PUCO adopts settlement agreement resolving cases in Duke Energy Ohio electric service territory
The Public Utilities Commission of Ohio (PUCO) adopted a settlement agreement Wednesday resolving Duke Energy Ohio’s distribution rate case, electric security plan (ESP), reliability standard case and power purchase agreement.
“With today’s decision, Duke joins Ohio’s three other electric distribution utilities in having regulatory certainty into the mid-2020s,” PUCO Chairman Asim Z. Haque said. “Over the next six years, Duke will make investments to improve reliability and modernize the electric grid, in line with the PUCO’s PowerForward initiative.”
The order lowers Duke’s base distribution rate cases by more than $19 million annually and establishes a rate of return of 7.54 percent. Duke will provide $772,000 in funding annually for several low-income assistance programs in coordination with the city of Cincinnati and People Working Cooperatively.
Duke’s ESP will continue to set default generation rates through competitive auctions through May 2025. The company will also continue to make grid modernization investments and capital improvements during the term of the ESP, subject to annual cost caps and ongoing PUCO review. Through a new pilot, Duke will apply with PUCO to invest in battery storage projects.
During the term of the ESP, Duke will also pursue more aggressive annual reliability measures and continue its five-year vegetation management program to ensure system reliability.
The company will recover and credit the net proceeds from selling power from its share of the Ohio Valley Electric Corporation into the regional marketplace through the non-bypassable Price Stabilization Rider.
As a result of Wednesday’s decision, a residential customer using 1,000 kilowatt hours per month will see an increase in their monthly bill of approximately $1.57. PUCO noted that a proceeding regarding a rate reduction due to the Tax Cuts and Jobs Act of 2017 is pending.
