Duke Energy Kentucky files request for rate adjustment with public service commission
Duke Energy Kentucky recently filed a request with the Kentucky Public Service Commission (PSC) to review its electric distribution rates and approve a rate adjustment.
Overall, the company has proposed an adjustment that includes a $75.2 million increase, which would increase electric rates by 17.8 percent. If approved by the commission, the monthly electric bill for a typical residential customer using 1,000 kilowatt-hours per month would increase by approximately $25 per month.
The increases are related to the company’s ongoing investments in clean energy and strengthening the electric grid for its 150,000 electric customers in Northern Kentucky.
“We’re working hard every day to control our own costs and keep rates competitive as we balance smart investments to strengthen the electric grid with the tough economic climate we are all experiencing,” Amy Spiller, president of Duke Energy Ohio/Kentucky, said. “We know how vital reliable electricity is to our customers, communities, and region, and that energy is a significant monthly expense for our customers. We remain committed to helping our customers who are experiencing financial hardship.”
Since Duke Energy Kentucky’s last electric rate case was approved in April 2020, the company has invested more than $300 million to improve the system’s reliability and resiliency. It also includes costs to transition to a clean energy future, as the company is taking steps to reduce and eventually eliminate its reliance on coal-fired generation.
“A growing segment of our commercial customers have become increasingly clear on this topic,” Spiller said. “They expect us to invest in cleaner power and make economic growth decisions based on those expectations.”
The filing also includes proposals to provide customers with more value. Among them is the creation of two electric vehicle (EV) charging programs, including new tariffs for EV charging infrastructure and a make-ready credit for customers wishing to install a new EV charging station. Also proposed is a new, voluntary community-based solar program called Clean Energy Connection for customers wishing to invest in renewable energy resources to meet sustainability goals.
Any rate changes approved by the PSC would be reflected in a customer’s base rates, which is only one component of a customer’s electric bill. The PSC will review the rate case application in the coming months, host public meetings, and conduct a formal evidentiary hearing. The company estimates that the PSC will rule on the company’s request by summer 2023, with rate adjustments taking effect around July 1, 2023.
Duke Energy Ohio/Kentucky provides electric service to 880,000 residential, commercial, and industrial customers and natural gas service to 550,000 customers.
