The settlement calls for an annual revenue increase of $18.2 million overall, or 3%, compared with the company’s original application of $34.1 million, or 5.8%. In addition to the staff, interveners joining in the agreement are the City of Cincinnati, Direct Energy, Integrys Energy Services, Interstate Gas Supply, the Kroger Company, Office of Consumers’ Counsel, Ohio Energy Group, Ohio Partners for Affordable Energy, People Working Cooperatively and Stand Energy.
The agreement will permit continued recovery of costs through 2018 for Duke Energy Ohio’s accelerated main replacement program, which is expected to improve the reliability and safety of the natural gas delivery system by replacing cast iron and bare steel mains, some of which were installed more than 130 years ago.
The settlement also allows for recovery of costs of an additional safety program to replace certain types of risers that connect the gas service line to the gas meter.
Sandra Meyer, president of Duke Energy Ohio, said: This application was required to continue the existing funding mechanism for investment in the gas delivery system so that we can improve its reliability and safety. We are about halfway through our accelerated main replacement program and have already seen a 21% reduction in leaks on our system.
