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The Public Utility Commission of Ohio (PUCO) approved Duke’s application to award to Utility Gas & Power service to PIPP customers for the period of April 2025 to March 2028 at the monthly NYMEX closing price plus Utility Gas & Power’s bid adder of $1.69 per MMBtu, for the 3-year term.

The Ohio Commission issues a Finding & Order that the Commission approves the application of Duke Energy Ohio, Inc. for authority to select LE Energy LLC d/b/a Utility Gas and Power as an alternate natural gas supplier for customers in the percentage of income payment plan program, subject to Staff’s recommendations. 

{¶ 5} “On February 14, 2025, in the above-captioned case, Duke filed an application for approval of the selection of an alternate natural gas supplier for the PIPP customer class. Duke explains that, as a component of its natural gas choice program for residential and small commercial customers, Duke has developed and implemented a process to include customers that might otherwise be excluded from experiencing the benefits of a competitive natural gas market. In re The Cincinnati Gas & Elec. Co., Case No. 01-2202-GA-UNC, Entry (Sept. 13, 2001). In accordance with this process, on January 27, 2025, Duke sent notification by electronic mail to 271 suppliers active in its transportation service programs, seeking proposals for the delivery of natural gas to the Company on behalf of its PIPP customers for a one- to three-year period beginning April 1, 2025. According to Duke, suppliers were asked to submit a bid based on an adder to the monthly New York Mercantile Exchange closing price, which would be used to determine the rate charged to PIPP customers. Duke asserts that it received three bids from one supplier, LE Energy LLC d/b/a Utility Gas and Power (UGP). Duke further notes that the three-year bid from UGP offered an adder of $1.69 per one million British thermal units, which was the lowest of the bids. Duke explains that, based on analysis of the past five years of its gas cost recovery (GCR) rate, UGP’s bid will almost certainly result in lower costs for customers in the PIPP program. Therefore, Duke’s application requests approval of the selection of UGP as the natural gas supplier for the PIPP customer class.”

{¶ 7} “On March 7, 2025, Staff filed its review and recommendations. Staff recommends approval of the Company’s request to select UGP as an alternate natural gas supplier for the PIPP customer class. Staff also makes other recommendations to reverse the decline in recent years of bidder response to the PIPP RFP. Specifically, Staff recommends that the Commission: a. direct Duke to communicate, in the form of a survey, with natural gas suppliers in its service territory to solicit feedback to better understand why suppliers may choose not to submit a bid and whether any modifications to the PIPP RFP process could result in greater bidder participation; b. direct Duke, in future solicitations, to electronically mail PIPP RFP information to active suppliers at least 30 days prior to the due date for bids; and, c. direct Duke, in future alternative supplier PIPP applications, to provide the Commission with only the name of the recommended bidder, the price, and the length of the term. Currently, the application contains the unredacted bids Duke received in response to its PIPP RFP, including the name of the supplier, the bid price, and the term associated with that supplier’s bid. This change would be consistent with electric PIPP auctions. 1 Staff can request any additional bid information it feels is necessary.” 

{¶ 8} “The Commission finds that the selection of UGP as the alternate natural gas supplier for Duke’s PIPP customers should be approved and that the Company should be authorized to enter into an agreement with UGP to serve in that capacity. The Commission also finds that Duke’s request for waiver of the GCR provisions in Ohio Adm.Code Chapter 4901:1-14 should be granted to the extent necessary to implement the agreement with UGP. Duke should appropriately record the gas costs and revenues attributable to the PIPP customer class.

{¶ 9} “Additionally, the Commission finds that Staff’s recommendations for increasing bidder participation are reasonable and should be approved. As stated in Paragraph 7, Duke should issue a survey to natural gas suppliers in its service territory to solicit feedback on why suppliers may choose not to submit a bid and whether any modifications to the PIPP RFP process could result in greater bidder participation. For future RFPs, Duke should electronically mail PIPP RFP information to active suppliers at least 30 days prior to the due date for bids. In future PIPP alternative supplier applications, Duke should provide the Commission with only the name of the recommended bidder, the price, and the length of the term.”

Finding & Order (03/19/2025)
25-139-GA-UNC (02/14/2025)
(Duke Energy Ohio, Inc., for Approval of an Alternate Supplier for Percentage of Income Payment Plan Customers)