Many Cincinnati-area residents are experiencing sticker shock when opening their Duke Energy bills this month, but the recent cold weather isn't the only culprit behind the higher costs.
While December and January's frigid temperatures have led to increased energy usage, customers are discovering that delivery charges — fees that many assumed were fixed — are also contributing significantly to their monthly bills.
Kathy Develius of Maineville said her Duke Energy bill "tripled in one month."
While she expected higher generation charges due to increased energy use, she was surprised to see her delivery charge jump as well.
"So I called Duke and they explained that rider was for maintenance of the electric lines and so forth," Develius said.
A Clermont County resident named Michael told us he received a $300 bill, with $171 attributed to delivery fees.
"It was under the fixed fees, not the usage-based fees, that's not right," he said.
WATCH: Duke customers complain of soaring bills this year:
Breaking down your Duke bill
Duke Energy bills consist of two main components:
- The cost of supplying gas and electricity
- The cost of delivering it through pipes and wires
There are also taxes and other "riders," but that typically accounts for just a small portion of the bill.
The supply side changes each month depending on how much energy you used, and also who your provider is (Ohio allows energy choice).
However, according to the Ohio Public Utilities Commission, what people assume to be fixed delivery charges also increase with higher usage — which is contrary to what many customers believe.
PUCO spokesman Matt Schilling told us "base distribution rates are also a usage-based charge," since you are using Duke's wires and pipelines more during cold months.
Grid upgrades and new transmission lines for data centers and new subdivisions have also raised delivery fees in recent years, though Duke Energy spokesperson Matt Martin said this has only a small impact on bills.
"At Duke Energy we work hard to keep costs as low as possible for our customers, regardless of changes in AI and data centers we are seeing pop up," Martin said.
Customers looking to reduce their bills have several options.
In Ohio, residents can search for alternate energy suppliers through the PUCO's Apples to Apples website, which can help save on generation charges.
Additionally, sealing drafts and lowering thermostats can help reduce overall usage, even though these measures won't affect delivery fees.
That way you don't waste your money.
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