Large consumers of Duke power told the PUCO that a five-year plan to convert from current service rates to market-based prices is needed to protect consumers from possible price surges as the transition takes place. Duke proposed a two-year rate “blending period” before going to market rates beginning in 2014.
Duke’s current rate plan expires on Dec. 31, 2011. The company proposed to conduct a competitive bidding process to procure electric power supplies for customers for the period starting Jan. 1, 2012. Customers could choose to buy power from Duke or competing electricity suppliers.
The PUCO said it found shortcomings that Duke must correct in any future filing to meet state requirements for an open and competitive bidding process, and to consider alternatives for wholesale procurement of electricity.
Duke was disappointed by the PUCO’s ruling, spokeswoman Sally Thelen said. The company will review the ruling and determine how to proceed, she said.
A competitive bid for electricity could save Duke customers money, said lawyers for the Ohio Consumers’ Counsel, the state advocate for residential customers of Ohio utilities.
Duke currently has the highest electric rates in Ohio and a market rate offer can bring those rates down for customers, Consumers’ Counsel Janine Migden-Ostrander said.
Duke, based in Cincinnati, serves about 700,000 electric and natural gas customers in a service territory stretching from the Springboro area south to the Ohio River.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.
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