Ohio Electric Bills Surge 22% as Utility CEO Salaries Reach Record Highs
Ohio utility executives earned $81 million combined while residents endured the nation’s second-highest electricity rate spike at 22%.
COLUMBUS, OHIO — Ohio residents faced the nation’s second-highest electricity rate increase in February, with bills jumping 22% compared to the previous year, while utility executives collected a combined $81 million in compensation, according to a new report.
The sharp price increase affected consumers statewide, trailing only Virginia for the steepest electricity cost surge, according to the U.S. Energy Information Agency. Summer cooling costs are expected to worsen the financial burden on Ohio households.
The National Energy Assistance Directors Association projects the average electricity cost to cool homes between June and September will reach $778. That represents a $61 increase, or 8.5% higher than last year, and nearly 37% above 2020 levels.
Data Centers Drive Demand While CEOs Cash In
Much of the electricity cost increase stems from spiking demand created by data centers across the state. Despite the burden on consumers, Ohio’s Republican leadership continues incentivizing data center construction through substantial tax breaks funded by ratepayers.
Data centers in Ohio have claimed $2.5 billion in state and local tax incentives since 2017, according to previous reporting. These breaks typically last 15 to 30 years, shifting the tax burden to residential customers already struggling with rising utility costs.
Meanwhile, utility executives received substantial compensation packages paid for through customer rates. The Energy & Policy Institute report found that CEOs of the four electric utilities serving Ohio made a combined $81 million last year.
AEP CEO Tops National Utility Pay Scale
Columbus-based American Electric Power led the compensation surge, with its CEO receiving the highest salary of any utility executive in the United States. The AEP chief executive got a $23 million raise in 2025, pushing total compensation to record levels.
The massive executive pay packages come as Ohio families face what experts describe as an affordability crisis. Ratepayers funded tens of millions in utility executive salaries last year, with individual CEO compensation equivalent to the combined income of hundreds of typical Ohio households.
Utility companies defend the high executive compensation levels, stating that salaries are determined by compensation committees operating in competitive markets for executive talent. However, consumer advocates argue that ratepayers should not bear the cost of excessive executive pay while struggling with rising electricity bills.
The timing of the salary increases coincides with Ohio households preparing for another expensive summer cooling season, as electricity demand continues climbing due to data center expansion and extreme weather patterns.
