Duke Energy Files for Electricity and Gas Rate Increases in Ohio

Duke Energy Ohio filed for rate increases that would raise  electric and gas bills for customers in southwest Ohio.

On Monday, the Cincinnati-based utility filed applications with the Public Utilities Commission of Ohio, asking for approval of an $86.6 million increase in the electric rates and a $44.6 million increase in gas rates. Duke wants the rate increases to take effect in January 2013.

Under the proposals, commercial and industrial customers would see about a 4.6 percent increase in electric rates and about a 3.7 percent increase in gas rates.

The Office of the Ohio Consumers’ Counsel has filed to intervene in the case on behalf of consumers, but is still reviewing details of Duke’s applications before commenting, Consumers’ Counsel spokesman Marty Berkowitz said.

The proposed electric rate increase would affect 690,000 customers in all or parts of Brown, Butler, Clermont, Clinton, Hamilton, Highland, Preble, Montgomery and Warren counties. The proposed gas rate increase would affect 420,000 customers in all or parts of all those counties with the exception of Preble.

Duke Energy spokesman Jason Walls said the increases would allow the utility “to begin collecting from customers the investment it has already made to improve the electric and gas systems.”

Duke has invested $310 million in projects to improve electric service reliability, according to the utility. The electric rate increase also is needed because of increases in general operation and maintenance costs for the distribution system and because of a decline in sales volumes since 2009.

The natural gas rate increase is needed to help reimburse the utility for the more than $500 million it invested in upgrading pipes and other parts of the gas distribution system at a time when the volume of natural gas sales had declined and for the more than $65 million needed to clean up two former manufactured gas plants.

Duke Energy will have 60 days to provide supporting testimony before the Public Utilities Commission staff makes its recommendation. Time also will be allowed for any objections to be filed and for public hearings before the commission makes its decision. The commission has 275 days from the time of the application to make its decision.

Duke Energy Ohio Intends to Increase Distribution Rates for Early 2013

Yesterday, Duke Energy Ohio has filed a notice with the Public Utilities Commission of Ohio (PUCO) with the company’s intention to increase distribution rates for electric service customers by $86 million and natural gas customers by $44 million.

The decision will be made at a hearing this mid-July, and if approved commercial and industrial customers will see an average price increase of 4.6% for electricity and 3.7% for natural gas.  These prices are to be in effect starting early 2013.  The increase in distribution rates will accommodate for the company’s recent investments in projects to improve the reliability of the distribution system and generation processes.

Duke officials said that even if this testimony is approved by PUCO, on average consumers would still be paying less for their electricity and natural gas.  This is due to the pressure of the market causing a trend of lower market prices.

Judie Janson, Duke Energy Ohio president, went on to add that Duke customers would even remain among the lowest paying customers in the state.  As of this writing, prices from a variety of Better Cost Control competitive suppliers in Ohio are lower than the prices that will be offered by Duke Energy.  We recommend using an electricity broker to obtain the best prices and contract terms.

To learn more about a fixed price electricity contract to protect your company from price fluctuations, contact us via email or call 800-454-0027 x150.