Source: Grid Shopper — https://gridshopper.com/blog/nopec-rate-increase


import ExplainerBox from '../../components/ExplainerBox.astro';
import MultiUtilityEmbed from '../../components/embeds/MultiUtilityEmbed.astro';

*Standard Program customers will pay 8.929¢/kWh starting June 1st, up from the current 6.399¢/kWh*

<ExplainerBox title="What You Need to Know">
  - **What happened:** NOPEC published updated rates on their website on April 4th
  - **What's next:** The 40% rate increase for the standard program will go into effect on June 1st
  - **Bottom line:** Customers using 800 kWh per month will see a $20 increase in the supply portion of their bill
  - **New rate:** 8.929¢/kWh (up from current 6.399¢/kWh)
  - **Why:** PJM capacity auction results are driving up costs across the region
</ExplainerBox>

## What is the NOPEC Standard Program?

NOPEC is an opt-out aggregation program for electricity and natural gas customers serving about 500,000 customers in 240 Ohio communities. If you are an electricity or natural gas customer in one of these communities, you will be automatically enrolled in the NOPEC standard program unless you opt out or choose a different energy supplier. You can read more about the NOPEC program on their [website](https://www.nopec.org/residents/pricingrates/electric-pricing).

## Why is the NOPEC rate increasing?

NOPEC serves customers across three different electric utility territories in Ohio: AEP, The Illuminating Company (Cleveland), and Ohio Edison. These three utilities are part of the PJM Interconnection, which is a regional grid operator that oversees the electricity market in the mid-Atlantic region, covering parts of 13 states and the District of Columbia.

On June 1st, 2025, new capacity costs will go into effect across PJM. These capacity costs are payments owed to power plants by electricity users, compensating the generators for their ability to provide electricity supply during periods of peak demand across the grid.

You can read more about the PJM capacity market and the impact of the auction results on our [PJM capacity auction results](/blog/pjm-capacity-auction) page. The short summary is that power demand is increasing across the region, largely driven by the requirements of large data centers powering the AI industry. This sharp increase in power demand is happening at the same time that many of our older power plants are reaching the end of their useful life, and the market is responding to this new demand with efforts to build new power plants, but the time it takes to get them online has not kept up with the demand.

## What are Your Options?

Electricity customers being served by NOPEC have three options when it comes to their supply rate:

- **No Action:** If you do nothing, you will continue to be served by NOPEC at their current rate. Most customers are on the standard program -- this rate will be increasing by 40% starting June 1st.
- **Alternative Supplier:** Customers can choose an alternative supplier. Suppliers post their offers on the Ohio Public Utilities Commission's [Apples to Apples](https://www.energychoice.ohio.gov/ApplesToApplesCategory.aspx?Category=Electric) page. Our website tracks these supplier offers, and you can find more information on our [Ohio utilities page](/oh).
- **Return to Utility Service:** Customers can return to their utility's standard offer service, though these rates will also be increasing in June.

### Alternative Supplier Offers

Alternative supplier offers in the Ohio utilities served by NOPEC have steadily increased over the past several months. While there are other factors at play, the increasing capacity costs are a major driver of the rate increases.

The chart below shows the average 12-month offer from electricity suppliers for each of the three utilities. Notice how the average rate is trending upward: this is happening because more recent 12-month offers include more months impacted by the higher capacity prices.

<MultiUtilityEmbed utilities={['oh/aep', 'oh/ceic', 'oh/ohioedison']} charts={['trend']} />

We can see this trend playing out across all of the utilities that we track in the PJM region. Check it out on our [trends page](/trends).

### Utility Standard Offer Rates

Utilities in Ohio buy electricity supply for their standard service customers - those who don't participate in programs like NOPEC and haven't chosen an alternative supplier - through periodic procurement auctions. Prices determined by these auctions are already signaling sharp increases starting June 2025 due to rising capacity costs.

<MultiUtilityEmbed utilities={['oh/aep', 'oh/ceic', 'oh/ohioedison']} charts={['auction']} />

However, there's additional complexity: Due to delays in PJM's capacity auctions, the capacity price for the June 2026–May 2027 period hasn't yet been set. Utilities have temporarily relied on interim "capacity proxy prices" in their procurement auctions. The method for setting these proxy prices varies; some utilities are using recent auction results, while others average past results.

Another important detail is that each utility's procurement auction prices typically reflect only part of your final electricity rate. Additional components—such as administrative fees, renewable energy credits, transmission charges, and other regulatory obligations—are later added to these procurement costs, affecting the final rate you see on your bill.

Our website tracks these procurement auction results as an indicator of future utility rates, but consumers should keep in mind that actual utility rates will likely differ, and could be higher once all cost components are included.

**May 2025 update:** Utility default service rates for June have been published on the Ohio Public Utilities Commission's [website](https://www.energychoice.ohio.gov/ApplesToApplesCategory.aspx?Category=Electric).

| Utility | Current Rate | June 1 Rate | % Increase |
| --- | ---: | ---: | ---: |
| AEP Ohio | 7.32¢/kWh | 9.97¢/kWh | 36% |
| The Illuminating Company | 7.19¢/kWh | 9.11¢/kWh | 27% |
| Ohio Edison | 7.43¢/kWh | 9.35¢/kWh | 26% |

## What This Means for You

### For NOPEC Standard Program Customers

- **Rate Increase:** Expect your electricity supply rate to increase 40% beginning June 1st, 2025
- **Bill Impact:** For the average household using 800 kWh monthly, this translates to approximately $20 more per month in supply charges
- **Future Outlook:** The higher rates are likely to stick around for at least a few years

### For Electricity Shoppers

- Depending on future market conditions, customers might save money by shopping around for alternative suppliers
- You can track supplier offers on our [Ohio utilities page](/oh), where we store and present data from the official [Ohio Public Utilities Commission electricity rate board](https://www.energychoice.ohio.gov/ApplesToApplesCategory.aspx?Category=Electric).

The chart below is an example of the type of data you can find on our [Ohio utilities page](/oh). It shows current supplier offers for residential customers, arranged by contract length and price.

<MultiUtilityEmbed utilities={['oh/aep', 'oh/ceic', 'oh/ohioedison']} charts={['offers']} />

## Key Takeaways

Here's what you should know about the upcoming NOPEC rate increase:

- The NOPEC standard program rate is set to increase by 40% in June
- The large increase in PJM capacity costs is mostly to blame for the higher rates
- Customers can do nothing and stay with NOPEC automatically, shop around for alternative suppliers, or return to the utility's standard offer service

*Note: The estimated bill impacts are general approximations. Your actual bill impact may vary based on your specific rate plan and electricity usage patterns.*