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Excerpts From Entry Order:

{¶ 1} The Commission grants Duke Energy Ohio, Inc.’s motion for expedited review of compliance tariffs and approves the tariffs, as filed on January 3, 2025.

{¶ 12} On January 3, 2025, Duke filed a motion for expedited review of compliance tariffs and a request for expedited ruling. On the same date, Duke filed copies of tariffs with updated rates and an updated index in accordance with the December 4, 2024, Opinion and Order. According to Duke, the tariffs filed on January 3, 2025, are consistent with the intent of both the Stipulation and Opinion and Order, though Duke highlights two issues related to the SSO auction effective date and the effective date of the changes to the balancing service tariffs. First, Duke requests that the Commission allow it to conduct the first SSO auction in February 2026 and to begin SSO service on April 1, 2026. Although the initial tariffs proposed in this case recommended that the SSO auction begin on April 1, 2025, due to the timing of the issuance of the Opinion and Order, Duke no longer believes that date would permit sufficient time to educate bidders and to conduct an orderly auction process before the delivery date. Without sufficient bidder participation, Duke warns that the auction could lead to higher prices for customers. Duke explains that it considered proposing November 1, 2025, as the beginning of SSO service, but this start date would mean that the initial delivery period would be only 5 months, covering the winter heating period. Duke believes a shorter delivery period over the winter could lead to higher costs for customers. On the other hand, Duke asserts that beginning SSO service on April 1, 2026, would provide time for bidder education for this type of auction, information exchange as part of the bidding process, and for an orderly auction process to occur.

{¶ 13} Second, Duke requests that the changes to the balancing service in the Enhanced Balancing Service (EFBS) tariff (Rider EFBS), the Firm Balancing Service (FBS) tariff (Rider FBS), and the Supplier Balancing Costs tariff (Rider SBC), be effective June 1, 2025, instead of April 1, 2025, as initially proposed. Duke notes that the Stipulation contemplated a period of adjustment for market participants before the balancing and storage changes would go into effect as well as a period in which customers and competitive retail natural gas service (CRNGS) providers would be notified of the upcoming changes. Duke argues that, by allowing for a slight delay of two months, market participants will be provided with the requisite time needed to adjust to the new balancing service changes. Further, Duke states that the EFBS and FBS rates will not be modified on April 1, 2025, as initially proposed, and will remain unchanged until they are eliminated on June 1, 2025, since keeping the date as is would result in the EFBS and FBS rates ending mid-gas year, complicating the ultimate true up after the fact for these rates. Duke also notes that Rider SBC will take effect on June 1, 2025. 

{¶ 14} On January 10, 2025, RESA and IGS filed a joint response to Duke’s motion. Overall, RESA and IGS state that they support Duke’s motion. First, they state that, while they do not fully agree with everything stated by Duke in its motion, they believe beginning the SSO on April 1, 2026, is consistent with the Opinion and Order. RESA and IGS note that they understand that time is short for Duke and suppliers to properly prepare for and participate in an SSO auction that begins April 1, 2025; therefore, RESA and IGS are amenable to this change. Second, RESA and IGS support Duke’s proposal to revise the tariffs such that the effective date of balancing service changes be effective June 1, 2025, instead of April 1, 2025. RESA and IGS assert that the additional time will allow CRNGS providers to be notified of the changes and for them to implement those updates. RESA and IGS also note that if Riders EFBS and FBS are not changed per the Opinion and Order reasonably soon after April 1, 2025, the EFBS and FBS rates will increase because Duke will seek to pass through the rate increase that Columbia Gas Transmission LCC (TCO) intends to implement temporarily while its rate increase application is pending at the Federal Energy Regulatory Commission. For various reasons outlined in its response, RESA and IGS argue that Duke’s proposed two-month delay as well as its request to retain the current EFBS and FBS rates until June 1, 2025, are justified in that it mitigates harms that would arise due to the TCO rate increase. 

{¶ 15} Upon review of the filings, the Commission finds that Duke has stated good cause and, therefore, its motion for an expedited review of the compliance tariffs filed January 3, 2025, should be granted. Further, upon review of the filings and tariffs, the Commission finds that compliance tariffs filed on January 3, 2025, are consistent with the approved Stipulation and the December 4, 2024, Opinion and Order; therefore, the tariffs are approved, as filed. The Commission agrees with Duke that delaying the first SSO auction and the effective start of SSO service will better enable Duke customers to be properly educated regarding the transition and will provide time for bidder education, information exchange as part of the bidding process, and for an orderly auction process to occur. Opinion and Order at ¶ 72. We find that, in this specific case and for the reasons set forth by Duke in its motion, it is reasonable to delay the effective date of SSO auction service until April 1, 2026. Further, we emphasize that, by approving tariffs with an effective date of June 1, 2025, instead of April 1, 2025 for Duke’s balancing service, Duke will be able to implement the notification and timing provisions in the Stipulation more effectively such that CRNGS providers will be able to make the required internal updates to accommodate the changes, and Duke customers will have time to understand the changes as well. Opinion and Order at ¶ 73.

Entry Order (01/22/2025)
(Entry granting Duke Energy Ohio, Inc.’s motion for expedited review of compliance tariffs and approves the tariffs, as filed on January 3, 2025.)

21-903-GA-EXM
(Duke Energy – EXM-Exemption for Natural Gas Sales or Services)