. Accessed 2026-09-11.