PUCO approves an electric rate increase for Duke Energy Ohio

COLUMBUS, OHIO (July 8, 2009) – The Public Utilities Commission of Ohio (PUCO) today adopted a stipulation that allows Duke Energy Ohio to increase its rates for electric distribution service.

In its application, Duke requested an increase in revenues of $86 million. The stipulation adopted today by the Commission and signed by Duke, PUCO staff, the Ohio Consumers’ Counsel and others provides Duke with a revenue increase of $55.3 million and a rate of return of 8.61 percent.

The increase in Duke’s electric distribution rates represents an approximate average increase to a residential customer’s total bill of 2.6 percent, based on an average residential customer using 1,000 kWh per month. Duke’s monthly residential service customer charge will be $5.50 per bill.

Under the terms of the agreement, Duke will allow residential customers to pay deposits over a three-month period. Duke will also assist low-income customers through the establishment of new programs. Up to 10,000 electric customers who are at or below 200 percent of the federal poverty level and not participating in the Percentage of Income Payment Plan program will receive a $4 monthly credit to their bill. Duke will also provide funding for a program that focuses on energy efficiency for eligible low-income residential customers.

On July 25, 2008, Duke filed an application to increase its electric distribution rates. The PUCO held one local public hearing in Union Township and two local public hearings in Cincinnati with a total of 51 witnesses providing testimony.

The new rates will become effective for Duke when the company files tariffs consistent with today’s Commission opinion and order. Today’s Commission opinion and order is available at www.PUCO.ohio.gov. Click on the link to Docketing Information System and enter the case number 08-709-EL-AIR.

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08-709-EL-AIR

08-710-EL-ATA

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