Electric Choice Overview
Background—Electric Restructuring Act
Since January 2001, Ohio electric customers of Duke Energy have been able to choose a certified supplier to provide competitive retail electric generation service. This initial stage of Ohio Electric Choice, called the “Market Development Period” (MDP), expired for residential customers on December 31, 2005.
Choice Plan Modified—Puco Ruling
Anticipating the end of the MDP, the Public Utilities Commission of Ohio (PUCO) approved a plan in 2004 that still allowed customers to choose their generation supplier, but also established a new Market-Based Standard Service offer (MBSSO) for customers receiving full service from Duke Energy (i.e., generation, transmission and delivery). The MBSSO was in effect for 3 years, ending December 31, 2008. This plan allowed for the first increase in the generation price in over 10 years.
On December 17, 2008, the Commission approved Duke Energy's Electric Security Plan-Standard Service Offer (ESP-SSO) to replace the MBSSO. The plan requests recovery of costs for fuel used to generate electricity, electricity purchased wholesale, emission allowances and federally mandated carbon taxes. The goals of the plan include price stability, ensuring an adequate supply of electricity, promoting economic development, job retention, energy efficiency and conservation. The plan will be in effect through December 31, 2011.
Statement of Duke Energy's Reliability of Services
If as a Duke Energy customer, you select another generation supplier, it will in no way jeopardize the reliability of your electric service.
Unbundling (Separation) of Services
Today, the pricing for electricity is unbundled (separated) and identified on your bill. When a customer selects a generation supplier, the charges they no longer pay to Duke Energy include:
- Generation Charges—charges associated with the production of electricity
- Transmission Cost Rider (Rider TCR)—charges are for the operation, maintenance, and managing the flow of electricity through the transmission system.
- Fuel and Purchased Power Rider (Rider FPP)—charges related to fuel and emission allowances to provide electric generation service.
- Annually Adjusted Component Rider (Rider AAC) - is a charge associated with environmental compliance, taxes and homeland security.
In addition, non-residential customers have the option to waive (not pay for) the following Rider, provided that they meet the conditions described in the "Waiver Notification Information" section of the "Commercial - Electric Customer Choice Information" link on this Web site:
- System Reliability Tracker (Rider SRT) - charges that provide dollar for dollar recovery of the costs incurred by Duke Energy for reserve capacity related to power purchases.
Certified Suppliers
Competitive providers of generation are known as certified electric suppliers. Suppliers must meet certain financial, managerial, and operational criteria before they are certified. A supplier must be certified before marketing its services to Duke Energy customers.
Switching Suppliers
Most Ohio customers are eligible for electric choice. To switch to another supplier, contact the supplier directly. For a list of certified suppliers, you can view our supplier list Web site.
