Workshop I. Duke Energy Ohio: Significant Development Impacting Electric Rates. Tuesday, February 19, :45 p.m. to 3 p.m.

Transcription

1 Workshop I Duke Energy Ohio: Significant Development Impacting Electric Rates Tuesday, February 19, :45 p.m. to 3 p.m.

2 Biographical Information Wyatt Elbin, Energy Supply Specialist Marathon Petroleum Corporation, 539 S. Main St. Findlay, OH Wyatt works in the Energy Supply group at Marathon Petroleum. The group is responsibility for procuring all of Marathon s electric needs and tracking energy policy and legislation. Wyatt has been with Marathon for four years and previously worked for Marathon as a project engineer. Wyatt is a graduate of the University of Dayton with a B.S. in Civil Engineering and a M.S. in Renewable and Clean Energy. Joseph G. Bowser, Technical Specialist, McNees Wallace & Nurick LLC 21 East State Street 17 th Floor, Columbus, Ohio jbowser@mwncmh.com Joe Bowser is a Technical Specialist in the Columbus, Ohio office of McNees Wallace & Nurick LLC. In this role he focuses on helping clients address issues that affect the price and availability of utility services. As part of his responsibilities, he also provides clients with assistance in evaluating and acting upon opportunities to secure value for their demand response and other capabilities in the base residual auction ( BRA ) and incremental auctions conducted by PJM Interconnection LLC ( PJM ) as part of the Reliability Pricing Model ( RPM ). Prior to joining McNees Wallace & Nurick LLC, Joe worked with the Ohio Consumers Counsel as Director of Analytical Services. There he managed the analysis of financial, accounting, and ratemaking issues associated with utility regulatory filings, and assisted in policy development and strategy. Joe also spent ten years at Northeast Utilities, where he held positions in the Regulatory Planning and Accounting departments of the company. He provided litigation support in regulatory hearings and assisted in the preparation of the financial/technical documents filed with state and federal regulatory commissions. Joe began his career with the Federal Energy Regulatory Commission (FERC), where he lead and conducted audits of gas and electric utilities in the Eastern and Midwestern regions of the United States. Joe is a member of the American Institute of Certified Public Accountants, and received a Bachelor of Science degree in Accounting from Clarion State College. He also obtained a Master of Science degree in Finance from Rensselaer Polytechnic Institute. James E. Ziolkowski, P.E., Director, Rates and Regulatory Planning, Duke Energy 139 East Fourth Street, Room 1102-M, P.O. Box 960, Cincinnati, OH Fax: Jim.Ziolkowski@duke-energy.com Jim Ziolkowski has worked in the Rates area at Duke Energy for twenty-one years. He participated in the unbundling and design of the Company s electric rates, develops and administers electric and gas base rates, prepares various rider filings and regulatory reports, and testifies before the Ohio and Kentucky Commissions on rate-related matters. His responsibilities include occasionally meeting with Duke Energy s large customers and Account Representatives to interpret and apply rates to various situations. Jim frequently gives rate-related presentations at industry conferences and seminars, and he conducts training for internal and external groups. In his twenty-nine years at Duke Energy / Cinergy, he also has worked as an Industrial Account Engineer and program manager for various Demand Side Management Programs. Before Duke Energy, Jim worked for Mobil Oil Corporation in New York and was an officer in the U.S. Navy. In the Navy, he specialized in nuclear propulsion. Jim received a B.S. in mechanical engineering from the U.S. Naval Academy and an MBA from Miami University. He is a registered Professional Engineer in the State of Ohio and was designated as a Chartered Industrial Gas Consultant by the Institute of Gas Technology.

