Duke Energy Ohio Proposes Long-Term Electric Security Plan June 20, 2011
CINCINNATI, OHIO -
- Includes unique mechanism to fund job growth and attract economic investment in the region
- Preserves customer choice, a competitive energy market and future rate stability
- Provides better opportunity for financial stability of Duke Energy Ohio
Duke Energy Ohio today asked regulators for approval of an Electric Security Plan (ESP) for its customers beginning Jan. 1, 2012. Under the proposal, rates would be in effect through May 31, 2021.
“We believe this proposal balances the interests of a number of stakeholders including our customers and investors, while ensuring the state’s long-term energy future,” said Julie S. Janson, president, Duke Energy Ohio and Kentucky. “Our customers have told us they want both choice and predictability. We believe our approach promotes competition, offers price stability over the nine-year life of the ESP and satisfies the company’s need to plan for investing in the long-term energy requirements of our region.”
Under the proposed ESP, generation remains unbundled and separate from transmission and distribution service. The plan further unbundles generation service by separating capacity (physical assets) from energy (the actual output). Customers would pay for capacity through a non-bypassable, cost-of-service-based charge, while energy would be priced and purchased through a competitive auction.
In other words, the plan is structured to include a market-based or competitive element, while also affording customers with the stable prices and reliable supply, on which they can depend.
The plan also provides for a unique mechanism in which net profits from the sale of energy and ancillary services from the dedicated Duke Energy Ohio power plants would be shared between customers and the company, 80 percent and 20 percent, respectively.
If approved by regulators, Duke Energy Ohio residential customers who use about 1,000 kWh a month will see their bill increase approximately 3 percent, or roughly $4 per month, beginning Jan. 1, 2012.
Jobs and Economic Development
Duke Energy Ohio is committed to supporting the economic growth and vitality of the region it serves. As part of the proposed ESP, the company plans to create an innovative new program called Advance Southwest Ohio, which would be funded by 5 percent of the net profits from energy and ancillary services sales. Advance Southwest Ohio will make grants designed to attract and retain targeted industries, jobs and economic investment.
To read Duke Energy Ohio’s proposed ESP, visit the Duke Energy website or www.puco.ohio.gov.
Duke Energy Ohio
Duke Energy Ohio’s operations provide electric service to approximately 685,000 customers and natural gas service to approximately 400,000 customers.
Duke Energy is one of the largest electric power holding companies in the United
States. Its regulated utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 12 million people. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.
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. To learn about Duke Energy in the Greater Cincinnati community, visit http://news.duke-energy.com/2010/09/21/duke-energy-in-the-community.
Stephen De May