Ohio Regulators Approve New Electric Security Plan for Duke Energy Ohio - New rates effective Jan. 1, 2012, based on results of a competitive auction Nov. 22, 2011
The Public Utilities Commission of Ohio (PUCO) today approved a new Electric Security Plan (ESP) for Duke Energy Ohio.
The PUCO approved a stipulation, or settlement, without material modification, that Duke Energy Ohio reached in October with nearly all of the intervening parties in its ESP proceeding. In its ruling, the PUCO also approved the process that Duke Energy Ohio will use to set customer rates from Jan. 1, 2012, through May 31, 2015.
“Today’s decision by the PUCO balances the interests of customers, the state of Ohio and the company’s investors,” said Julie S. Janson, Duke Energy Ohio president. “The new ESP ensures that customers can take advantage of today’s low market rates when choosing their electric generation supplier, encourages competition in Ohio, and gives our company greater clarity and strategic flexibility regarding its operations.”
A typical residential customer, who purchases an average of 1,000 kWh a month from Duke Energy Ohio, is expected to see an approximately 11 percent rate reduction in their bill, or roughly $14 per month, starting Jan. 1, 2012. Actual rates will be calculated based on the results of a PUCO-approved competitive auction in December.
In addition to the competitive auction process, other key terms of the ESP include:
- A non-bypassable stability charge provided to the utility from 2012 to 2014
- A commitment that Duke Energy Ohio transfer its generating assets to an affiliate or subsidiary by Dec. 31, 2014
- Duke Energy Ohio’s continued support of economic growth and job creation within its service territory
- Funding for low-income families to support weatherization programs and fuel fund assistance and a discounted rate for a percentage of income payment plan customers.
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. 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.
Media - Sally Thelen
Analyst - Bill Currens