Duke Energy Ohio Files Electric Security Plan

CINCINNATI, July 31 /PRNewswire-FirstCall/ -- Duke Energy Ohio today is
filing its electric security plan (ESP) with the Public Utilities Commission
of Ohio as required under the new Ohio energy law, which takes effect today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040414/DUKEENERGYLOGO )
The three-year plan has four primary goals:

-- Provide reliable electric generation service
-- Maintain competitive, predictable pricing
-- Increase renewable energy resources and energy efficiency
-- Support the community through economic development and low income
assistance

"We have developed a balanced plan that provides new options for
customers, while continuing to dedicate our efficient, legacy generating
assets to our Ohio retail customers," said Sandra Meyer, president of Duke
Energy Ohio. "As energy prices increase because of market forces, our ESP will
protect customers from extreme price volatility and provide a reasonable
return to our investors."
As part of its supply plan supporting the ESP's goals to provide reliable
sources of electricity at reasonable prices, Duke Energy Ohio has recently
issued requests for proposals for renewable energy supplies and long-term
traditional generating capacity. These requests will add fuel diversity,
comply with the renewable portfolio standard under the new energy law and
balance available supply with customer demand for the three-year period of the
ESP and beyond.
A new Economic Competitiveness Fund would commit $1 million toward public
green infrastructure projects, such as mass transit, and would provide
opportunities to support regional job creation and retention activities. The
ESP also includes an integrated smart grid proposal that will improve the
delivery system and enable increased energy efficiency to meet the new law's
requirements.
To support customer choice, the ESP proposes an electronic bulletin board
that will give customers the opportunity to voluntarily choose a market price
from Duke Energy Ohio and other competitive suppliers.
The initial ESP request amounts to an increase of 6.2 percent in total
annual electric revenues. For a typical residential customer using 1,000
kilowatt-hours per month, the net generation price impact under the ESP would
increase monthly bills from $110.89 to $115.70, or 4.3 percent, at the
beginning of 2009. This comparison does not include the impact of Duke Energy
Ohio's recent delivery rate filing of approximately 5 percent for a typical
residential customer that is expected to be effective in second quarter 2009.
"We recognize the impact of higher rates on customers whose finances are
already stretched by higher gasoline and food prices, so we are making
proposals that will help address the increases," said Meyer.
The company is proposing a new pilot program designed to assist low-income
customers by providing rate discounts totaling $1.5 million over the next
three years to those meeting income guidelines. The proposal also expands
energy efficiency programs and low-income weatherization, increasing funding
for weatherization to $3 million over the next three years.
Duke Energy's Ohio operations deliver safe, reliable and competitively
priced electricity to approximately 687,000 electric customers and natural gas
service to approximately 424,000 customers.
Duke Energy (NYSE: DUK), one of the largest electric power companies in
the United States, supplies and delivers electricity to approximately 4
million U.S. customers in its regulated jurisdictions. The company has
approximately 35,000 megawatts of electric generating capacity in the Midwest
and the Carolinas, and natural gas distribution services in Ohio and Kentucky.
In addition, Duke Energy has more than 4,000 megawatts of electric generation
in Latin America, and is a joint-venture partner in a U.S. real estate
company.
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company
traded on the New York Stock Exchange under the symbol DUK. More information
about the company is available on the Internet at: www.duke-energy.com .
CONTACT: Steve Brash
Phone: 513-419-5966
24-Hour: 704-382-8333

SOURCE Duke Energy

Steve Brash of Duke Energy, +1-513-419-5966, 24-Hour: +1-704-382-8333