Office of the Ohio Consumers' Counsel

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Contact: Ryan Lippe
(614) 466-7269

Duke Energy’s residential consumers to benefit from agreement in electric distribution rate case

COLUMBUS, Ohio – March 31, 2009 – Residential customers of Duke Energy will benefit from an electric rate case agreement filed by the Office of the Ohio Consumers’ Counsel (OCC), the staff of the Public Utilities Commission of Ohio (PUCO), the utility and other parties, the OCC announced today.

Among the benefits is a reduction in the annual revenue increase Duke will receive from $85.6 million to $55.3 million, an approximate 35 percent decrease from Duke's request pending at the PUCO. The agreement must be approved by the PUCO before it becomes effective.

The agreement also provides additional benefits for residential consumers, including a commitment by Duke to provide up to $40,000 monthly for payment assistance to as many as 10,000 households with incomes at or below 200 percent of the federal poverty level and not enrolled in the Percentage of Income Payment Plan. Customers already enrolled in a similar payment assistance program for Duke’s natural gas service will be enrolled automatically in this new electric program, while additional households will be able to sign up by contacting the utility.

“By sharply reducing the amount of the revenue increase provided to Duke, we have minimized the impact to customers’ rates at a time when households know that every dollar counts,” said Consumers’ Counsel Janine Migden-Ostrander. “In addition, the payment assistance for low-income households is crucial, especially because it will be open to customers whose incomes exceed the level served through existing opportunities such as the Home Energy Assistance Program.”

The parties also agreed that Duke will not be entitled to increase rates as part of this case for Hurricane Ike costs. Instead, Duke will have to file a separate application with the PUCO to request the recovery of costs associated with the September 2008 windstorm. Duke will have to prove whether its storm restoration activities were prudent and the costs incurred by the company were reasonable. A hearing will be held if one or more stakeholders have unresolved objections. The company is seeking $31 million in storm-related costs that would be passed onto its 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 Web site at www.pickocc.org.