Commercial and industrial customers would see an average increase of 4.6 percent for electricity and 3.7 percent for natural gas.
If approved, the revised rates are expected to be implemented in early 2013, said Duke spokeswoman Paige Sheehan.
Sheehan said Duke will file its applications and testimony in mid-July. After the application is filed, the PUCO will hold public and evidentiary hearings before ruling on the case.
“The timing is up to the PUCO for a decision,” she said.
Duke is required to distribute electricity and natural gas to all customers in a specific area at rates set by the PUCO.
Company officials said the average customer would still pay less for electricity and natural gas than they did in 2011 due to low market prices.
The proposed rate increase would also compensate the company for investments already made in the infrastructure that delivers electricity and natural gas to customers.
Duke officials said if the request is approved, a typical Ohio residential customer who uses 1,000 kilowatt hours of electricity each month will pay approximately $116 a month, or about 5.3 percent less than in June 2011.
“Although the distribution component of customer bills is going up, customers continue to benefit from lower generation prices for electricity and low commodity prices for natural gas,” said Julie Janson, Duke Energy Ohio president. “In fact, electric and natural gas rates paid by Duke Energy Ohio customers are among the lowest in the state.”
Company officials said Ohio’s competitive electric generation market, generation prices have been coming down. Duke said the need to increase electric distribution rates was due to:
• A $310 million investment in projects to improve reliability for customers.
• Increases in the general costs to operate and maintain the distribution system.
• A decline in sales volumes since electric distribution rates were last approved in 2009.
Duke officials said its Ohio customers are paying about 45 percent less for natural gas than they were in 2006 and 18 percent lower than 2011, due to sharply lower natural gas commodity prices.
If the proposed gas distribution rate increase is approved by the PUCO, the typical residential customer who uses 70CCF of natural gas a month will pay about $75 a month.
About the Author
