My client in Akron was on a competitive supply contract with a third-party supplier on Ohio Edison. The contract expired and the client got moved to Ohio Edison's Standard Service Offer (SSO). The SSO rate looks higher than what they were paying on the competitive contract. Is there anything I can do, or is this just the market rate?
Ohio switched to SSO — what happened to my client's rate?
The SSO rate is the utility's default rate — it's set through a competitive auction process approved by PUCO. It's not negotiable. But what you CAN do is shop for a new competitive supply contract. The SSO rate is usually higher than what's available on the competitive market, especially for large commercial accounts. Your audit finding isn't a billing error — it's a recommendation to return to competitive supply. Compare the current SSO rate to market offers and quantify the savings.
Rob is right. But also check the delivery side while you're at it. When accounts transition from competitive supply back to SSO, the billing system sometimes recodes the customer class on the delivery side. I found an account in Youngstown where the transition from competitive back to SSO also changed the delivery rate from GP (General Power) to GS (General Service) — a more expensive delivery rate. That wasn't related to the supply switch at all, it was just a billing system glitch during the transition.
Good advice from both. The supply side in Ohio is a shopping decision, not an audit finding per se. But the delivery side transition errors that Jim W. described are genuine billing errors worth checking. Any time a customer changes supply status in a deregulated state — switching REPs, going to default service, or returning to competitive supply — check the delivery rate classification. The supply transition shouldn't change anything on the delivery side, but billing system glitches during transitions are common.
Checked the delivery side and sure enough — the delivery rate changed during the SSO transition. Shouldn't have. Filing to get it corrected. Also shopping competitive supply rates for the client. Thanks everyone.