Frequently Asked Questions Energy Efficiency Opt-Out Provision

As the demand for energy grows, we believe part of the solution includes helping our customers use energy more efficiently through our cost-effective Energy Efficiency programs.

Duke Energy’s Energy Efficiency (save-a-watt) model represents an important departure from traditional energy efficiency regulatory treatment and encourages investment in cost-effective energy efficiency programs. The model supports the development of demand response and conservation programs, helping customers reduce energy consumption and improve the energy efficiency of their electrical equipment.

The cost of these programs is shared among our customers through the cost recovery (DR-SAW) rider, which began with our Jan. 1, 2009 billing period.

The DR-SAW Rider is $0.001631 cents/kWh for nonresidential customers. This equates to an increase of approximately 1.5 percent for the typical commercial or industrial customer. However, customers actively participating in the PowerShare and Smart $aver programs could reduce their bills up to 15 percent or more.

Based on the Public Utilities Commission of Ohio’s approval of the Energy Efficiency rider, mercantile customers with accounts using more than 700,000 kWh annually may elect to opt out and avoid paying the charges if, at their own expense, they have implemented in the past or plan to implement alternative energy efficiency measures that result in peak demand reductions equal to or greater than the applicable annual percentage statutory energy savings and/or peak demand reduction benchmarks to which Duke Energy Ohio is subject. For more information on opt-out eligibility for past and future energy and demand savings results, please review the final case rules found at www.puco.ohio.gov.

Qualifying customers must first notify Duke Energy of their request to opt out of participating in the Energy Efficiency programs by completing the Rider Exemption Application. The request must demonstrate that the account(s), at their own expense, have either implemented or plan to implement alternative DR/EE measures in accordance with stated, quantifiable goals. The customer must then file an application for authority to opt out with the Public Utilities Commission of Ohio. Duke Energy may or may not join with the customer on this application.

Yes, opt out and opt in are on a year-by-year basis, as well as the Energy Efficiency charges. However, once a customer receives incentives from the program, there are some residual charges to the customer even if they choose to opt out within five years of installation or the life of the measure, whichever is greater.

Yes, qualifying customers may choose to opt out for select accounts or locations, at their sole election. However, the customer cannot opt out of individual programs.

You may do either. To opt out all accounts, the cumulative energy efficiency savings as a percentage of your company’s total kWh consumption must meet the energy and peak demand benchmarks set forth by the state of Ohio.

A Rider Exemption Application is provided for your convenience on this Web site. You may download this document, enter the information in the required fields, save the document to your hard drive, and then attach it to an e-mail. The form can also be mailed or faxed.

Mail to:
Duke Energy
Business Service Center
139 E. Fourth Street
Mail Code: EY575
Cincinnati, OH 45202

E-mail to:
BSC-Programs@duke-energy.com

Fax to:
513-287-4367

You may opt out of the DR-SAW Rider beginning May 1, 2009. Please note that the ability to opt out is contingent upon approval by the Public Utilities Commission of Ohio.

If you have additional questions, please contact your Duke Energy business relations manager or our Business Service Center at BSCTeam@duke-energy.com.

For complete Energy Efficiency opt-out rules, please go to http://www.puco.ohio.gov/ and use the following directions to navigate the site:

• Click on the “DIS” Link on the left side of the page
• Search by industry (“EL” Electric)
• Click on ORD Case List
• Find Case No. 08-888-EL-ORD
• See the most recent Opinion and Order for the rules.