Duke Energy Ohio's electricity security plan settlement approved
The settlement agreement was reached with most intervening parties, the Staff of the Public Utilities Commission of Ohio (PUCO) and the Ohio Consumers' Counsel in October 2008 and was then sent to the PUCO for approval. Under the settlement terms, the base cost for generation service will increase by approximately 2% of the total bill annually in 2009 and in 2010 for residential customers, and each year from 2009 through 2011 for non-residential customers. Additionally, the bill for generation service will continue to include cost-based trackers for fuel and purchased power, capacity purchases and environmental compliance expenditures. Duke Energy has said that, as fuel costs have dropped, total electric prices will decrease effective January 1, 2009. Under the terms of the settlement, the typical monthly cost for a residential customer using 1,000kWh will be $117.06 in January 2009, compared with the current monthly bill of $121.64, a decrease of $4.58. This comparison does not include another rate action pending before the commission that we expect will impact rates in the second quarter of 2009.