Duke Energy Ohio electric customers will see their bills increase about 3 percent beginning next week as a result of the Public Utilities Commission of Ohio approving a settlement agreement on the company’s distribution rates.

In July 2008, Duke filed an application to increase its electric distribution rates. The company requested an increase in revenues of $86 million. In the agreement signed Wednesday, July 8, in conjunction with the PUCO and Ohio Consumers’ Counsel, Duke will receive a revenue increase of $55.3 million and a rate of return of 8.61 percent.

The agreement will raise residential customers’ total bills by 2.6 percent. The typical monthly cost for a residential customer using 1,000 KWh per month will be $125.05, compared with the current monthly bill of $121.86. The new charges will go into effect Monday, July 13, according to Duke.

In addition to the distribution rate increase, the PUCO has approved a mechanism for the company to recover costs related to last September’s windstorm, but has not approved a specific amount. The company would have to file a separate application to recover storm costs, according to the PUCO.

“The approved agreement will continue to allow us to make investments in the maintenance of our delivery system,” said Julie Janson, president of Duke Energy Ohio. “We have made every effort to cut operating costs by freezing nonunion salaries, renegotiating supplier contracts and cutting employee travel, but this funding was essential for us to continue to deliver electricity safely and reliably.”

Several measures also were included in the agreement to assist low-income customers.

Duke will allow residential customers to pay deposits during a three-month period. In addition, up to 10,000 electric customers at or below 200 percent of the federal poverty level and not participating in the Percentage of Income Payment Plan program will receive a $4 monthly credit to their bill.

Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.