For a household that uses 1,000 kilowatt-hours of energy, Kroger said, “It’s going to be a monthly bill increase of approximately 2.4%, or $2.77.”
The actual change customers see on their bills will be dependent on how much energy a residential customer uses.
The formal approval last week accepts the previously agreed-upon, non-binding statutory settlement signed in late September by most, but not all, intervening parties in the case.
The approval is the latest progress in an extensive regulatory process that officially began in October 2021 when Duke Energy formally requested to raise its distribution rates to hit a target of around $55 million in additional yearly revenue to recoup already-made investments and turn a profit on those investments.
This application to the Public Utilities Commission of Ohio (PUCO) was followed by a rebuttal from PUCO’s technical staff which suggested that Duke Energy should only be approved for a maximum increase of about $15 million in revenue — about $40 million below Duke Energy’s initial request.
Over the following months, Duke Energy, PUCO’s technical staff and several other intervening parties all signed off on a statutory settlement in September that said all signed parties would be content with an additional $22.6 million in yearly revenue for Duke Energy.
The Ohio Consumers’ Counsel (OCC), which had originally suggested PUCO should force Duke Energy to lower its rates on the hundreds of thousands of residential consumers in southwest Ohio, was the most notable abstainer from the agreement.
Heading into the evidentiary hearing, the OCC argued against the compromise made by Duke Energy, PUCO’s technical staff and other signatories, including Ohio Partners for Affordable Energy, Citizens Utility Board of Ohio, Ohio Energy Group and Walmart Stores East & Sam’s East.
In a statement from the OCC to PUCO’s board, the state agency wrote: “OCC opposes the settlement because it is a bad deal for Duke’s residential consumers. The settlement would harm Duke’s residential consumers at a time when they are already vulnerable to soaring energy prices, inflation, and a possible recession.”
In a statement to the Journal-News, OCC spokesperson Merrilee Embs said the agency is contemplating further action against the PUCO board’s decision on the grounds that it harms electric customers.
“We asked the PUCO (board) to reject the settlement that Duke signed with the PUCO staff and others for a rate increase,” Embs said. “Now that the PUCO (board) has approved the rate settlement, we are considering our legal options for consumer protection.”
Matt Schilling, a spokesperson for PUCO, said intervening parties that would like to ask the board to reconsider its decision have 30 days after the judgment to submit that request.
“They have to file that application within 30 days and they have to point out how the commission’s ruling was ‘unlawful or unreasonable,’” Schilling said. “The commission would then either issue a ruling amending itself or simply saying, ‘No, we were right the first time, your application is rejected.’”
If the rate case should escalate into the judicial system, Schilling said it would be heard by the Supreme Court of Ohio.
For Duke Energy, Kroger said the utility provider has an interest in keeping rates low for consumers as prices across the board rise.
“It’s really something that we have to balance because we work hard every day to control our own costs within our company so that we can keep our rates competitive,” Kroger said, “but we also have to support our customers and make sure that we’re looking at today and we’re looking 5, 10 years down the line as well.”
Kroger said the decision will ultimately allow Duke Energy, which hasn’t increased its distribution rates since 2017, to continue its investment in what she calls a smarter, more reliable grid for its customers.
“This allows us to recover investments we have made in the past since our last rate case,” Kroger said. “Since then, we have invested multi-million dollars in improving the grid, [specifically with] smart grid technology, which really helps improve reliability and service for our customers.”
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