* Enables company to continue moving toward low- or zero-carbon generation resources
* Recommends new options for customers interested in electric vehicles and community-based solar
* Builds upon proven work to reduce the frequency and duration of power outages and support load growth
CINCINNATI -- As a result of the company's ongoing investments to facilitate a clean, secure energy future, strengthen the electric grid, reduce power outages and enhance value to the company's nearly 150,000 electric customers in Northern Kentucky, Duke Energy Kentucky today filed a request with the Kentucky Public Service Commission (PSC) to perform a public review of the company's electric distribution rates and approve a rate adjustment.
Overall, the proposed adjustment amounts to an approximate $75.2 million increase, or an overall increase in electric rates of 17.8%. If approved by the PSC next year, the monthly electric bill for a typical residential customer using 1,000 kilowatt-hours per month would increase by approximately $25 per month. Nonresidential customers will see bill impacts of varying degrees.
"We're working hard every day to control our own costs and keep rates competitive as we balance smart investments to strengthen the electric grid with the tough economic climate we are all experiencing," said Amy Spiller, president of Duke Energy Ohio/Kentucky. "We know how vital reliable electricity is to our customers, communities and region, and that energy is a significant monthly expense for our customers. We remain committed to helping our customers who are experiencing financial hardship."
Clean energy transition, increase in net rate base main drivers of request
As Duke Energy Kentucky continues to advance an orderly transition toward a reliable, clean energy future, the company is taking steps to reduce, and eventually eliminate, its reliance on coal-fired generation and move toward low- or zero-carbon generation resources.
"A growing segment of our commercial customers have become increasingly clear on this topic," said Spiller. "They expect us to invest in cleaner power and are making economic growth decisions based on those expectations."
With the energy transition, the company is proposing to adjust the depreciation rates for the East Bend and Woodsdale Generating Stations, based on their likely remaining service lives.
Another primary driver is the return on and of the company's rate base. Since Duke Energy Kentucky's last electric rate case was approved in April 2020, the company has made more than $300 million in investments to strengthen the electricity generation and delivery systems across Northern Kentucky. These data-driven investments were designed to improve the system's reliability and resiliency for customers and support load growth.
New customer benefits proposed
In today's filing, Duke Energy Kentucky outlines various proposals to provide customers more value, choices and convenience when it comes to their electric service and personal sustainability goals. These include:
Two electric vehicle (EV) charging programs that include new tariffs for EV charging infrastructure and a make-ready credit for customers wishing to install a new EV charging station.
A new, voluntary community-based solar program called Clean Energy Connection for customers wishing to invest in renewable energy resources to meet sustainability goals.
Mitigating the effect of fluctuating fuel costs through a mechanism to reduce volatility and offer customers more rate predictability.
Helping customers in need
With many individuals and families experiencing financial hardship and struggling to pay their everyday expenses, Duke Energy Kentucky continues to support its customers, connect them with available assistance and offer tools and programs - including flexible payment plans and budget billing - to help manage their energy bills.
Leveraging its many partnerships with local nonprofits and other organizations across Greater Cincinnati, the company continues to reach out to customers with information about utility assistance administered by state agencies. Additional resources can be found here: duke-energy.com/help4you.
Additional information and next steps
Any rate changes approved by the PSC would be reflected in a customer's base rates, which is only one component of a Duke Energy Kentucky customer's electric bill. In the coming months, the PSC will thoroughly review the rate case application, host public meetings in Northern Kentucky to discuss the request and conduct a formal evidentiary hearing in Frankfort. The company estimates that the PSC will rule on the company's request by summer 2023, with rate adjustments taking effect around July 1, 2023.
Additional information about Duke Energy Kentucky's request for a regulatory review of its electric distribution rates can be found at duke-energy.com/KYrates.
Duke Energy Ohio/Kentucky
Duke Energy Ohio/Kentucky, a subsidiary of Duke Energy, provides electric service to 880,000 residential, commercial and industrial customers in a 3,000-square-mile service area, and natural gas service to 550,000 customers in a 2,650-square-mile service area, in Ohio and Kentucky.
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 28,000 people.
Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.
Duke Energy was named to Fortune's 2022 "World's Most Admired Companies" list and Forbes' "World's Best Employers" list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.
Contact: Casey Kroger
24-Hour Media Line: 800.559.3853
@DE_CaseyK
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