3 Duke Energy-Ohio (Duke) Priceless Insights into Developments Affecting Electric Rates in Duke Energy s Service Territory, including Rates & Tariffs, Shopping and Savings Opportunities, PJM Capacity Auction Update, Demand Response, and Impacts of the Tax Cuts and Jobs Act of rd Annual Ohio Energy Management Conference February 19, 2019 Joseph Bowser Technical Specialist McNees Wallace & Nurick LLC

4 Outline Electric Security Plan (ESP) IV for the period June 1, 2018 through May 31, 2024 Electric Rate Case Tax Cuts and Jobs Act of 2017 Customer Shopping Statistics Generation Supply Auctions (CBP) for the Standard Service Offer PJM Capacity Auctions and Demand Response Opportunities McNees Wallace & Nurick LLC

5 ESP IV Case No EL-SSO Filing made June 1, 2017 ESP to run from June 1, 2018 thru May 31, 2024 Proposed four new non-bypassable riders: Incentive Ratemaking Mechanism (Rider IRM) would permit the Company to adjust rates if its return on equity moved outside a defined band of 200 basis points above or below the ROE approved in the Company s most recent base electric distribution rate case Power Forward Rider (PF) to bill for new programs reflecting the current intent of the PUCO s Power Forward initiative and recover incremental costs not included in the Distribution Capital Investment Rider Electric Service Reliability Rider (ESRR) to recover the costs of vegetation management (tree trimming) McNees Wallace & Nurick LLC

6 ESP IV continued Proposed Regulatory Mandates Rider rider that would recover costs incurred in response to changes in law or regulation, including changes in tax laws or regulations SSO generation to continue to be sourced through competitive generation auctions March 9, 2018 Status report issued to the PUCO that settlement discussions in the ESP IV and the rate case are continuing and should conclude soon Stipulation filed with the PUCO on 4/13/2018 Discussion continued under the rate case slides McNees Wallace & Nurick LLC

7 Electric Rate Case No EL-AIR Filing made March 2, 2017 Requested new rates effective January 1, 2018 Proposed a base rate increase of $15.4 million Sought to revise the current Distribution Capital Investment Rider to include common, general, and intangible plant Staff Report issued September 26, 2017, recommending: Rate decrease of between $18.4 million and $28.9 million DCI Rider request to include other types of plant investment be denied March 9, 2018 Status report issued to the PUCO that settlement discussions in the ESP IV and the rate case are continuing and should conclude soon Stipulation filed with the PUCO on 4/13/2018: McNees Wallace & Nurick LLC

8 Rate Case/ESP continued ESP term extended to May 2025 New rider ESRR (to be updated annually) is established New rider PF is established, with 3 components: 1) Incremental costs if any, that Company incurs as a result of a PUCO directive issued on conclusion of the PF initiative 2) Costs associated with AMI and data access 3) Costs of infrastructure modernization plan Rider DCI is extended through May 2025 and Company may establish a pilot battery storage project (up to $20M investment) recovered thru DCI separate application must be filed Rider IRM was withdrawn Regulatory Mandates Rider was withdrawn McNees Wallace & Nurick LLC

9 Rate Case/ESP continued The large customer interruptible load program ends May 31, 2018 Rider BTR (Base Transmission Rider) is modified to use a 1 CP allocation for allocating transmission costs to rate schedules and for calculating demand-based charges in the next Rider BTR update Company will file at least one base rate electric case on or before May 31, 2024 Rider PSR (Price Stabilization Rider) approved to recover or credit the net amount resulting from wholesale market transactions for Duke s OVEC entitlement (effective with energy and capacity delivered to Duke on and after 1/1/18) McNees Wallace & Nurick LLC

10 Rate Case/ESP continued Rider SCR (Supplier Cost Reconciliation Rider) is modified to recover the costs of conducting the auctions for SSO load and to exclude costs of conducting the RFPs for PIPP load Rider UE-ED (Uncollectible Expense Electric Distribution Rider) is modified to recover the costs associated with conducting the RFPs for PIPP service PUCO approved the stipulation on December 19, 2018 New rates effective January McNees Wallace & Nurick LLC

