PUCO And Utilities Scrum Over Rates, Subsidies
Posted on If you’re thinking about sticking with the Standard Service Offer (SSO) from one of the state’s 6 utilities this winter, you ought to reconsider. Currently, Duke Energy is petitioning PUCO for a new rate hike to go with it’s SSO. Even worse is the big scrummage forming up over a proposed rule by the Department of Energy pitting generating companies against market regulators that could throw a wrench into the price of electricity in Ohio. So, let’s get a closer look at each before the mud really starts flying. Duke Energy PUCO allows utilities to develop their Standard Service Offers (SSO) through either an electric security plan (ESP) or market rate offer (MRO). Duke wants the increase as part of the ESP filing it put before the commission in June. The new ESP is designed to secure all the electrical supply needed for Duke’s SSO customers. The proposed rate increase include four riders:- The Regulatory Mandates Rider would recover the operations and maintenance expenses from federal, state or Commission requirements not covered in existing rates or charges.
- The Incentive Rate Making Mechanism Rider would provide a credit or charge to customers based on an earnings range and the company’s actual earnings.
- The Power Forward Rider would include costs related to the PUCO’s PowerForward grid modernization initiative.
- The Electric Service Reliability Rider would recover incremental vegetation management (tree trimming), operations and maintenance expenses since Jan. 1, 2017.