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'It is not fair' | Why consumer groups are challenging Duke Energy's new rate hike request

Duke claims hike needed for power line upgrades
Power lines
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CINCINNATI — Duke Energy is asking Ohio regulators to raise the delivery charge on electric bills by 4.5%.

It's a move that the company said would add about $8 to the average monthly bill, for homes that use 1,000 kilowatts of electricity each month.

While it sounds like a small amount, a number of community and consumer groups are fighting back, saying it will hit lower-income families the hardest.

In addition, it is just the latest in a series of rate hikes — and increased fees — that have been making bills bigger and bigger for many customers.

George Makris is among the Southwest Ohio customers who have contacted WCPO, questioning their rising electric bills.

"This bill is the highest we've ever had," Makris said.

The delivery charge, sometimes called a distribution fee, covers the cost of maintaining transmission lines and infrastructure. It is separate from the generation fee, which is based on how much electricity a customer uses.

Unlike generation charges, customers cannot shop around for a different delivery fee provider to save money.

Watch as community activists question the fairness of another Duke rate hike:

Citizens groups call Duke rate hike request unfair

Reasons for the rate hike request

Duke Energy spokesperson Matt Martin told me the proposed increase is necessary to fund ongoing grid improvements, including replacing old wooden utility poles with metal ones, upgrading the grid and reducing power outages.

"Since our last rate hike, back in 2021, we have made a number of capital improvements in the grid, to ensure safe, reliable energy to our Southwest Ohio customers, so investing in self healing technology to shorten outage times or eliminate outages all together," Martin said.

But several community groups and the Ohio Consumers' Counsel have filed objections to the request.

Woodlawn City Council member and community activist Michelle Starr said the flat delivery fee structure is unfair to lower-income residents, because the fixed charges represent a much higher percentage of their total bills compared to customers in larger homes.

"Duke applies a fixed flat rate to every customer, and it is not fair to those who are already struggling to pay," Starr said.

Starr is calling on regulators to consider a usage-based model for delivery fees.

"I am asking them to consider fairer billing," Starr said.

Erica Black-Johnson, of the group Communities United for Action, said the complexity of Duke Energy bills is a broader problem for many families.

"There's so much on your Duke bill," Black-Johnson said. "The problem is, very few of us, if any of us, know what all of that other stuff is. We're just flabbergasted, like why?"

The Ohio Public Utilities Commission of Ohio still must decide whether to approve the rate hike. If approved, the increase would not take effect until next year.

In the meantime, your best bet for the coming summer is to have your AC serviced, and turn your thermostat up a few degrees, so you don't waste your money.
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