11 Tax Cuts and Jobs Act of 2017 (TCJA) Among other provisions, the TCJA reduced the corporate federal income tax rates from 35% to 21% effective January 1, 2018 Commission opened a COI (Commission Ordered Investigation) case in January 2018 Utilities are to reserve a regulatory liability on their books as of January 1, 2018 for the amount they will need to reduce rates by Comments filed on February 15, 2018, to address: The process/mechanics for reconciling rates with the TCJA Discussion of revenue requirements Level of tax expense recovered through base rates Treatment of riders containing a federal income tax component Accumulated deferred income taxes McNees Wallace & Nurick LLC

12 TCJA continued Several riders have been adjusted to reflect the lower federal income tax rate that was effective January 1, 2018 Gas riders AU Advanced Utility Rider AMRP Accelerated Mains Replacement Program Electric riders DR-IM Infrastructure Modernization DCI Distribution Capital Investment BTR Base Transmission Rider Additional adjustments for excess accumulated deferred income taxes were recognized in Duke s application to establish a credit rider for the TCJA in Case No EL-UNC, filed on July 25, McNees Wallace & Nurick LLC

13 TCJA continued Hearing held on July 10, 2018 of whether limited issue of the utilities should be required to establish a deferred tax liability effective January 1, 2018 Company filed on 7/25/18 in Case No , to establish Rider ETCJA to return tax benefits of the TCJA for electric operations for: A percentage credit rate applied to a customer s base distribution charges proposed to be effective 10/1/18 (includes recovery of unprotected excess ADIT, stub portion of change to 21% tax rate, and recovery of protected excess ADIT) Staff review filed on 12/17/2018 recommended approval of Duke s application PUCO Order approving the rider is pending as of January 14, McNees Wallace & Nurick LLC

14 Gas TCJA Credit Rider filing (Case No ) Company filed on 12/21/18 to reduce base rates by approximately 5.3% and to implement the GTCJA rider effective 4/1/19 Estimated GTCJA credit rates: Interruptible transportation General service and large firm transport. $0.0083/ccf $43.53/month McNees Wallace & Nurick LLC

15 Transmission Rates Rider BTR Base Transmission Rider (NB) Update filed on 7/13/2018 to be effective 10/2018 Updated rates reflected: 1) 21% Federal Income Tax Rate 2) Increased NITS rates under the FERC formula rate that was effective June 2018 NITS rate increased from $20,055/MWyear ($106.5 M revenue requirement) to $24,077/MW-year ($121.3 M revenue requirement) 3) However, a change in the allocation of projected RTEP credits per FERC Order in EL05-121, resulted in a reduction to the Rider BTR rates from those in effect prior to 10/

16 Duke Energy Ohio (Percent of Load Shopping) Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2016 Sept. 30, 2017 Nov Residential 50.2% 51.2% 50.9% 59.1% 57.1% Sales Commercial 82.5% 82.4% 84.5% 85.9% 89.5% Sales Industrial 95.2% 95.7% 97.2% 98.1% 97.9% Sales Total Sales* 75.1% 75.6% 80.8% 86.1% 81.4% *Includes residential, commercial, industrial, and other sales McNees Wallace & Nurick LLC

17 Duke s CBP Auction to Establish SSO Prices For the ESP III (Case No ) First auction for ESP III conducted in May 2015 Most recent auctions conducted in September 2018 To procure energy, capacity, and market based transmission and transmission ancillary services Delivery periods covered: Blended Price % June 2015 thru May 2016 $58.51/MWH 100 June 2016 thru May 2017 $ June 2017 thru May 2018 $ June 2018 thru May 2019 $ June 2019 thru May 2020 $ McNees Wallace & Nurick LLC

