Business - Duke’s electric security plan includes rate hike

Duke Energy Corp. on Thursday filed an electric security plan (ESP) with the Public Utilities Commission of Ohio which, if approved, would raise customers’ rates by about $5 a month.

The three-year plan, mandated by Ohio’s new energy law, is meant to assure reliable electric service with competitive and predictable pricing, increase renewable energy resources, promote economic development and assist low-income customers, Duke said in a news release.

“As energy prices increase because of market forces, our ESP will protect customers from extreme price volatility and provide a reasonable return to our investors,” said Sandra Meyer, president of Duke Energy Ohio, in the release.

Included in the filing is a request for an annual revenue increase of 6.2 percent, which Duke said would raise the monthly bill for a customer using 1,000 kilowatt hours to $115.70 from $110.89.

The company said that under the plan, it will:

• Establish an “economic competitiveness fund” that would commit $1 million to “green” infrastructure projects, like mass transit.

• Create an electric bulletin board that would allow customers to choose a market price from Duke and other suppliers.

• Implement a “smart grid” to improve the delivery system and energy efficiency.

• Develop a pilot program that would provide rate discounts for low-income customers.

Duke earlier in the week announced it is seeking requests for proposals from suppliers of renewable and long-term traditional energy to comply with the reliability provision of the law.

Duke Energy (NYSE: DUK), based in Charlotte, N.C., includes the former Cincinnati Gas & Electric Co., Union Light, Heat and Power in Kentucky, and PSI Energy in Indiana. The company also operates Duke Power in the Carolinas.




Source : bizjournal