How FirstEnergy Ohio Rate Changes Will Impact 2026 Electric Bills

In 2025, over 2 million Ohioans saw FirstEnergy rates rise, and additional rate changes are on the horizon in 2026. Thanks to a recent settlement between FirstEnergy and PUCO, these increases will be smaller than originally planned, spreading infrastructure costs over a longer period and including restitution for past overpayments. Here’s what the FirstEnergy Ohio electricity rate increases will mean for your residential energy bills.

What’s Behind the 2026 FirstEnergy Ohio Rate Changes?

In 2025, millions of Ohioans experienced a 2¢/kWh FirstEnergy rate increase caused by infrastructure upgrades, storm recovery costs, and other operational expenses. This rate change affected customers across FirstEnergy’s Illuminating Company, Ohio Edison, and Toledo Edison service areas.

Looking ahead to 2026, FirstEnergy initially requested another round of large rate increases in October 2025. Fortunately, a new settlement approved by the Public Utilities Commission of Ohio (PUCO) in January 2026 will ease the impact on households across the state. The settlement agreement spreads utility costs over a longer period, easing the burden on FirstEnergy customers and making Ohio energy costs more manageable.

What Did PUCO Approve in the Recent FirstEnergy Settlement?  

The settlement will change how FirstEnergy spreads $245 million in storm repair costs. Instead of collecting $49 million per year over the course of five years, the new plan will spread costs over 25 years, dropping annual customer costs to about $9.8 million. While rates will still rise for most FirstEnergy customers in 2026, the increase won’t be as extreme as originally predicted.  

The settlement also includes $275 million in restitution, aid, and program funding. FirstEnergy’s residential customers will receive $5 million in restitution for overpayments, which will be delivered as bill credits over three months. The remaining funds will help support residential affordability programs, including low-income assistance, weatherization, and energy efficiency programs.

‍Rate Alert: Updated FirstEnergy Ohio rates will take effect on March 1, 2026.

How Much Will Your Ohio Electric Bill Change in 2026?

The finalized FirstEnergy rates haven’t been shared publicly yet, so there isn’t one statewide percentage to reference. How much your Ohio electric bill changes will ultimately depend on your specific utility service area and household usage.  

While delivery rates are expected to increase in 2026, residential customers will also receive bill credits over the next three months. The average Ohio household that uses 1000 kWh per month is expected to receive roughly $65 in bill credits during this period to offset its impact.

Which FirstEnergy Customers Will Be Affected the Most?

Fortunately, FirstEnergy has shared estimates to help Ohio households understand what to expect once the rate changes and bill credits take effect in March. Below are projected bill impacts by utility, including how credits may temporarily reduce costs and what delivery rate increases could look like after they expire.

The Illuminating Company

With temporary bill credits, residential electric bills are projected to decrease by $1.02 compared to January 2026.

After bill credits expire, residential electric bills are expected to increase by $13.69 compared to January 2026.

Ohio Edison

With temporary bill credits, residential electric bills are projected to decrease by $13.27 compared to January 2026.

After bill credits expire, residential electric bills are expected to increase by $2.42 compared to January 2026.

Toledo Edison

With temporary bill credits, residential electric bills are projected to decrease by $17.81 compared to January 2026.

After bill credits expire, residential electric bills are expected to decrease by $3.08 compared to January 2026.

Which Part of Your Electric Bill Will Be Affected?

The recent FirstEnergy rate increases will impact the delivery portion of your monthly bill. Delivery charges are fees determined by your utility company to help cover the cost of maintaining local energy infrastructure, like power lines, substations, and meters.

Your supply rate, on the other hand, is what you pay per kilowatt-hour (kWh) for the electricity you use and can vary depending on your supplier or plan. While these changes will affect utility-related fees, Ohio households can still compare competitive supply rates to help lower their monthly bills.

How Can You Reduce the Impact of the FirstEnergy Rate Increase?

While you can’t change your utility delivery and service fees, you can still take control of your home energy bills. A few simple changes and affordable upgrades can help your household reduce monthly power usage and ultimately lower your bills.

Switching Electricity Plans

In Ohio’s deregulated market, households and businesses have the power to compare suppliers, rates, and plans to find the best deal. With Price to Compare’s online marketplace, you can find a more affordable plan and finalize enrollment with just a few clicks!

Installing a Smart Thermostat

Investing in a smart HVAC system can help reduce household heating and cooling costs by roughly 8%, especially during Ohio’s winter and summer months. This technology automatically adjusts temperatures based on your daily schedule for simple, stress-free energy savings.

Consider Efficiency Upgrades

Affordable upgrades like investing in LED lightbulbs or adding weather stripping along windows and doors can have a major impact. These upgrades help reduce energy waste around your home and can typically lower your monthly bills by 5%-15%.

Practice Conservation Habits

Even small habit changes can lead to large energy savings. Some effective energy-saving habits can include washing laundry in cold water, turning off lights or electronics when you leave a room, and lowering usage during your utility company’s peak demand periods.

How Can You Find Better Ohio Electricity Rates?

At Price to Compare, we believe finding a better home energy plan should be fast and easy. Our online energy marketplace includes side-by-side energy plan comparisons from the best electricity providers in Ohio. This format makes it easy to find the right supplier and plan for your household. In less than five minutes, you can lock in a fixed rate plan and enjoy lower, more predictable energy bills.

Comparing Fixed vs. Variable Rates in a Rising Market  

With rates on the rise, understanding the differences between fixed and variable plans is more important than ever. Whether you’re searching for fixed-rate stability or variable-rate flexibility, you’ll find the right home energy plan with Price to Compare.

What’s Next for Ohio Electricity Rates in 2026 & Beyond?

FirstEnergy’s updated delivery rates will take effect on March 1, 2026, with residential bill credits rolling out over the next three months. After that, Ohio electric rates will likely continue to change based on market conditions, seasonal weather patterns, and future PUCO decisions. The good news? You can stay in control of your bills by keeping an eye on your usage and locking in a low, fixed electric rate to keep home energy costs manageable.

Frequently Asked Questions About FirstEnergy Ohio’s Rate Increase

When will the new FirstEnergy rates show up on my electric bill?

The new FirstEnergy delivery rates will go into effect on March 1, 2026. Residential customers will receive bill credits over the following three months, which can help offset some of these increases. Once available, you can review your March billing statement to see the adjustments in action.

Will Ohio electric rates go down after 2026?

Between rising utility costs and PJM capacity rate increases, it’s likely that Ohio electricity rates will remain elevated through the next several years. That said, comparing plans and locking in a fixed-rate electricity plan now can help you avoid sudden rate changes and keep your monthly bills more predictable.

Is switching electric suppliers in Ohio worth it right now?

Absolutely! In Ohio’s deregulated energy market, you can always find a great deal on energy rates to find a plan that suits your household’s needs. Exploring your energy options today can help you lock in lower rates, protect you from future price increases, and make monthly costs more predictable.

How much can you save by shopping for electricity in Ohio?

Your specific savings will vary depending on your usage, plan type, and the supplier you choose. Even small differences in rates can add up over time, so exploring your options with a quick comparison can help you maximize your potential savings.

How long does it take to switch electricity providers in Ohio?

With Price to Compare, you can switch Ohio electricity providers entirely online in less than five minutes! Simply enter your zip code and confirm your utility company to gain access to our online energy marketplace. Our comparisons make it easy to choose an affordable plan and finalize enrollment with just a few clicks.