Under the proposed ESP, generation remains unbundled and separate from transmission and distribution service, the company said.
The plan further unbundles generation service by separating capacity (physical assets) from energy (the actual output).
The company said the plan is structured to include a market-based or competitive element, while also affording customers with the stable prices and reliable supply, on which they can depend.
The plan also provides for a unique mechanism in which net profits from the sale of energy and ancillary services from the dedicated Duke Energy Ohio power plants would be shared between customers and the company, 80% and 20%, respectively.
If approved by regulators, Duke Energy Ohio residential customers who use about 1,000kWh a month will see their bill increase nearly 3%, or roughly $4 per month, beginning 1 January 2012.
