2024 Duke Energy Rate Increase: PUCO Holding Public Hearings
Posted onDuke Energy Rate Increase 2024: What You Need to Know.
In 2024, Duke Energy’s rate increase is expected to impact Cincinnati area customers with higher monthly bills. The proposal includes new distribution fees and riders designed to modernize infrastructure but could cost residential customers an additional $11.27 monthly. PUCO is holding public hearings to discuss these potential changes.
It's time to hop back on the rate increase train. Duke Energy Ohio filed an application for an energy security plan back in April. This makes them the forth company this year seeking to hike electricity rates. This energy security plan does two things. It sets the standard service offer pricing process and adds new riders to cover Duke's distribution costs. The problem is that this plan will likely raise your Ohio energy bills by $135 per year. If not you're not happy with this, then you'll have an opportunity to tell them.
Public Hearings Take Place Soon
Since this is such a large increase, PUCO is holding public hearings in the Duke service area. The first is September 4 at 6 pm, at the MidPointe Library in Middletown, OH. The second is located at Cincinnati City Hall at 6 pm on September 10i. Five PUCO commissioners will be there to listen to your views on this increase. You can also file a public comment, or send a letter directly to the PUCO board:
Public Utilities Commission of Ohio
180 E. Broad St., 11th Floor
Columbus, OH 43215
Is 2024 Duke Energy Rate Increase a Burden On Customers?
According to the Ohio Consumer's Counsel, Duke Energy's ESP plan raises the distribution rates for all residential customers. While bills rise a mere 1.7% the first year, they increase by another 6.19% to 7.87% in three years. For a typical residential consumer, they would have to pay an additional $11.27 per month.
All these hikes come about through the addition of new distribution fees and other riders. For example, the new Infrastructure Modernization Rider. This lets Duke Energy collect costs for two electric vehicle programs from all of its customers. And there's no exception if they own an EV or not. Also, Duke Energy includes charges for energy efficiency programs. Even though we like them, some Ohio consumers do not want to pay for them. So, Ohio no longer has a law the requires such programs nor their funding.
Duke Energy Rate Increase History
Historically, rate increases have been modest but consistent, often rising between 1-3% annually. The 2024 rate hike, however, is more substantial due to expanded costs associated with modernizing Ohio’s electrical grid and adding new services. Customers who want to stay informed can review Duke Energy’s published rate schedules or speak to a representative to better understand their billing breakdown.
Duke Energy Rate Hike: How Does It Impact Monthly Bills?
In 2024, the proposed Duke Energy rate hike could significantly affect monthly bills for residential customers in Ohio. The rate hike includes new distribution charges and additional fees aimed at supporting infrastructure upgrades, such as electric vehicle programs and energy efficiency projects. For the average household, this increase is projected to add around $11.27 per month, or approximately $135 annually. This proposal has generated concern, especially among budget-conscious consumers who already face rising costs in other areas.
While PUCO (Public Utilities Commission of Ohio) is holding public hearings for customers to voice their concerns, it’s essential to understand what drives these increases. Duke Energy highlights the need for grid modernization, which aims to make the energy infrastructure more reliable and adaptable to future demands. However, this rate hike means higher costs for customers, which makes it crucial to explore options for reducing monthly energy bills.
Duke Energy Rate Schedules
Understanding Duke Energy’s rate schedules and their history of rate increases can provide valuable context for current and future costs. Over the years, Duke Energy has made incremental adjustments to its rates, often attributing them to infrastructure improvements and distribution costs. The current rate schedules include various riders, such as the Infrastructure Modernization Rider, which supports upgrades and helps fund electric vehicle initiatives.
Duke Energy Solar Buyback Rate: Will the 2024 Increase Affect Solar Customers?
For customers who have invested in solar energy systems, Duke Energy’s solar buyback rate is an important consideration. This rate determines how much credit customers receive for excess electricity their solar panels send back to the grid. The proposed 2024 rate increase does not specifically target the solar buyback rate, but any adjustments to distribution charges and fees could indirectly affect the net savings solar customers experience.
While solar energy customers are still eligible to receive buyback credits, the broader rate increase may reduce some of the savings associated with solar power. Customers interested in solar energy should review their bills closely and speak with Duke Energy to understand how these rate changes may affect their total energy costs. It’s also a good idea to explore additional incentives or rebates that can help offset any cost increases due to these new rate changes.
Find A Cheaper Electricity Rate
It's important for Duke Energy consumers to speak their minds at forums like the ones PUCO is holding. After all, Cincinnati area energy customers already saw a $23 million rate increase start in 2024. Plus, PUCO will consider public comments during in their approval hearings.
No one who watches the the energy industry disagrees that Ohio's local grids need upgrading and expanding. However, as the OCC points out in its Duke Energy factsheet, Ohio utility ESP's "have become a common tool for Ohio’s electric companies to collect more money from consumers outside of a standard distribution rate case."
Another Rate Hike Coming?
With more people needing Ohio electricity, the quick answer is "probably". That means everyday consumers need to find ways to cut their monthly electric bills. So, it’s important to shop low rates now and lower your monthly bills. The best way to do that is to lock in a low rate that beats Duke Energy’s price to compare. Also be sure to watch for ways to cut high electricity bills. You can find more information on saving on your electricity and other rate increases at www.ohenergyratings.com
FAQ
1. What is the Duke Energy rate hike for 2024?
The 2024 Duke Energy rate hike is a proposed increase that could raise the average Ohio residential customer’s annual electricity costs by around $135. This increase is primarily due to new distribution charges and additional fees to fund infrastructure improvements, such as electric vehicle support and energy efficiency programs.
2. How will the Duke Energy rate increase affect my monthly bill?
For most residential customers, the rate increase will add approximately $11.27 to their monthly bill. This increase covers various new charges intended to support grid modernization and other infrastructure needs.
3. What are Duke Energy’s rate schedules?
Duke Energy’s rate schedules outline the costs customers pay for different types of services, including standard electricity charges and additional riders, like those for infrastructure modernization. These schedules are periodically updated to reflect new costs associated with maintaining and upgrading the grid.
4. Does the Duke Energy rate increase impact the solar buyback rate?
The 2024 rate increase doesn’t directly target the solar buyback rate, which is the credit solar customers receive for excess energy they produce. However, higher distribution
5. Can customers do anything about the Duke Energy rate hike?
Yes, customers can attend PUCO’s public hearings to express their views on the rate hike. Alternatively, they can submit comments directly to PUCO. Additionally, customers can explore alternative energy suppliers to find more competitive rates and reduce their monthly expenses.
6. Are there ways to manage increased electricity costs due to the Duke Energy rate hike?
To manage increased costs, consider comparing rates from different electricity providers and locking in lower rates if possible. Simple energy-saving practices at home, such as using energy-efficient appliances and monitoring peak usage times, can also help offset some of the increased costs.
