CINCINNATI, May 28, 2020 /PRNewswire/ -- Duke Energy Ohio will reduce its residential power bills by about 3.6% beginning June 1. As a result, typical residential customers who use 1,000 kilowatt-hours of electricity a month and purchase electric supply from Duke Energy Ohio will pay about $114 per month beginning with their June bills. That's down about $4.24 from May.
"We work each day to deliver safe and reliable energy to our customers at the best possible price," said Amy Spiller, president of Duke Energy's utility operations in Ohio and Kentucky. "Our customers' bills continue to be among the lowest in Ohio and well below the national average."
The driver for this upcoming reduction is the price Duke Energy Ohio pays to acquire electricity for its customers who have chosen not to switch to a third-party energy company for their electricity supply. Duke Energy Ohio uses a competitive auction process to secure electricity for these customers. As a whole, recent winning bids have been lower than past bids – leading to lower charges for the electric supply portion of monthly power bills.
The company makes no profit on the energy supply portion of customers' bills. The cost of energy supply that Duke Energy Ohio procures is passed on directly to its customers. Electric supply accounts for about 48% of these customers' monthly bills. The remainder is for electric delivery or, in other words, for Duke Energy Ohio to deliver the electricity to homes, maintain poles and wires, improve infrastructure, handle billing and payment, and more.
Duke Energy Ohio delivers electricity to more than 650,000 homes across southwest Ohio. About 43.5% of these customers rely on Duke Energy Ohio to acquire electric supply on their behalf and are the ones who will see lower rates beginning in June. The remaining customers receive electric supply from third-party energy companies, so their bills will not be impacted by the upcoming reduction.
Duke Energy Ohio/Kentucky Duke Energy Ohio/Kentucky, a subsidiary of Duke Energy, provides electric service to about 870,000 residential, commercial and industrial customers in a 3,000-square-mile service area, and natural gas service to approximately 542,000 customers.
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of the largest energy holding companies in the U.S. It employs 30,000 people and has an electric generating capacity of 51,000 megawatts through its regulated utilities, and 3,000 megawatts through its nonregulated Duke Energy Renewables unit.
Duke Energy is transforming its customers' experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit's regulated utilities serve approximately 7.7 million retail electric customers in six states – North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to more than 1.6 million customers in five states – North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.
Duke Energy was named to Fortune's 2020 "World's Most Admired Companies" list, and Forbes' 2019 "America's Best Employers" list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.
Contact: Lee Freedman Twitter: @DE_LeeF 24-Hour Media Line: 800.559.3853