June 25, 2008
Duke Energy Ohio to Seek Electric Delivery Rate Change to Be Effective in Mid-2009
CINCINNATI, June 25 /PRNewswire-FirstCall/ -- Duke Energy Ohio announced today it has filed notice with the Public Utilities Commission of Ohio that it will seek a rate increase for electric delivery service of approximately $86 million, or 5.5 percent on total electric revenues, to be effective in the second quarter of 2009.
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However, when combined with the end of a transition charge related to Ohio's electric customer choice legislation, typical residential customers' bills will be lower than today.
For a typical residential customer using 1,000 kilowatt-hours of electricity per month, the monthly bill will decrease 1.5 percent from $111.35 to $109.64, based on Duke Energy Ohio's current rates for delivery and standard generation service. The total bill may vary for customers receiving generation service from a supplier other than Duke Energy.
Since its last electric delivery rate case in 2005, Duke Energy Ohio has invested more than $235 million in reliability improvements and in expansion of its system to meet new customer demands, including new substations and distribution circuits. The requested rate change would recognize the additional investment.
"As customers use more sophisticated electronics and systems in their homes and businesses, they tell us that reliability of their electric service is becoming even more critical," said Sandra Meyer, president of Duke Energy Ohio. "To meet our customers' increasing needs, we are making additional investments in our delivery system to improve reliability and reduce the length of power outages."
To make customer bills more even throughout the year, Duke Energy Ohio is proposing to increase the monthly fixed delivery charge from $4.50 to $10, with an offsetting reduction in the usage-based charge. The fixed charge will cover substantially all costs of billing, metering and certain equipment necessary to serve customers on demand.
The company is also proposing a reliability tracker that would allow smaller annual increases to reflect increased investment in the delivery system. It would also facilitate the move to a Smart Grid, which will create an interactive delivery system that provides enhanced system maintenance and automatic meter reading, eliminating the need for estimated meter readings and inside meter reading. Smart Grid technology will also provide customers with real-time usage information to help customers monitor and control their energy usage.
Duke Energy Ohio recognizes the impact of higher electric prices on its customers and offers energy efficiency programs, bill management assistance and energy usage information for both residential and non-residential customers, which are available on its web site, http://www.duke-energy.com/ .
Duke Energy's Ohio operations deliver safe, reliable and competitively priced electricity to approximately 687,000 electric customers and natural gas service to approximately 424,000 customers.
Duke Energy, one of the largest electric power companies in the United States, supplies and delivers electricity to approximately 4 million U.S. customers in its regulated jurisdictions. The company has approximately 35,000 megawatts of electric generating capacity in the Midwest and the Carolinas, and natural gas distribution services in Ohio and Kentucky. In addition, Duke Energy has more than 4,000 megawatts of electric generation in Latin America, and is a joint-venture partner in a U.S. real estate company.
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: http://www.duke-energy.com/ .
CONTACT: Steve Brash Phone: 513-419-5966 24-Hour: 704-382-8333
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Contact: Steve Brash of Duke Energy, +1-513-419-5966, or 24-Hour,+1-704-382-8333
Web site: http://www.duke-energy.com/
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