Kentucky Public Service Commission Approves Settlement Agreement on Duke Energy Kentucky Electric Rate Increase
CINCINNATI – Duke Energy Kentucky announced today that the Kentucky Public Service Commission (KPSC) has approved a settlement agreement with the Kentucky Attorney General and other parties on the company’s first increase in base rates for electric service in 14 years.
As a result of the KPSC’s action, Duke Energy Kentucky will receive an increase of $49 million, or 20 percent, in annual revenues to be effective Jan. 1, 2007. Even with this increase, Duke Energy Kentucky’s rates will remain well below the national average.
The monthly bill for a typical residential customer using 1,000 kilowatt-hours of electricity will increase from $65.89 per month to $76.84 per month. Commercial and industrial rates will increase approximately 21 percent.
“We understand the importance of providing reliable service and have made investments to secure a dedicated source of electric supply for our customers in Northern Kentucky,” said Sandra Meyer, president of Duke Energy Kentucky.
To provide reliable service, Duke Energy Kentucky has:
Approximately $20 million of the $49 million increase reflects today’s higher fuel costs. Significant increases in the costs of coal, natural gas and purchased power have occurred since the company’s fuel rate was frozen in 2001. Beginning in March 2007, the monthly adjustments for fuel costs will resume.
The $1.3 million annual rate credit to share cost savings from the Cinergy-Duke Energy merger will continue to be in effect through April 2011, resulting in lower customer bills due to the combination.
To assist customers in managing their energy usage and bills, Duke Energy has multiple resources available that can be accessed through the “Lower Your Winter Bill” section of the company’s website, www.duke-energy.com, or by calling 1.866.2ENERGY (236-3749).
Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in the Americas, including 28,000 megawatts of regulated generating capacity in the United States. Duke Energy’s Kentucky operations provide 1,100 megawatts of safe, reliable and competitively priced electricity to more than 130,000 electric customers; the company also provides natural gas service to 93,000 customers in Northern Kentucky. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.