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Utility Seeks To Recover More Costs From Rider That Has Trigger Which Makes It Nonbypassable

April 2, 2024

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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As part of its newly proposed electric security plan (covered extensively yesterday in our story here), Duke Energy Ohio is seeking to recover additional costs through Rider SCR (Supplier Cost Reconciliation), a bypassable rider which includes a trigger under which the rider may become nonbypassable

Duke proposes to amend Rider SCR to allow for the recovery of future Public Utility Regulatory Policies Act (PURPA)-related payments to Cogeneration and Qualifying Facilities (QFs) pursuant to the Company’s Cogeneration tariff

Duke also also proposes to adjust Rider SCR for any reconciliation of the proposed capacity proxy price (CPP) [discussed in yesterday's story] to actuals

Duke stated, "If the CPP is used, any true-ups between the CPP and actual capacity prices will be reconciled in Rider SCR."

As noted, Rider SCR typically does not apply to customers taking generation service from a Competitive Retail Electric Service (CRES) provider except as provided in a NON-BYPASSABLE PROVISION section of the tariff

The NON-BYPASSABLE PROVISION provides that, subject to PUCO approval, Rider SCR becomes applicable to all retail jurisdictional customers in Duke's electric service territory including those customers taking generation service from a CRES provider under the following circumstance: The revenue balance within the SCR account becomes equal to or greater than ten percent of the Company’s total actual SSO revenues collected for the most recent twelve month period under Riders RE, RC and AER-R. The total actual SSO revenue will be determined from data covering the most recent quarter for which it is available.

The tariff provides that Duke Energy Ohio shall apply to PUCO for confirmation that the Company should modify Rider SCR such that it becomes nonbypassable regardless as to whether or not the balance in the Rider results from over- or under-recovery.

If made nonbypassable, for customers of CRES providers, Rider SCR will become bypassable again when, at the time of the quarterly filing, the Rider balance of over- or under-recovery falls below the ten percent threshold.

Case 24-0278-EL-SSO

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