Utility Selects Retail Supplier To Supply Customers Ineligible For Choice Service For Three-Year Term, Reports Bids

Duke Energy Ohio has sought approval from the Public Utility Commission of Ohio to enter into an agreement with LE Energy LLC d/b/a Utility Gas and Power LE Energy LLC to provide competitive natural gas supply to Duke Energy Ohio's Percentage of Income Payment Plan (PIPP) customers.

Duke Energy conducts RFPs for suppliers to serve PIPP load; however, since 2014, Duke Energy has not awarded PIPP load to a supplier, and PIPP customers have been served under Duke's Gas Cost Recovery (GCR) service in 2014 as a result of what Duke considered unfavorable pricing in 2014.

In the most recent RFP, suppliers were asked to submit a bid based on an adder to the monthly NYMEX closing price which would be used to determine the rate charged to the PIPP customers, for a one to three year period beginning April 1, 2017.

Duke Energy Ohio reported to PUCO that it received the following bids for the adder:

• AEP Energy (1 Year): +$1.145 per mcf (equivalent to +$0.848 per mmbtu)

• Constellation New Energy (1 Year): +$0.996 per mmbtu

• EDF Energy Services (1 Year): +$0.735 per mmbtu

• SouthStar Energy Services (1, 2, or 3 Year): +$1.100 per mmbtu

• Texican Natural Gas (1, 2, or 3 Year): +$0.760 per mmbtu

• LE Energy LLC d/b/a Utility Gas and Power (1 Year): +$0.620 per mmbtu

• LE Energy LLC d/b/a Utility Gas and Power (2 Year): +$0.580 per mmbtu

• LE Energy LLC d/b/a Utility Gas and Power (3 Year): +$0.560 per mmbtu

"Duke Energy Ohio recommends that the Commission approve the Utility Gas and Power bid for a three year term. Based on an analysis of the past five years of Duke Energy Ohio's GCR rate, this bid will almost certainly result in lower costs for customers in the PIPP program. Whether or not these savings are actually realized will depend on the actual GCR rate experienced over the term," Duke Energy Ohio said