The Toledo Edison Company is a direct descendant of the Toledo Railways and Light Company which existed in Toledo, Ohio, from 1901 until 1921. Toledo Railways and Light, itself composed of several electric streetcar and utilities companies purchased and consolidated, provided electric and gas service to Toledo, Ohio, and the surrounding area. The company also continued to operate a streetcar service. Toledo Railways and Light was owned by Cities Service Company, a national conglomerate owned by Henry L. Doherty. Cities Service Company owned and operated several utilities and streetcar companies throughout the United States.

Toledo Edison came into existence in 1921 when the streetcar operations run by Toledo Railways and Light were sold to the Community Traction Company. Throughout the 1920s to the 1950s Toledo Edison continued to purchase smaller utility companies and increase electrical output. In the 1960s, the company began experimenting with the use of nuclear power. This ultimately resulted in the construction of the Davis-Besse Nuclear Power Plant in Oak Harbor, Ohio, in 1977.

In 1986 the company affiliated with The Illuminating Company to form a parent company known as Centerior Energy. In 1997, a merger between Centerior Energy and Ohio Edison created FirstEnergy Corp., which became the parent company of Toledo Edison and other utility companies.