Duke Energy Ohio Receives Gas Rate Approval

Duke Energy Ohio has received approval from the Public Utilities Commission of Ohio and all intervening parties for an increase of $18.2 million, or 3%, in natural gas base rates.

The settlement approved by the Public Utilities Commission of Ohio (PUCO) permits continued recovery of costs for Duke Energy Ohio’s accelerated main replacement program, which will continue to improve the reliability and safety of the natural gas delivery system.

It also allows for recovery of costs to comply with a statewide safety program to replace certain types of risers that connect the gas service line to the gas meter.

The PUCO decided the single remaining issue not resolved in the settlement by moving more of the fixed charges of providing gas service, such as capital investment in pipes and regulating equipment, billing and meter reading, to a monthly charge of $15 in summer 2008, increasing to $20.25 in October 2008, rather than including them in the per unit charges.

The fixed charge will effectively increase to $25.33 a year. This design reportedly lowers costs associated with usage and will minimize bills during times of extreme weather.

Sandra Meyer, president of Duke Energy Ohio, said: “We are very pleased that the PUCO and all parties to the case recognize the importance of our efforts to improve the reliability and safety of our gas distribution system. The order allows us to improve service quality at a reasonable cost to customers.”