Ohio PUCO accepts results of FirstEnergy auction

COLUMBUS, OHIO (Jan. 23, 2013) – The Public Utilities Commission of Ohio (PUCO) today approved the results of FirstEnergy’s sixth wholesale auction that will ultimately determine its retail generation service rates through May 2016.

During the 17-round auction, held Jan. 22, 2013, four competitive suppliers submitted winning bids for the opportunity to provide electricity to FirstEnergy customers. The auction resulted in an average clearing price of $0.05917 per kilowatt hour for the delivery period June 1, 2013 through May 31, 2016. The results will be blended with previous auctions, and four upcoming auctions to establish retail generation rates from June 1, 2013 through May 31, 2016.

CRA International served as the independent auction manager, and Boston Pacific Company, a consultant retained by the PUCO, monitored the auction process. The names of the winning bidders will remain confidential for 21 days.

Customers continue to have the opportunity to consider competitive options to meet their electricity needs, including shopping for an alternate supplier or joining a local government aggregation group. More information about how to choose a supplier is available at www.PUCO.ohio.gov. The PUCO’s Apples to Apples rate charts provide customers with a snapshot comparison of current electric supplier price options and contract terms. The PUCO updates the charts on a regular basis and verifies each supplier offer to ensure accuracy.

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.