2024 Update on Electricity Customer Choice in Ohio: Deregulated Markets Continue to Save Ohio Ratepayers Nearly $3 Billion per Year

This study provides an update to the research team’s 2016 and 2019 reports on the performance of deregulated electricity markets in Ohio since restructuring first took effect in 2009. This latest study covers the important pandemic and post-pandemic era, when electricity retail markets experienced considerable volatility. Key findings: Despite recent energy market upheaval, deregulated markets continue to save Ohio ratepayers nearly $3 billion per year. From 2019-2023, Ohio consumers saved 13.5$ billion due to deregulation, with an additional $2.7 billion in savings expected for 2024. Total savings of $37.5 billion since 2011 translate to $261 per household each year and $3,800 to $5,500 per building each year for small businesses such as restaurants and retail stores. Medium-sized manufacturers with annual electricity consumption of 7.5 million kilowatt-hours have experienced savings of $151,000 per year since 2011, while large manufacturers consuming 100 million kilowatt-hours annually have seen savings of around $2 million per year over the same period. The lower average price of electricity in deregulated Midwestern states (Ohio, Pennsylvania, and Illinois) compared to similarly situated Midwestern states with regulated markets (Indiana, Michigan, Wisconsin) persisted throughout the COVID and post-COVID years. Returning to a vertically integrated market structure for electricity would likely erode the cost savings realized by ratepayers in Ohio from competitively supplied generation.