Why Electricity Bills Are Rising Across Ohio This Summer

By Andi Anderson

Many Ohio households saw higher electricity bills this summer, largely due to shifts in supply and demand. Demand for power is rising while available generation has declined, leading to higher costs for generation, transmission, and distribution.

Customers of large utilities faced rate increases. However, members of Ohio’s electric cooperatives did not experience these same spikes. Because cooperatives own their power generation facilities and supply electricity at cost, they can keep prices stable for their members.

One key reason demand is increasing is the growing use of electricity in daily life. Electric vehicles, technology, and the shift to more electrified systems mean households and businesses use more power.

At the same time, Ohio’s generation capacity has declined sharply. In 2009, the state operated 21 coal plants; today, only three remain. Others closed due to high compliance costs under environmental regulations.

Renewable energy sources like solar and wind have been added to the grid, but they cannot fully replace lost capacity and are not available year-round. Meanwhile, large data centers have emerged as major energy consumers.

These facilities store data, photos, and media for millions of people and require significant amounts of power. A single data center may use up to 1,500 megawatts of electricity—enough to supply 1.5 million homes.

Even simple online tasks now use more energy; for example, a ChatGPT search requires about 10 times more power than a standard Google search.

To close the power gap, Ohio must invest in new generation and transmission infrastructure. State leaders have introduced HB15 to attract investment in power generation, though projects take time and money to complete. Some data centers may also build their own generation to meet demand.

Electric cooperatives, through Ohio’s Electric Cooperatives (OEC), continue to provide stable, at-cost power. OEC represents 24 member-owned cooperatives serving nearly 1 million members across 77 counties and operates the Cardinal Plant in Brilliant, Ohio.

Cooperative leaders stress that any new costs to serve large users like data centers should remain with those users, not be shifted to members.

Photo Credit: istock-shansekala