Settlement Addresses Proposed Elimination Of Surcredit To Shopping Customers (Back-out Credit) -- EnergyChoiceMatters.com

Settlement Addresses Proposed Elimination Of Surcredit To Shopping Customers (Back-out Credit)

Stipulation Would Eliminate Switching Fee

April 28, 2023

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Reporting by Paul Ring • ring@energychoicematters.com

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Several parties have filed a stipulation in Duke Energy Ohio's current base rate case

Signatory parties include Duke, Staff of the Public Utilities Commission of Ohio, Ohio Energy Group, the Retail Energy Supply Association, Interstate Gas Supply, and People Working Cooperatively. The Ohio Consumers' Counsel does not appear as a signatory party

Under the settlement, Duke's Rider GSR shall continue. Rider GSR, Gas Surcredit Rider, provides a credit to shopping customers for costs related to the amount of the assessments for the Public Utilities Commission of Ohio and the Office of Consumers’ Counsel that is attributable to commodity sales service included in distribution rates (similar to a back-out credit or a shopping credit).

As previously reported, PUCO Staff had proposed eliminating Rider GSR

Under the stipulation, the GSR will be a credit of $0.000992 per ccf to Transportation Customers served on Rates RFT, RFT-LI, FT-S, FT-L, and IT until approval of the Company’s next rate case.

The current Rider GSR is $0.0012479 per 100 cubic feet. Duke had proposed lowering Rider GSR to $0002953 per 100 cubic feet

The stipulation also includes what it terms competitive retail natural gas supplier and competitive market enhancements

Among these is that the settlement provides that Duke Energy Ohio shall eliminate its $4.00 switching fee from Rates RFT (Sheet No. 33, pg. 2), RFTLI (Sheet No. 36, pg. 2), FT-L (Sheet No. 37, pg. 2), and FT-S (Sheet No. 52, pg. 2).

Duke Energy Ohio shall also withdraw (1) its proposed changes to its balancing language in Sheet Nos. 37, 44, 46, 50, 51, 52 and 58, regarding the additional requirements to deliver by city gate; (2) withdraw its proposed addition of ability to procure natural gas in Sheet No. 44; and (3) withdraw its proposed TSQ penalty from Rate FRAS, Sheet No. 44). In addition, the Company will withdraw its application in Case No. 21-794-GA-ATA, which seeks the same changes.

Under the stipulation, Duke Energy Ohio shall add the following language to the proposed Rate IMBS (Sheet No. 58) and Rate FRAS (Sheet No. 44): "An OFO overrun/underrun penalty of $15 will be charged per dth for unauthorized overrun/underrun resulting from the pool operator’s failure to comply with the OFO. In its sole reasonable discretion, the Company may waive the assessment of part or all of such penalty for all pool operators when the unauthorized overruns/underruns are a result of: (1) an interstate or intrastate pipeline Force Majeure documented event or (2) inaccuracy, delay, or absence of the Company’s measurement for a Pool Operator’s customer(s). Requests for waivers must be submitted in writing to Company and be signed by an authorized representative of Pool Operator. Company will retain records of waiver requests received and their dispositions for three years."

Duke Energy Ohio also agrees to update Rate FRAS (Sheet No. 44, pg. 13) and Rate SAC (Sheet No. 45, page 1) to increase the number of free rate codes per supplier from its current limit of 25 to a limit of 100. Duke Energy Ohio agrees to update Rate FRAS (Sheet No. 44, pg. 13) to increase the total rate code limit for suppliers from 80 codes to 200.

Duke Energy Ohio agrees it will reduce the following fees in Rate SAC, Sheet No. 45:

i. Customer Information List shall be reduced from $150 to $50;
ii. Govt Aggregator Eligible Customer List (Zip Code) from $400 to $135;
iii. Govt Aggregator Eligible Customer list (Boundaries) from $1,200 to $400;

Duke agrees that, within 14 days of the Commission opening the new Supplier Consolidated Billing docket requested by the pending joint motion in Case No. 19-1750-EL-RDR, Duke will file a letter in that new docket stating that it has no objection to Competitive Retail Natural Gas Suppliers (CRNGS) participating in the Supplier Consolidated Billing collaborative, subject to the same procedural requirements, limitations, etc., as other participants.

Duke agrees it will perform a study evaluating the effect of the modified straight-fixed variable rate design on IT/FT-L customers with firm usage of 5 mcf or less per day and submit this study as part of the Company’s next application to adjust its natural gas base rates.

Regarding another matter, the settlement provides that the Signatory Parties agree that Staff’s recommended change to the definition of Mercantile Customer in PUCO Gas No. 18, Sheet No. 44, and Addendum Sheet No. 4, page 1 of 12 is not necessary and should not be made. As previously reported, it appeared Staff was seeking to simply change the units in which the mercantile customer definition was expressed, but due to an ostensible scrivener's error, Staff's language appeared to seek a change in the mercantile size cutoff ((see discussion here)

Case No. 22-509-GA-ATA et. al.

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