Company to submit application on March 2
If approved by regulators, new rates will take effect in 2018
A typical residential bill will increase by less than 1 percent
CINCINNATI – Duke Energy Ohio Tuesday submitted a notice to the Public Utilities Commission of Ohio (PUCO) stating the company’s intent to file for a regulatory review of its electric distribution rates on March 2.
Duke Energy last filed for a review of its electric distribution rates in 2012.
Why file for a regulatory rate review?
The pending regulatory filing is a legal requirement that follows the deployment of smart grid technologies across Duke Energy Ohio’s service territory in southwest Ohio. Duke Energy was the first Ohio utility to complete a full smart grid deployment.
As part of its electric grid modernization efforts, the company installed smart meters, communications nodes, self-healing networks and related technology between 2008 and 2015. Some of the smart grid costs Duke Energy Ohio incurred were recovered via a separate rider on customers’ bills.
One of the regulatory requirements of this rate review is to eliminate this rider and include the outstanding balance in base rates.
As a result of the company’s smart grid deployment, customers have access to more timely information about their electricity use. In addition, these technologies have helped reduce the frequency of power outages by 22.8 percent from 2008 to 2015.
How will this filing impact customer bills?
Duke Energy Ohio’s upcoming filing will only impact the electric distribution portion of customers’ monthly electric bills. For a typical residential customer, distribution accounts for about 34 percent of monthly charges. Most of the remainder is for electric supply.
According to data in Tuesday’s filing, a typical residential customer using 1,000 kilowatt-hours of electricity per month will see monthly bills increase about $1.15, or less than 1 percent.
Even with this nominal rate adjustment, typical Duke Energy Ohio residential bills will be less than both the statewide and national averages.
Duke Energy Ohio will file its application on March 2. Once that happens, the PUCO will initiate a detailed process that includes hearings in Columbus as well as public hearings in Duke Energy Ohio’s southwest Ohio service territory.
About Duke Energy Ohio/Kentucky
Duke Energy Ohio/Kentucky’s operations provide electric service to about 840,000 residential, commercial and industrial customers in a 3,000-square-mile service area and natural gas service to approximately 525,000 customers.
Headquartered in Charlotte, N.C., Duke Energy is an S&P 100 Stock Index company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.
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Media contact: Lee Freedman
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