Summary
This 8-K filing reports a significant settlement reached by Duke Energy Ohio, Inc. with intervening parties regarding its electric and gas distribution rate cases. The settlement, filed with the Public Utilities Commission of Ohio (PUCO), proposes a net annualized increase of $49 million in electric distribution revenues, translating to an average 2.9% increase for electric customers. Notably, there will be no immediate increase in base rates for gas customers due to ongoing litigation concerning manufactured gas plant (MGP) remediation costs. Duke Energy Ohio intends to recover MGP remediation costs through a separate rider, with the recoverable amount contingent on the outcome of litigation, and has requested $22 million annually for these costs. The settlement is premised on a Return on Equity (ROE) of 9.84% and a 53.3% equity component in its capital structure. Additionally, the company has agreed to an annual donation of $0.7 million to a low-income weatherization and fuel fund. This settlement is subject to final PUCO review and approval.
Key Highlights
- 1Duke Energy Ohio, Inc. reached a settlement agreement with intervening parties on its electric and gas distribution rate cases.
- 2The settlement proposes a net annualized increase of $49 million in electric distribution revenues.
- 3Electric customers can expect an average increase of 2.9% on their total bills.
- 4No increase in base rates for gas customers is proposed due to ongoing MGP remediation cost litigation.
- 5MGP remediation costs will be recovered via a rider, contingent on litigation results, with a requested annual revenue of $22 million.
- 6The settlement is based on a 9.84% Return on Equity (ROE) and a 53.3% equity capital structure.
- 7Duke Energy Ohio has agreed to a $0.7 million annual donation to a low-income weatherization and fuel fund.