18 Shopping for your Electric Generation Supply? Price to Compare (PTC) your avoidable charges if you shop, typically expressed in cents/kwh PTC includes: Retail Energy Rider (Rider RE) Alternative Energy Recovery Rider (Rider AER-R) Retail Capacity Rider (Rider RC) Supplier Cost Reconciliation Rider, per kwh (Rider SCR) McNees Wallace & Nurick LLC

19 Peak Shaving to Reduce Electric Supply Costs Customers may be able to reduce their capacity costs by managing their Peak Load Contribution (PLC) PLC is determined between June 1 and Sept. 30 of the prior delivery year, based on customer loads during the PJM 5 CP hours PJM s MW load on the 5 CP hours in the summer of 2018: 8/28/2018 HE ,454 9/04/2018 HE ,285 6/18/2018 HE ,169 9/05/2018 HE ,621 8/27/2018 HE ,509 Estimated annual cost avoidance for 3 MW peak shaving strategy $168, $182,000 Note Benefits of cost avoidance must be weighed against costs of effectuating the curtailments (e.g. the hours that a customer will be required to curtail load during all 5 CP hours will typically be more than DR program participation has required) McNees Wallace & Nurick LLC

20 PJM Load Management (aka PJM Emergency Load Response) What is it? A program in which customers receive compensation in exchange for agreeing to curtail load if asked to do so by PJM. A request to curtail load is called an event What two resources types are there? (1) Pre-emergency Resources all load management is this type unless granted an exception to be an emergency resource; (2) Emergency Resources load management resources that use generation are only allowed to operate during PJM emergency conditions that require a declaration of an Energy Emergency Alert How much advance notice do participants receive for making curtailments? The standard advance notification is 30 minutes, but a participant can seek up to 120 minutes if reducing load in 30 minutes would result in damage to feedstock or equipment, or if safety issues would result DR registrations: 30 minute notice 60% 60 minute notice 4% 120 minute notice 36% McNees Wallace & Nurick LLC

21 Who Participates in PJM Load Management? PJM Demand Response Capability by Sector Manufacturing 50% Residential 14% Office Buildings 9% Schools 8% Hospitals 5% Retail Service 4% Other 10% Load Reduction Methods Adjusting a Manufacturing process 39% Reducing HVAC 27% Behind-the-meter Generator 23% Lighting 8% Other 3% McNees Wallace & Nurick LLC

22 PJM Load Management How is compensation determined? PJM permits demand resources to be counted like a capacity resource. Demand resources bid into the PJM RPM auctions, through which PJM acquires its needed capacity, three years in advance of the delivery year. Compensation is based on the auction clearing prices for the demand resource type times the customer s curtailment commitment. Example: assume a 2MW commitment at a clearing price of $164.77/MW-day gross compensation = x 2 x 365 days = approx. $120,000 Is there any other compensation available? Yes, participants may also be eligible for emergency energy compensation if PJM calls an event and the participant curtails load during the event Can I participate in Load Management on my own? Participation is required to be through a Curtailment Service Provider (CSP). Any PJM member can act as a CSP, and EDCs, LSEs and retail customers that are PJM members may take on the role of a CSP A listing of CSPs is published on the PJM website McNees Wallace & Nurick LLC

23 ATSI, AEP, DAY, DEOK Load Management Clearing Prices ($ per MW-Day) PRODUCT Limited $ N/A N/A N/A N/A Extended Summer $ N/A N/A N/A N/A Annual $120.00* N/A N/A N/A N/A Base N/A $ $80.00 N/A N/A CP $ $ $76.53 (1) $ DEOK Load Price $ $ $96.77 $ $ *Annual gross revenues per MW = $ x 365 days = $43,800 (1) DEOK clearing price = $ as DEOK was constrained for an overload on a 345 kv line. Transmission upgrade projects are expected to be in-service by 2021 that will improve the transmission import limit by about 900 MW. DEOK will be assigned the bulk of the upgrade costs. There was not any price separation between Duke and other LDAs above in the BRA auction McNees Wallace & Nurick LLC

