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FirstEnergy has announced plans to seek three consecutive years of electric rate increases starting in 2027, affecting customers of Ohio Edison, The Cleveland Electric Illuminating Company, and Toledo Edison across Ohio. The utility cites grid improvements and enhanced tree trimming operations as primary drivers for the proposed rate hikes.

Last updated: 2026-04-29

TL;DR: FirstEnergy's three Ohio utilities plan rate increases from 2027-2029 to fund grid improvements and tree trimming. While these affect delivery charges you can't control, the supply portion of your bill remains competitive in Ohio's deregulated market, where choosing the right supplier can offset some of the delivery cost increases.

What FirstEnergy's Rate Increases Mean for Your Bill

FirstEnergy's proposed rate increases will specifically impact the delivery portion of your electricity bill - the charges for maintaining power lines, substations, and grid infrastructure. These delivery charges are regulated by the Public Utilities Commission of Ohio (PUCO) and apply to all customers regardless of which supplier they choose for electricity.

The three-year timeline starting in 2027 suggests FirstEnergy expects significant infrastructure investment costs. According to recent U.S. Energy Information Administration data, Ohio utilities have been increasing grid hardening efforts following severe weather events that caused widespread outages.

However, Ohio customers have an advantage that many other states don't: energy choice. While you can't control delivery charges, you can still choose your electricity supplier for the supply portion of your bill. This competitive market gives you options to potentially offset some delivery cost increases through better supply rates.

Which FirstEnergy Customers Are Affected

The rate increases will impact customers across three FirstEnergy subsidiaries serving different regions of Ohio:

Ohio Edison serves customers in northeastern and north-central Ohio, including areas around Akron and Canton. Current customers pay a default supply rate of $0.097 per kWh as of April 2026.

The Cleveland Electric Illuminating Company provides service to the greater Cleveland metropolitan area and surrounding communities. These customers currently face a default rate of $0.0988 per kWh.

Toledo Edison serves northwestern Ohio, including Toledo and surrounding counties, with current default rates at $0.0999 per kWh.

Combined, these three utilities serve approximately 1.5 million Ohio customers. The proposed increases would affect both residential and commercial accounts, though the specific percentage increases haven't been disclosed pending PUCO review.

Weather-related factors have been a significant driver of infrastructure costs across Ohio. The state has experienced increased frequency of severe storms, ice events, and high winds that damage power lines and require extensive tree trimming to prevent outages.

Understanding Your Ohio Electricity Bill Structure

Ohio's deregulated electricity market means your monthly bill contains two main components that respond differently to utility rate increases.

Delivery charges cover the cost of maintaining power lines, transformers, and grid infrastructure. These charges are set by PUCO and apply to all customers in each utility territory. FirstEnergy's proposed increases would affect this portion of your bill, and you cannot shop around for alternative delivery service.

Supply charges cover the actual electricity commodity - the power that flows through those lines. Ohio customers can choose their electricity supplier for this portion, creating competition that often results in rates below the utility default service.

The supply portion typically represents 40-60% of your total bill, depending on your usage and rate structure. This means even with delivery charge increases, competitive supply rates can still provide meaningful savings on your overall electricity costs.

When FirstEnergy's delivery rates increase, the value of finding a competitive supply rate becomes even more important for managing your total electricity costs.

Timeline and Regulatory Process

FirstEnergy must receive approval from PUCO before implementing any rate increases. The regulatory process typically takes 6-12 months and includes public hearings where customers can voice concerns about proposed changes.

The three-year timeline starting in 2027 suggests FirstEnergy plans to spread infrastructure costs across multiple years rather than implementing one large increase. This approach often makes rate changes more palatable to regulators and customers.

PUCO will evaluate whether the proposed investments are necessary and whether the costs are reasonable. The commission has authority to approve, modify, or reject FirstEnergy's rate proposals.

Consumer advocates and industrial customers often participate in these proceedings to challenge unnecessary costs or propose alternative approaches to grid improvements.

How Ohio's Energy Choice Protects You

Ohio's competitive electricity market provides important protection against rising utility costs. While you must accept whatever delivery charges PUCO approves, you maintain control over your supply costs through supplier choice.

Many competitive suppliers offer fixed-rate plans that lock in your supply costs for 12-24 months. These contracts protect you from both market volatility and utility rate increases on the supply side of your bill.

Gatby helps Ohio customers navigate these choices automatically through its Autopilot platform, which continuously monitors rates and switches you to better plans when available. Comparing plans on Gatby is always free, and the platform manages contract renewals to prevent expensive holdover rates.

Current competitive rates in Ohio often run 10-15% below utility default service, depending on market conditions and your specific usage patterns. With delivery costs increasing, maximizing savings on the supply portion becomes more valuable.

Grid Improvement Benefits vs. Costs

FirstEnergy's planned investments focus on two main areas: general grid improvements and enhanced tree trimming operations. These investments aim to reduce outage frequency and duration, particularly during severe weather events.

Tree trimming has become increasingly important as Ohio experiences more frequent storms. Vegetation contact remains one of the leading causes of power outages, and proactive trimming can prevent many weather-related service interruptions.

Grid hardening investments typically include upgrading transformers, replacing aging power lines, and installing smart grid technology that can automatically reroute power around damaged equipment.

