Duke Energy Ohio reaches agreement in electric and natural gas distribution
CINCINNATI, April 2, 2013
CINCINNATI, April 2, 2013 /PRNewswire/ --Duke Energy Ohio has reached an
agreement with all intervening parties, including the Staff of the Public
Utilities Commission of Ohio (PUCO), concerning the company's request to
increase the rates Ohio customers pay for electric and natural gas
(Logo: http://photos.prnewswire.com/prnh/20130322/CL81938LOGO )
Under the terms of the settlement, the net annualized increase for electric
distribution service would be a $49 million revenue adjustment with no revenue
adjustment for natural gas distribution service. For electric customers, this
translates to an average annual increase of 2.9 percent. The typical Ohio
residential electric customer would see an increase in their bill of $3.72 a
Major components of the settlement:
The settlement includes the following key components:
oA return on equity (ROE) of 9.84 percent for both the electric and natural
gas distribution cases
oA capital structure of 53.3 percent equity and 46.7 percent debt,
consistent with the company's existing capital structure
oProvide ongoing funding of low income weatherization programs and a fuel
fund, in the amount of $700,000 per year, funded by shareholders
oAcceptance of the commission staff's recommendation to deny the facilities
The settlement does not resolve all issues related to the natural gas
distribution case. The parties to the agreement will litigate the recovery of
costs to comply with environmental requirements impacting the company's former
manufactured gas plant (MGP) sites.
The settlement is subject to the review and approval of the PUCO. Settlement
hearings are scheduled to begin April 3, 2013, while hearings on the recovery
of MGP remediation costs are expected to begin April 29, 2013.
If approved, revised electric distribution rates are expected to be
implemented by mid-year.
"The proposed settlement balances the needs of our customers and our
investors. We understand there is never a good time to increase rates," said
Jim Henning, president, Duke Energy Ohio. "However, we believe this settlement
allows us to keep the rate increase to Ohio customers as low as we reasonably
can, while still recovering the investments we've made to modernize our system
to ensure safe and reliable services for the future."
Duke Energy Ohio
Duke Energy Ohio's operations provide electric service to approximately
690,000 customers and natural gas service to approximately 400,000 customers.
Duke Energy is the largest electric power holding company in the United States
with more than $110 billion in total assets. Its regulated utility operations
serve approximately 7.2 million electric customers located in six states in
the Southeast and Midwest. Its commercial power and international business
segments own and operate diverse power generation assets in North America and
Latin America, including a growing portfolio of renewable energy assets in the
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded
on the New York Stock Exchange under the symbol DUK. More information about
the company is available at: www.duke-energy.com.
Media Contact: Blair Schroeder
Office: 513.287.2428 | 24-Hour: 800.559.3853
Analysts Contact: Bob Drennan
Analysts Contact: Bill Currens
SOURCE Duke Energy
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