Duke Energy Kentucky asks state commission for first rate increase in nine years
Duke Energy Kentucky is asking the Kentucky Public Service Commission to review its natural gas distribution rates following significant investments it has made in the natural gas distribution system.
Specifically, Duke Energy Kentucky, which serves about 100,000 customers in Northern Kentucky, is seeking approval to raise rates by approximately $10.5 million. It is the first request to change its natural gas rates in nearly a decade.
“We continue to make smart investments in data-driven projects designed to improve the reliability and resiliency of our energy delivery system,” Amy Spiller, president of Duke Energy Ohio/Kentucky, said. “These are strategic investments in our infrastructure and our region that are providing benefits to our customers today and will continue to do so for years to come.”
The company also informed the regulator that $5.2 million in annual savings — a result of the federal Tax Cuts and Jobs Act of 2017 — would partially offset the increases.
“The tax act has provided a unique benefit to our customers by offsetting some of this proposed increase,” Spiller said. “And this $5.2 million is in addition to the roughly $16.5 million in annual tax savings that we’re already passing along to our electric customers in Kentucky.”
Overall, residential customers who use an average of 53 Ccf of natural gas per month will see a $5.78 – or 10.2 percent – increase on their monthly natural gas bills. In that scenario, rates would go up from $56.79 to $62.57. The exact increase will vary depending on the amount of natural gas a customer uses as well as other factors.
The main driver for the increase is a $200 million investment the company has made in a variety of capital projects across Northern Kentucky since the last rate increase nine years ago.
“I commend our gas operations employees for keeping a close eye on our operation and maintenance costs and achieving many efficiency and productivity advantages in their work,” Spiller said. “Because of their intentional focus, we were able to continue delivering exceptional service without having to increase our rates for many years.”
Among the investments is an accelerated service line replacement program where main-to-curb and curb-to-meter service lines were updated.
Duke Energy Kentucky expects the rate review process to last until March or April 2019.