24 PJM Load Management How does PJM determine when to dispatch load management? PJM will dispatch when expected to be short on reserves. Typically means that most of the economic generation available has been dispatched and load management is expected to be needed to meet system load and reserves to avoid loading maximum emergency generation or taking other emergency actions. For a typical capacity shortage, PJM will deploy the 120 minute lead time resources first and stagger the amount dispatched so that the load reductions are ramped-in as system conditions materialize. The 30 minute lead time resources are expected to be used for unexpected system issues, when capacity is needed immediately. Typically, load management is dispatched by zone unless there is a more localized issue, when PJM may dispatch by subzone. What happens if a customer fails to reduce load in a PJM event for all or part of its kw commitment? Under-compliance charges are assessed depending on the degree of the underperformance and the particular DR type i.e. Limited, Base, CP, etc McNees Wallace & Nurick LLC

25 PJM Load Management Events DELIVERY YEAR (June 1 May 31) * ? NUMBER OF EVENTS Since the Delivery Year, load management has averaged 97+% performance when called on to curtail load. * 9 of the events occurred in January 2014 and March McNees Wallace & Nurick LLC

26 Takeaways Opportunities exist to reduce your electric bills by obtaining service from competitive suppliers of generation service There are additional opportunities to reduce your bill by implementing energy efficiency measures Ability to participate in PJM demand response programs for customers with curtailable load Peak shaving is another option for potentially reducing electric bills Reducing your electric bill requires customers to be proactive To learn more, contact: Joe Bowser McNees Wallace & Nurick LLC

27 Questions? Helpful Web Sites Duke Energy PUCO PJM IEU-Ohio FERC McNees Wallace & Nurick LLC

28 Duke Energy Ohio Rates Update - February 2019 Jim Ziolkowski, Director Rates & Regulatory Planning

29 Agenda Duke Energy Ohio Global Settlement Major Provisions Relating to Distribution Service New Riders Other Distribution Items SSO and Auction Schedule Tax Cuts and Jobs Act of 2017 Price To Compare Questions 27

30 GLOBAL SETTLEMENT of ELECTRIC SECURITY PLAN ESP IV ELECTRIC DISTRIBUTION BASE RATE CASE 28

31 Overview On March 2, 2017, Duke Energy Ohio (DEO) filed a rate case with the Public Utilities Commission of Ohio (PUCO) to request an increase in electric base distribution rates of approximately $15 million. On June 1, 2017, the Company filed an application for a new six-year ESP which will set the regulatory model for the period beginning after May 31, Duke Energy Ohio s previous Electric Security Plan (ESP) was effective from June 1, 2015, through May 31,

32 Overview On April 13, 2018, DEO, along with the Staff of the Public Utilities Commission of Ohio, the City of Cincinnati, People Working Cooperatively, Ohio Energy Group, Ohio Hospital Association, and Ohio Partners for Affordable Energy filed a Stipulation and Recommendation (Stipulation) with the PUCO resolving issues in the distribution base rate case, Electric Security Plan, and other proceedings. 30

33 Overview On December 19, 2018 the PUCO approved the Stipulation. New base rates were effective January Several riders were approved as well but are currently set at $0. DEO expects to populate these riders over the upcoming months. 31

34 Major Provisions of the Stipulation Distribution Base Rates Distribution base rate decrease of approximately $19 million. Return on equity of 9.84% with 50.75% equity ratio. Monthly customer charges remain at previous levels. Rate DP (Distribution Service at Primary Voltage) customer charge set at $100. The term of the ESP is June 1, 2018 through May 31, Duke Energy Ohio will file at least one distribution base rate case by May 31,

35 Major Provisions of the Stipulation - Riders Distribution Capital Investment Rider (DCI) Rider DCI will continue. The Commission found that proactive system investment is important for Ohio s economy and improving reliability. Subject to caps on the amount annual revenue that can be collected, some of which are tied to meeting reliability targets. Subject to annual audits typically done by a third party. The Company and Commission Staff will develop an annual work plan to focus spending in areas with the greatest impact on reliability. 33

