July 31, 2008
Duke Energy Ohio Files Electric Security Plan
To: STATE EDITORS
Contact: Steve Brash of Duke Energy, +1-513-419-5966, 24-Hour: +1- 704-382-8333CINCINNATI, July 31 /PRNewswire-FirstCall/ -- Duke Energy Ohio today is filing its electric security plan (ESP) with the Public Utilities Commission of Ohio as required under the new Ohio energy law, which takes effect today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040414/ DUKEENERGYLOGO ) The three-year plan has four primary goals:
-- Provide reliable electric generation service
-- Maintain competitive, predictable pricing
-- Increase renewable energy resources and energy efficiency
-- Support the community through economic development and low income
"We have developed a balanced plan that provides new options for customers, while continuing to dedicate our efficient, legacy generating assets to our Ohio retail customers," said Sandra Meyer, president of Duke Energy Ohio. "As energy prices increase because of market forces, our ESP will protect customers from extreme price volatility and provide a reasonable return to our investors."
As part of its supply plan supporting the ESP's goals to provide reliable sources of electricity at reasonable prices, Duke Energy Ohio has recently issued requests for proposals for renewable energy supplies and long-term traditional generating capacity. These requests will add fuel diversity, comply with the renewable portfolio standard under the new energy law and balance available supply with customer demand for the three-year period of the ESP and beyond.
A new Economic Competitiveness Fund would commit $1 million toward public green infrastructure projects, such as mass transit, and would provide opportunities to support regional job creation and retention activities. The ESP also includes an integrated smart grid proposal that will improve the delivery system and enable increased energy efficiency to meet the new law's requirements.
To support customer choice, the ESP proposes an electronic bulletin board that will give customers the opportunity to voluntarily choose a market price from Duke Energy Ohio and other competitive suppliers.
The initial ESP request amounts to an increase of 6.2 percent in total annual electric revenues. For a typical residential customer using 1,000 kilowatt-hours per month, the net generation price impact under the ESP would increase monthly bills from $110.89 to $115.70, or 4.3 percent, at the beginning of 2009. This comparison does not include the impact of Duke Energy Ohio's recent delivery rate filing of approximately 5 percent for a typical residential customer that is expected to be effective in second quarter 2009.
"We recognize the impact of higher rates on customers whose finances are already stretched by higher gasoline and food prices, so we are making proposals that will help address the increases," said Meyer.
The company is proposing a new pilot program designed to assist low-income customers by providing rate discounts totaling $1.5 million over the next three years to those meeting income guidelines. The proposal also expands energy efficiency programs and low-income weatherization, increasing funding for weatherization to $3 million over the next three years.
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 (NYSE: DUK), 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: www.duke-energy.com.
CONTACT: Steve Brash
SOURCE Duke Energy
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