Office of the Ohio Consumers' Counsel

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Consumers’ Counsel disappointed at PUCO’s failure to reconsider harmful Duke Energy rate case decision

COLUMBUS, Ohio – July 23, 2008 – The Office of the Ohio Consumers’ Counsel (OCC), the residential utility consumer advocate, today criticized a decision by the Public Utilities Commission of Ohio (PUCO) to uphold a May 2008 order that will increase the flat-rate customer charge by more than 300 percent over the next year while lowering the portion of the delivery charge that varies according to how much gas a customer uses. This increase in the flat-rate charge is well above what Duke originally requested.

“By loading many of Duke’s costs in to the flat-rate customer charge, the PUCO is taking away incentives for residents to be energy efficient at a time when household budgets are strained and tools are needed to help lower their monthly bills,” said Janine Migden-Ostrander, Consumers’ Counsel. “This does not make sense.”

The PUCO order raising Duke’s monthly customer charge that must be paid regardless of how much natural gas a customer uses, from the current $6 charge to $15 through Sept. 2008. At that point, consumers will pay $20.25 per month through June 2009, and $25.33 in every month after that. The customer charge includes the cost a utility charges its customers for services such as meter reading, billing and maintaining the distribution equipment.

“The result of the PUCO’s decision may cause residents living in small homes to subsidize those in large luxury homes for the delivery portion of their bill. The PUCO’s decision means customers will pay these higher flat-rate amounts every month whether they use any natural gas or not, and whether they conserve or not.”

The delivery rate portion of a customer’s bill includes a flat-rate customer charge as well as a component known as the volumetric charge that varies according to how much natural gas a customer uses. The OCC opposes raising the flat-rate customer charge because it will disproportionately impact low-usage and low-income residential customers.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.