Choice State to Allow Utility to Offer Additional Non-regulated Services to Customers

The Public Utilities Commission of Ohio approved an amendment to Duke Energy Ohio's corporate separation plan and tariff to grant Duke flexibility to offer, "additional electric-related services to residential and nonresidential customers."

PUCO accepted Staff's recommendation that, as part of offering any such services, Duke is required to obtain a signed work order from the customer stating their understanding that the products and services are unregulated and offered by other vendors.

PUCO further stressed that, "Duke's commitment to ensure that these special customer services will be provided at a rate negotiated with the customer, but no less than Duke's fully-allocated cost, is of paramount importance. While we find that Duke's proposal in this regard is reasonable and should be approved, we emphasize that none of the costs associated with the services and products may be passed on by Duke to the regulated utility's customers. Furthermore, as a condition to our approval of this provision of the plan, we direct Duke to establish the necessary agreements and processes to guarantee that, upon the request of the Commission or Staff, Duke has access to the information necessary to prove that no costs associated with these products or services are being home by the regulated utility's customers."

The approval granted by PUCO is broad, and not service specific. While Duke provided certain statements in applications regarding the types of services that are to be potentially offered, it was not clear if this was an exhaustive list of Duke's intended offerings.

In its application, Duke had said that in order to, "provide additional consumer options and the ability to ensure an expeditious return from service interruptions, among other benefits," it was seeking, "the flexibility to offer additional electric-related services to customers, as has been allowed elsewhere in the state since the beginning of deregulation."

"Such services will allow additional service options for residential and non-residential customers and will help to ensure customers the ability for an expeditious return from service interruptions, among other benefits," Duke said.

Additionally, such services may include, "[u]pon customer request, Duke Energy Ohio may use contractors or employees to provide other utility-related services, programs, maintenance, and repairs related to customer-owned property, equipment, and facilities."

"In addition. Duke Energy Ohio may provide products and services other than tariffed retail electric service in an effort to advance the State's interests in energy efficiency and peak demand reduction and to comply with the benchmarks set forth in R.C. 4928.66. These programs give the Company the opportunity to serve customers more completely and to assist in meeting statutory requirements," Duke said.