Duke Energy OKs Settlement Over Rate Plan

By Dayton Business Journal

Duke Energy Ohio has reached a settlement agreement with parties who objected to a proposed electric rate plan thatâ¿¿s due to take effect Jan. 1.

Subject to approval by the Public Utilities Commission of Ohio, the new proposal would provide for a competitive auction process to determine electric rates in Dukeâ¿¿s territory. Duke estimates that customers will see a rate reduction of about 11 percent in their bills as of Jan. 1, the company said in a press release. Thatâ¿¿s roughly $14 a month for a typical residential customer, it said.

The Office of the Ohio Consumersâ¿¿ Council said in a statement that the deal will result in multiple competitive auctions to set the price of electric generation from January 2012 through May 2015.

The settlement is much different than the original proposal Duke introduced in June, which sought to price electricity for nearly 10 years, it said.

⿿Auctions in certain other parts of Ohio have lowered the prices that consumers pay for electricity,⿝ Interim Consumers⿿ Counsel Bruce Weston said. ⿿This settlement should bring rate relief to Duke customers who have been paying some of the highest electricity rates in the state during the last couple years.⿝

The settlement deal was praised by the Compete Coalition, a Washington, D.C.-based organization that supports competitive electric markets. It said in a statement that the agreement ⿿will help sustain and expand what currently is a robust electricity marketplace in Duke Energy Ohio⿿s service territory, where more than two-thirds of the total electricity used is now provided by competitive suppliers.⿝

⿿Thousands of customers throughout the Duke Energy Ohio service territory already are taking advantage of the opportunity to save on their electric bills by actively shopping and choosing their electric supplier,⿝ said Compete Coalition lawyer Bill Massey. ⿿The proposed settlement will help ensure that the benefits of competition enjoyed by customers in recent years are expanded even further.⿝

Charlotte, N.C.-based Duke Energy has about 685,000 electric customers in Ohio and 135,000 in Kentucky, including in the southern parts of the Dayton region in Butler and Warren counties.

The company is in the process of merging with Progress Energy.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/dayton/news/2011/10/25/duke-energy-oks-settlement-over-rate.html?ana=thestreet

Copyright bizjournals.com 2010

More from Commodities

Watch This If You're Wondering How Much Gold to Have and When to Sell

Watch This If You're Wondering How Much Gold to Have and When to Sell

How Can Gold Continue This Upward Momentum?

How Can Gold Continue This Upward Momentum?

Week Ahead: Investors Keep Economy in Check as Trade, North Korea Talks in Limbo

Week Ahead: Investors Keep Economy in Check as Trade, North Korea Talks in Limbo

Oil Rally Steadies Even as Potential Supply Disruptions Persist

Oil Rally Steadies Even as Potential Supply Disruptions Persist

The Outlook for Gold Prices Looks Awful Even With 10-Year Yields Above 3%

The Outlook for Gold Prices Looks Awful Even With 10-Year Yields Above 3%