Duke Energy Ohio recently announced it will file an application with the Public Utilities Commission of Ohio seeking an increase of $34 million, or 5.8 percent overall, in natural gas rates. The increase would be effective in the early- to mid-2008 and is the first general rate filing since 2001.
Duke Energy Ohio says it has invested more than $460 million to expand its natural gas delivery system to meet customer growth and make other safety, reliability and efficiency improvements. In addition to that investment, the company says it has also experienced increases in operating costs for delivery service consistent with inflation, creating the need for a rate increase.
"We have made significant investments in our natural gas system to meet customer growth and improve safety and reliability," said Sandra Meyer, president of Duke Energy Ohio. "These investments have enhanced service and reduced maintenance expenses, helping to minimize the requested increase."
The company is seeking to implement the increase for residential customers over a three-year period to gradually establish rates for all customers that reflect the actual cost of providing service. The actual amount of the bill will depend on the cost of natural gas at the time the increases take effect and the level of increase authorized by PUCO. Natural gas costs are billed to customers at the company's cost or at the customer's agreed upon price with an alternative supplier, in either case without profit to Duke Energy Ohio.
Duke Energy Ohio is planning to increase its funding for low-income weatherization by 50 percent to assist customers in managing their energy usage.
For more on the rate increase, see the Duke Energy Ohio press release.
