Utility To Include Default Service Costs In Nonbypassable Rider

As part of Duke Energy Ohio's newly filed electric rate case in Ohio, Duke Energy Ohio would include certain costs related to the regulatory administration of default service in a new nonbypassable regulatory mandates rider

Duke Energy Ohio noted that R.C. 4928.141 requires Ohio's EDUs to provide a standard service offer (SSO) to their retail customers through either an ESP or a market rate offer.

"Whichever path the Company chooses, there are unavoidable regulatory costs incurred by the Company to provide this SSO, including, but not limited to, legal fees and consulting fees," Duke Energy Ohio said in testimony

"The Company's SSO is a benefit to all customers whether they shop or not, as the very definition of an SSO is that is [sic] a service provided by a distribution utility that is available to all customers. Customers are free to take SSO service or to shop with CRES providers but, in either case, Duke Energy Ohio must be ready to provide the SSO service," Duke Energy Ohio said

"Certain CRES providers have debated in other SSO proceedings whether the EDUs' costs to provide SSO service should be borne by all customers or just by those who actually take SSO service but it is important to note a significant difference between the obligations of CRES providers and the EDUs: CRES providers voluntarily provide service to retail customers; they can choose to offer generation service to customers under whatever terms they choose or they can refuse to provide generation service to any customers. No customer can demand that a CRES provider offer them service. EDUs, on the other hand, do not have the right to deny service to any retail customer. I am advised by counsel that, under Ohio law, Duke Energy Ohio is legally required to make its SSO service available to all customers requesting such service. Unlike the CRES providers, Duke Energy Ohio and the other Ohio EDUs do not have the freedom to choose whom they serve. For this reason, all customers have the benefit of have Duke Energy Ohio's SSO service as an option; therefore, the costs incurred by the Company to provide for this service should be recovered from all retail customers," a witness for Duke Energy Ohio testified