While these improvements benefit customers through better reliability, they come at a cost that gets passed through in delivery charges. The challenge for regulators is balancing reliability improvements against affordability concerns.

What You Can Do Now

Ohio customers have several options for managing electricity costs as FirstEnergy's rate increases approach:

Review your current supplier arrangement. If you're still on utility default service, you're likely paying more than necessary for electricity supply. Competitive rates typically offer savings even before considering upcoming delivery charge increases.

Consider fixed-rate plans. Locking in competitive supply rates now protects you from both market volatility and gives you predictable costs as delivery charges increase over the next three years.

Monitor your usage patterns. Higher delivery charges make energy efficiency more valuable. Small reductions in usage provide greater bill savings when both supply and delivery rates are higher.

Stay informed about the PUCO process. Public hearings provide opportunities for customer input on FirstEnergy's proposals. PUCO typically posts hearing schedules and accepts written comments from customers.

You can compare current electricity plans for your specific FirstEnergy territory on Gatby's Northeast platform, which shows rates from multiple suppliers and calculates total costs based on your actual usage.

Broader Market Context

FirstEnergy's rate increase plans reflect broader trends across Ohio and neighboring states. Utilities nationwide are investing heavily in grid modernization and climate resilience following increased severe weather events.

According to the U.S. Energy Information Administration, utility infrastructure investments have accelerated significantly since 2020, driven by aging equipment, extreme weather, and new technology deployments.

Ohio's deregulated market structure means customers have more options for managing these cost increases compared to regulated states where customers must accept both delivery and supply rate changes from their utility.

The timing of FirstEnergy's proposed increases coincides with broader energy market volatility. Having competitive supply options becomes more valuable when utility costs are rising across multiple components.

Regional Comparison

FirstEnergy customers can compare their situation to other Ohio utilities facing similar infrastructure challenges:

AEP Ohio customers currently pay $0.0994 per kWh for default supply service, with their own grid improvement programs affecting delivery charges.

Duke Energy Ohio serves southern Ohio with current default rates at $0.1008 per kWh, the highest among major Ohio utilities.

All Ohio utilities face similar pressures for grid improvements, but the competitive supply market gives customers consistent options for managing the controllable portion of their electricity costs.

Gatby has 4.8/5 stars from 500+ independent reviews from customers across Ohio who use the platform to automatically manage their electricity plans as market conditions change.

Written by Hash Manesia, Energy Market Analyst at Gatby. Hash Manesia covers deregulated electricity markets across Texas and the Northeast, helping consumers navigate plan selection, rate comparison, and energy policy changes.

Reviewed by the Gatby Editorial Team on 2026-04-29

Frequently Asked Questions

When will FirstEnergy's rate increases take effect in Ohio?

FirstEnergy plans to implement rate increases starting in 2027, but the exact timing depends on PUCO approval. The utility has proposed a three-year timeline from 2027-2029, which means increases would likely be phased in annually rather than all at once. PUCO typically takes 6-12 months to review rate cases, so FirstEnergy would need to file their formal request in 2026 to meet a 2027 implementation date. Customers will receive advance notice before any approved rate changes take effect.

Will these rate increases affect my electricity supplier choice?

No, FirstEnergy's rate increases only affect delivery charges, not your ability to choose an electricity supplier. Ohio's deregulated market means you can still shop for competitive supply rates regardless of delivery charge changes. In fact, rising delivery costs make competitive supply rates more valuable for managing your total electricity bill. You can switch suppliers at any time, and many offer fixed-rate plans that protect you from market volatility on the supply portion of your bill.

How much will FirstEnergy customers' bills increase?

FirstEnergy hasn't disclosed specific percentage increases yet, as they must first file formal rate cases with PUCO. The actual impact on customer bills will depend on PUCO's review and approval process, which can modify utility proposals. Delivery charges typically represent 40-60% of your total bill, so even significant delivery increases might translate to smaller overall bill impacts. The three-year timeline suggests FirstEnergy plans to spread costs across multiple smaller increases rather than one large jump.

Can I protect myself from these rate increases?

While you can't avoid approved delivery charge increases, you can control your supply costs through Ohio's competitive market. Choosing a competitive supplier often saves 10-15% compared to utility default service, which can offset some delivery cost increases. Fixed-rate supply plans lock in your electricity costs for 12-24 months, providing budget certainty as delivery charges change. Energy efficiency improvements also become more valuable when both delivery and supply rates are higher.

What grid improvements will FirstEnergy make with the additional revenue?

FirstEnergy plans to focus on enhanced tree trimming operations and general grid improvements to reduce weather-related outages. Tree trimming prevents vegetation from contacting power lines during storms, which is a leading cause of outages in Ohio. Grid hardening investments typically include upgrading transformers, replacing aging equipment, and installing smart grid technology that can automatically reroute power around damaged areas. These improvements aim to reduce both outage frequency and restoration time for customers.

How does PUCO review utility rate increase requests?

PUCO conducts a comprehensive review process that includes examining the necessity and reasonableness of proposed investments. The commission holds public hearings where customers, consumer advocates, and industrial users can voice concerns or support for rate proposals. PUCO staff and independent experts review utility cost projections, alternative approaches, and the impact on different customer classes. The commission has authority to approve, modify, or reject rate requests, and often requires utilities to justify every component of their proposals before approval.