Why Is My Electric Bill So High in Ohio This Summer? The Real Reasons Behind 2025’s Electric Rate Spikes—and What to Do

Ohioans Are Asking: Why Are Electricity Bills Skyrocketing in Summer 2025? 

If you opened your electric bill this summer and were shocked by a significant jump in your total charges, you’re not alone. Many Ohio residents—including AEP Ohio customers—are seeing electric rates rise by 10% to 30%, depending on how their electricity is supplied. 

So, what’s behind the increase, and what can you do to take control of your energy costs? 

Let’s break it down.

1.The Main Culprit: Skyrocketing Generation Supply Costs

If you’re on AEP Ohio’s Standard Service Offer (SSO)—which means you haven’t chosen your own energy supplier—your generation supply charge increased by about $27/month starting in June 2025 (based on 1,000 kWh usage). That’s nearly a 28% jump. 

💡 These are “pass-through” charges from the wholesale electricity market, where energy suppliers bid to serve your home. 

 2. Why Generation Prices Are Up: PJM Capacity Auction Shock

Ohio’s power grid is managed by PJM, a regional transmission organization that spans 13 states. Each year, PJM holds an auction where energy suppliers bid to reserve power capacity for future demand. 

In the 2024 auction for the 2025-2026 cycle, capacity prices surged by 833% compared to the previous year. That cost gets passed directly to you as part of your generation charges. 

📈 Why the Surge? 

• Increased demand from state population growth, heat waves, and the expansion of data centers. 
• Decreased supply as older coal and gas plants retire faster than new sources come online. 
• Regulatory lag in approving new energy projects. 

3. Not Everyone’s Paying More—Here’s Why

If you’ve: 

• Chosen a competitive energy supplier with a fixed-rate plan, or 
• Participate in a governmental aggregation program, your bill may not have spiked—or not as much. 

This is because these customers are not on AEP Ohio’s SSO and may be locked into more favorable rates secured before the capacity price hike. 

💡 Tip: Check out energychoice.ohio.gov to see if switching suppliers could save you money. 

4.Are There Any Decreases on Your Bill?

Yes—though they may not offset the increases. This summer we saw:  

• Transmission charges dropped by about $9/month 
• Distribution-related charges dropped by around $5/month 

But if you’re an SSO customer, you’re still looking at a net increase of about $13/month or more.

5. How to Take Back Control of Your Energy Costs

Electricity prices are volatile and largely out of your control—but your energy usage and sourcing aren’t. Here’s what you can do right now: 

✅ 1. Shop for a Fixed-Rate Electricity Supplier 

Visit the PUCO Apples to Apples comparison tool and explore fixed-rate plans to avoid future shocks. 

✅ 2. Go Solar and Generate Your Own Power 

Solar energy puts the power back in your hands—literally. With a rooftop or ground-mounted solar system: 

• You can lock in predictable electricity costs for decades. 
• Avoid supply auctions and pass-through market volatility. 
• Take advantage of federal solar tax credits and net metering incentives in Ohio. 

💬 Kokosing Solar specializes in helping homeowners and businesses in Ohio make the switch to clean, affordable solar power.

6. Looking Ahead: Will This Get Better in 2026?

There’s some hope. PJM has introduced market reforms that cap future capacity prices. That could mean smaller increases in 2026 and beyond. 

But with extreme weather and energy demand still rising, volatility will likely continue. 

☀️ Want Protection from the Next Rate Spike? 

Talk to Kokosing Solar about going solar and taking control of your energy future. With a system custom-designed for your home or business, you’ll never have to ask “Why is my electric bill so high in Ohio this summer?” again. 

📞 Contact Us Today or request your free solar consultation.