As Ohio families begin to put winter in the rearview mirror and look ahead to the warmer months, many are already thinking about what rising temperatures mean for their electric bills. Between persistent inflation, growing electricity demand, and continued strain on the regional power grid, energy affordability remains a top concern for households across the state.
One promising solution is something called demand response. While the term may sound technical, demand response is actually a simple idea that can help lower costs for consumers while improving grid reliability.
Demand response programs allow customers to voluntarily reduce or shift their electricity use during periods when the grid is under the most stress. This is typically during the hottest summer afternoons or the coldest winter evenings. When enough customers participate, it reduces the need for expensive “peaking” power plants that only run a few hours per year but drive up overall electricity costs.
In other words, when consumers voluntarily use a little less electricity during the most expensive times, everyone’s bills can benefit.
That’s why CUB Ohio supports the policy goals behind Ohio House Bill 427. The legislation is designed to strengthen and expand demand response opportunities in Ohio, ensuring that all consumers, not just utilities and large corporations, have the chance to benefit from programs that reward smarter energy use.
Demand response is already a proven tool in many parts of the country. In regions where these programs are robust, they have helped lower electricity prices, improve reliability during extreme weather, and give consumers more control over their energy bills.
The good news is that some Ohio utilities already offer programs that allow customers to participate in demand response today. For example, customers of AEP Ohio can enroll in Power Rewards, a voluntary program that rewards households for reducing electricity use during peak demand periods. Here’s how it works:
Customers enroll a smart thermostat or other eligible device.
During peak demand events, the thermostat automatically adjusts for a few minutes to reduce electricity use. This can always be overridden by the homeowner.
Participants receive bill credits or other incentives for helping lower demand.
This may sound small, but when thousands of households participate, the impact on the grid can be significant. That’s why demand response represents a commonsense, market-friendly solution to rising energy costs.
Instead of building expensive new power plants that customers ultimately have to pay for, demand response allows consumers to play a role in solving our energy challenges while being compensated for doing so.
As electricity demand, driven by data centers, advanced manufacturing, and electrification, continues to grow, solutions that empower consumers will become even more important. They also help:
Reduce strain on the power grid during extreme weather
Lower the risk of power outages
Reduce the need for costly emergency power purchases
Give consumers more control over their electricity bills
Ohio consumers interested in saving money and supporting grid reliability should consider exploring demand response programs offered by their utility, if applicable. You should also let your elected state policymakers know that policies like House Bill 427 will help ensure that these opportunities expand so that more Ohio households can benefit. You can find your State Representative here.
Demand response is a practical step toward an energy system that is more affordable, more reliable, and more responsive to the needs of Ohio consumers. Existing programs like Power Rewards show that when consumers are given the opportunity to participate, they can help strengthen the grid while lowering costs for everyone.
When consumers win, Ohio wins.