36 Major Provisions of the Stipulation - Riders Electric Service Reliability Rider (ESRR) Recovers vegetation management costs for its distribution system. $10.7 million of vegetation management expenses included in base rates. Up to $10 million of contractor vegetation management costs above the $10.7 million in base rates can be recovered through Rider ESRR. Current rate is zero. 34

37 Major Provisions of the Stipulation - Riders PowerForward Rider (PF) This rider recovers the capital and O&M costs of programs, modifications, and offerings related to the continued evolution of the distribution grid and enhanced customer experience, including programs that may be engendered by the Commission s PowerForward review incremental to amounts recovered in other riders or in base rates. See for more information about PowerForward. Three components: Commission directives Data access Infrastructure modernization Current rate is zero. 35

38 Major Provisions of the Stipulation - Riders Price Stabilization Rider (PSR) Recovers the difference between the costs incurred under Duke Energy Ohio s participation in the OVEC Inter Company Power Agreement and any revenues received from the selling its entitlement to that output into the wholesale market. Can be a charge or credit. Current rate is zero. Rider PSR is nearly identical to riders approved for AEP Ohio and for Dayton Power & Light who have a similar relationship with OVEC. 36

39 Major Provisions of the Stipulation - Riders Infrastructure Modernization Rider (DR-IM) Rider DR-IM set at zero effective with January 2019 billing. Rider DR- IM will be terminated. Costs rolled into base rates. Recovered Smart Grid costs. Distribution Storm Rider (DSR) Rider DSR was originally approved in 2015 to track annual incremental major storm expenses as compared to the amount recovered in base rates. The new ESP requires that, on an annual basis, DEO will apply for an adjustment to Rider DSR to refund or collect amounts as compared to the baseline of $4.3 million. 37

40 Major Provisions of the Stipulation Other Items Net Metering (Rider NM and NM-H) Excess generation credits will be based only on the energy portion of the retail SSO rate (Rider RE). DEO will recover the cost of the excess generation credits through Rider SCR (Supplier Cost Reconciliation). The net metering tariff sheets will be amended as necessary in the future to comply with Commission orders in the pending Net Metering rule review docket. 38

41 Major Provisions of the Stipulation Other Items Backup Delivery Point Rider (Rider BDP) New rates for backup feed service effective January 2019: 39

42 Tax Cut and Jobs Acto of 2017 Tax Cut and Jobs Act of 2017 DEO has been flowing through the benefit of the lower income tax rate through its capital-related riders since last spring. There are pending applications to flow through all of the benefits of the Tax Act for electric and gas customers (Case No EL-UNC for electric, and Case No GA-UNC for gas) If the Company s proposals are approved, electric customers will see approximately $21 million annual rate reduction, in addition to the lower rates already being reflected in riders and gas customers will see approximately $24 million annual rate reduction, in addition to the lower rates already being reflected in riders. 40

43 Major Provisions of the Stipulation List of All Riders Rider Name Tariff Update Retail Capacity Rider Rider RC Annual Retail Energy Rider Rider RE Annual Supplier Cost Reconciliation Rider Rider SCR Quarterly Distribution Capital Investment Rider Rider DCI Quarterly Base Transmission Rider Rider BTR Annual Alternative Energy Recovery Rider Rider AER-R Quarterly Distribution Decoupling Rider Rider DDR Annual 41

44 Major Provisions of the Stipulation List of All Riders Rider Name Tariff Update Distribution Storm Rider Rider DSR Annual Uncollectible Expense Rider Generation Rider UE-GEN Annual Economic Competitiveness Fund Rider Rider ECF Annual Uncollectible Expense Rider Distribution Rider UE-ED Annual Energy Efficiency / Peak Demand Response Rider Rider EE-PDRR Annual PowerForward Rider Rider PF Annual Electric Service Reliability Rider Rider ESRR Annual 42

