Duke Energy Ohio Generation Rates to Fall Drastically January 1

An auction for default service supplies at Duke Energy Ohio produced lower retail generation rates, as expected, for the period beginning in 2012.

Specifically, the auction resulted in a blended generation price of $52.68 per megawatt-hour (MWh) for January 2012 through May 2013.

This rate is below all current competitive offers for residential customers publicly posted on PUCO's apples to apples chart. While it is believed that the blended auction price quoted by PUCO in a news release is the retail rate (adjusted for losses, etc.), it is not believed that it includes the bypassable alternative energy portfolio charge, which is not determined by the default service auctions (Rider AER-R), or the bypassable reconciliation charge for any pre-2012 generation costs (Rider RECON).

The lowest competitive offer from a retail supplier at Duke Energy Ohio is about 5.8 cents per kWh, and most offers exceed 6 cents per kWh.

Duke Energy's current price to compare, while varying based on usage and heating source, is about 9 cents per kWh.

The bended generation rate of $52.68 per megawatt hour resulted form the following winning bids:

- Six suppliers submitted winning bids that resulted in a clearing price of $49.72 per MWh for the January 2012 through May 2013 delivery period.

- Seven suppliers submitted winning bids that resulted in a clearing price of $51.10 per MWh for the January 2012 through May 2014 delivery period.

- Four suppliers submitted winning bids for a clearing price of $57.08 per MWh for the January 2012 through May 2015 delivery period.