Public Utilities Commission of Ohio Approves Settlement Agreement for Duke Energy’s Electric Security Plan
announced today that the Public Utilities Commission of
approved the settlement agreement on its electric security plan under
new energy law. The agreement establishes generation rates for 2009 through
2011.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040414/DUKEENERGYLOGO )
The settlement agreement was reached with most intervening parties, the
Staff of the PUCO and the Ohio Consumers’ Counsel in October and was then sent
to the PUCO for approval.
Under the settlement terms, the base cost for generation service will
increase by approximately 2 percent of the total bill annually in 2009 and in
2010 for residential customers, and each year from 2009 through 2011 for non-
residential customers. Additionally, the bill for generation service will
continue to include cost-based trackers for fuel and purchased power, capacity
purchases and environmental compliance expenditures.
Because fuel costs have dropped, total electric prices will decrease
effective
Under the terms of the settlement, the typical monthly cost for a
residential customer using 1,000 kilowatt-hours will be
2009
commission that we expect will impact rates in the second quarter of 2009.
“We are very pleased with the commission’s decision,” said
president of Duke Energy Ohio. “Duke Energy recognizes the monumental economic
challenges confronting people and businesses. We believe this net price
reduction will be a welcome relief to our customers during these trying
financial times.
“In addition, our plan will also provide Duke Energy with the resources
necessary to develop energy efficiency programs that will help all customers
reduce overall usage and energy bills,” she said.
Over the three-year term of the agreement, Duke Energy will contribute
Community Action Agencies will administer the funds for distribution to
eligible Duke Energy customers. In addition, low-income weatherization and
energy efficiency funding will increase to
The PUCO also approved a new infrastructure modernization program to
install Smart Grid technology. The new technology is an interactive digital
system that allows the company to communicate with customers about their
energy usage, monitor power quality, identify power outages, turn service
on/off remotely, read meters continuously, and support energy efficiency. As a
benefit of this program, tighter distribution system reliability targets have
been established.
The agreement also replaces the existing energy efficiency tracker with a
new Save-a-Watt model that will provide incentives to Duke Energy based on the
success of its energy efficiency programs and the avoided cost of building new
generation. The new energy efficiency programs will help customers lower their
overall bills and will help Duke Energy achieve the significant energy
efficiency targets established by
The settlement includes plans to develop an Electronic Bulletin Board that
will help customers compare competitor pricing for electric generation supply.
The agreement also establishes a new rider to fund economic development
investments that the PUCO may approve in the future.
Duke Energy’s
electric customers and natural gas service to approximately 425,000 customers.
Duke Energy, one of the largest electric power companies in
States
customers and natural gas service to approximately 520,000 customers in its
regulated jurisdictions. The company has approximately 35,000 net megawatts of
electric generating capacity in the Midwest and the Carolinas, and natural gas
distribution services in
than 4,000 net megawatts of electric generation in
joint-venture partner in a U.S. real estate company. Headquartered in
Stock Exchange under the symbol DUK. More information about the company is
available on the Internet at: http://www.duke-energy.com .
SOURCE Duke Energy