Electric Choice Overview
Background—Electric Restructuring Act
Since January 2001, Ohio electric customers of Duke Energy Ohio 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 Ohio (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 Ohio's Electric Security Plan-Standard Service Offer (ESP-SSO) to replace the MBSSO. The plan requested recovery of costs for fuel used to generate electricity, electricity purchased wholesale, emission allowances and federally mandated carbon taxes. The goals of the plan included price stability, ensuring an adequate supply of electricity, promoting economic development, job retention, energy efficiency and conservation. The plan was in effect through December 31, 2011.
On January 1, 2012 the Standard Service Offer - Electric Security Plan (SSO-ESP) went into effect and will run through May 31, 2015. The plan assesses customer rates based upon fully competitive auctions. The plan also provides DE-Ohio with a non-bypassable stability charge from 2012 to 2014 and requires Duke Energy Ohio to transfer it's generation assets at net book value to an affiliate or subsidiary by December 31, 2014. The plan provides continued funding of economic growth and job creation within Duke Energy Ohio's service territory as well as provides funding for low income families to support weatherization programs and fuel fund assistance and guaranteed discount for customers participating in Duke Energy Ohio's percentage of income payment plan.
Statement of Duke Energy Ohio's Reliability of Services
If as a Duke Energy Ohio 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 Ohio include:
- Rider RC (Retail Capacity Rider) recovers the cost of generation capacity purchased in competitive auctions.
- Rider RE (Retail Energy Rider) recovers the cost of energy purchased by Duke Energy Ohio in competitive auctions.
- Rider AER-R (Alternative Energy Recovery Rider) recovers Duke Energy Ohio's costs of complying with the State of Ohio's Alternative Energy requirements.
- Rider RECON (Fuel and Reserve Capacity Reconciliation Rider) Allows Duke Energy Ohio to recover costs incurred, but not recovered, under its 2009-2011 Electric Security Plan. This charge expired June 30, 2012.
- Rider RTO (Regional Transmission Organization Rider) recovers certain costs incurred by Duke Energy Ohio relating to its participation in FERC-approved regional transmission organizations.
- Rider SCR (Supplier Cost Reconciliation Rider) ensures that Duke Energy Ohio recovers 100% of the cost it incurs in procuring energy and generation capacity for its generation customers through competitive auctions.
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 Ohio customers.
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.