45 Major Provisions of the Stipulation List of All Riders Rider Name Tariff Update Price Stabilization Rider Rider PSR Quarterly Universal Service Fund Rider Rider USR Annual Regional Transmission Organization Rider Rider RTO Upon application Ohio Excise Tax Rider Rider OET N/A 43

46 Rider Applicability Table Riders Applicable to Non-Shopper and Shopper Generation Riders Non-Shopper Generation Riders Shopper Rider RC (a) Rider RE (a) Rider AER-R (a) Rider SCR (b) Rider UE-GEN (c) CRES Offer Rider UE-GEN Rider PSR Rider PSR Transmission Riders Rider BTR Transmission Riders Rider BTR Rider RTO Distribution Riders Rider DCI Rider EE/PDR Rider DSR Rider DDR Rider UE-ED Rider PF Rider ESRR Rider ECF Rider OET Rider USR Distribution Riders Rider DCI Rider EE/PDR Rider DSR Rider DDR Rider UE-ED Rider PF Rider ESRR Rider ECF Rider OET Rider USR Note: (a) Fully bypassable for shoppers. (b) Conditionally bypassable. (c) Bypassable for accounts not participating in the Purchase of Receivables Program. 44

47 Provisions Relating to SSO Supply SSO Load Auction follows same format as in current ESP (i.e., descending clock). Delivery periods and auctions staggered. Full requirements, load following product. At least two auctions for each delivery period. Charles River & Associates to manage auction process. Excludes procurement of RECs to comply with renewable energy standards. Continuation of Riders RC (Retail Capacity) and RE (Retail Energy), as currently structured. Continuation of Supplier Cost Reconciliation Rider (Rider SCR) to true-up SSO revenue with SSO supply costs. Rider SCR includes recovery of auction-related costs from SSO customers. PIPP Load RFPs for 100 percent of load. Recovery of PIPP auction costs via Rider UE-ED. 45

48 Auction Schedule June 2018 through May 2024 DEO ESP CBP Schedule ESP Auction Date Tranche Load # # # # # # # # # # # 12 Target Cap 17 November February PIPP RFP 1 16 September S February F PIPP RFP 2 F 17 September S February F % PIPP PIPP RFP 3 Load F September S February F PIPP RFP 4 17 September S February F 16 PIPP RFP 5 September S February F PIPP RFP % PIPP Load 100 % PIPP Load 100 % PIPP Load 100 % PIPP Load 100 % PIPP Load N F 36 months June 2018 May months June 2018 May months June 2018 May months June 2018 May months June 2018 May months June 2018 May months June 2018 May months June 2019 May months June 2019 May months F June 2019 May months June 2020 May months June 2020 May months June 2020 May months June 2020 May months June 2020 May 2022 F 12 months June 2021 May months June 2021 May months June 2021 May 2022 F 24 months June 2022 May months June 2022 May months June 2022 May months June 2022 May months June 2022 May months June 2023 May months June 2023 May months F June 2023 May 2024 Total Load

49 Price To Compare 47

50 How Do I Calculate My Price to Compare? Compare: DE OH s Rider RC Charge + Rider RE Charge + Rider SCR Charge + Rider AERR Charge vs. The CRES Provider s price for electricity Note: For Large C&I Customers, Price To Compare varies based on load factor 48

51 Annual Price To Compare (Example) Load Price To kw kwh Factor AERR, RTO, SCR RC, RE Total Compare ( ) 1, , % , , , , % , , , , % , , , , % , , , , % , , , , % , , , , % , , , , % , , , , % , , , , % , , , , % , , , , % , , ,691,227 6, , ,

52 Duke Energy Ohio Tariffs Duke Energy s tariffs can be found online at: 50

53 51