Julie S. Janson, Duke Energy president of Ohio and Kentucky, explains, “We believe this proposal balances the interests of a number of stakeholders including our customers and investors, while ensuring the state’s long-term energy future. Our customers have told us they want both choice and predictability. We believe our approach promotes competition, offers price stability over the nine-year life of the ESP and satisfies the company’s need to plan for investing in the long-term energy requirements of our region.”
Under the proposed ESP, customers would pay for capacity through a cost-of-service-based charge, while energy would be priced and purchased through a competitive auction. As such, the plan is structured to include a market-based or competitive element and also provides for a mechanism in which net profits from the sale of energy and ancillary services from the dedicated Duke Energy Ohio power plants would be shared between customers and the company in a 80 -20 percent split.
If approved by regulators, Duke Energy Ohio residential customers who use about 1,000 kWh a month will see their bill increase approximately 3 percent, or roughly $4 per month, beginning Jan. 1, 2012.
As part of the proposed ESP, Duke Energy Ohio plans to create a new program called Advance Southwest Ohio, which would be funded by five percent of the net profits from energy and ancillary services sales. Advance Southwest Ohio will make grants designed to attract and retain targeted industries, jobs and economic investment.
Duke Energy Ohio’s operations provide electric service to approximately 685,000 customers and natural gas service to approximately 400,000 customers. To read Duke Energy Ohio’s proposed ESP, visit www.puco.ohio.gov.
Duke Energy is one of the largest electric power holding companies in the United
States, serving approximately four million customers in five states.