Understanding Your New Energy Bill

Duke Energy Ohio – Webinar February 22, 2012

Vern Hackworth, Regional Mgr. Midwest BSC

Today's agenda:

• General terms and definitions

• Bill components

• Review sections of the Duke Energy Ohio bill

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General terms & definitions:

• Energy – The basic unit of electric energy equal to one kilowatt (1,000

watts) of power supplied to or taken from an electric circuit for one hour.

Measured in kilowatt-hours (kWh).

• Demand – The rate at which energy is delivered, measured in kilowatts

(kW) and averaged over 15-minute intervals.

• Demand ratchet – minimum billing demand based on 85% of highest

recorded demand for summer months, June thru September billing.

• Power factor – The term is defined as the ratio of real power to (kW,

demand) to total apparent power (kilovolts amperes , or kVA) supplied at a

given point in time in an electric circuit, and is usually expressed as a

percentage (i.e., 90%)

• Natural Gas Consumption - This consumption is measured in hundreds of

cubic feet (ccf).

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Lights & Cooling Lighting & Equipment Lights, Equipment & Cooling

30 kW x 5 minutes + 18 kW x 5 minutes + 36 kW x 5 minutes =

15 minutes 15 minutes 15 minutes

10 kW + 6 kW + 12 kW = 28 kW

While the maximum for a 5 minute period is 36 kW, the “integrated” demand is 28 kW.

Understanding Electric Demand:

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Bill components – Rate and Riders

• A number of rate schedules are available for business and institutional

customers. Applicability of rates depend on such things as; type of service,

size of demands, or equipment on premise.

• Riders are designed to cover a type of cost or expense. Riders may apply to

various rates. Some Riders are bypassable (avoidable) if a customer selects

an alternate energy supplier.

• New Ohio Electric Security Plan (ESP) effective January 1, 2012 through

May 31, 2015.

• No change to base rate.

• 12 - Riders added, 1 - Rider name change, 1 – Rider set to zero

• 5 - Riders unchanged, 10 - Riders being terminated

• Total of 19 Riders for non-residential rates

• Reminder: information in this presentation pertains to Duke Energy Ohio. All

states and regulatory commissions have different regulations and rules. 5

Riders in Distribution Section of Bill:

Rider Description Comment

SAW /EE

Energy Efficiency Recovery Pending filing for EE

DR-IKE Storm Recovery Through 3/31/2014

OET Ohio Excise Tax No Change

USR Universal Service Fund No Change - PIPP

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Riders in Distribution Section of Bill:

Rider Description Comment

SAW /EE

Energy Efficiency Recovery Pending filing for EE

DR-IKE Storm Recovery Through 3/31/2014

OET Ohio Excise Tax No Change

USR Universal Service Fund No Change - PIPP

EER Energy Efficiency Revolving Loan Program No Change ($0.00)

EFC Economic Competitiveness Fund Changed to ($0.00)

UE-ED Uncollectable Expenses – Electric Dist No Change

IM Infrastructure Modernization No Change

BTR Base Transmission Rider Non-Bypassable

RTEP Regional Transmission Expansion Plan Non-Bypassable (Credit part of BTR)

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Riders in Generation Section of Bill:

Rider Description Comment

Following 3 Riders Combined – one Line

UE-GEN Uncollectable Expenses – Generation Non-Bypassable

ESSC Electric Security Stabilization Charge Non-Bypassable

LAF Load Factor Adjustment Non-Bypassable

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Riders in Generation Section of Bill:

Rider Description Comment

Following 3 Riders Combined – one Line

UE-GEN Uncollectable Expenses – Generation Non-Bypassable

ESSC Electric Security Stabilization Charge Non-Bypassable

LAF Load Factor Adjustment Non-Bypassable

Following Rider are a separate line item

RC Retail Capacity Bypassable

RE Retail Energy Bypassable

AER-R Alternative Energy Recovery Bypassable

RECON Fuel & Reserve Capacity Reconciliation Bypassable ($.00 now)

RTO Regional Transmission Organization Bypassable ($.00 now)

SCR Supplier Cost Reconciliation Bypassable ($.00 now)

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Top part of page 1 is

Remittance Slip.

Payment to include

Account Number(s)

Choice Bill – Top of page 1 of 3

Account Number 1234-5555-12-3

Acme Enterprises

Attn: Accounting Dept.

123 Main St.

Cincinnati OH 45202-4109

100 00001112223 12345555123 000111222 11112223333

Acme Enterprises

123 Main St.

Cincinnati OH 45202

1234-5555-12-3 Duke Energy 1-877-632-3853

For Account Service, Please contact Jim Snow

Gas Alternative Supplier 1-800-444-4444

Electric Alternative Supplier 1-800-555-5555

98765432

12345678

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Choice Bill – Bottom of page 1 of 3

Gas Alternative – Rate GI11

Supplier

Electric Alternative – Rate EI11

Supplier

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Choice Bill – Top of page 2 of 3

Acme Enterprises 123 Main St

Cincinnati OH 45202 1234-5555-12-3

If you have any questions about electric supplier service received from Electric Alternative Supplier, please call them at

1-800-555-5555 or write to: 111 South Street Cincinnati OH 44444

If you have any questions about gas supplier service received from Gas Alternative Supplier, please call them at

1-800-444-4444 or write to: 222 North Street Cincinnati OH 33333

****Your electric supplier has changed the rate by which this bill is calculated. Please contact your supplier with

Any questions.****

Gas Alternative Supplier

Rate GI11 – Gas Alternative

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Choice Bill – Bottom of page 2 of 3

Electric Alternative Supplier

Rate El11 – Electric Alternative

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• If Duke Energy Ohio provides electric energy (non-choice),

Riders RC, RE, AER-R, RECON, RTO, SCR will be

separate line items under Generation Riders and no Supplier

section on the bill.

Non Choice Information Changes – Bottom of page 2 of 3

Electric Alternative Supplier

Rate El11 – Electric Alternative

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Choice Bill – Page 3 of 3

Acme Enterprises 123 Main St

Cincinnati OH 45202 1234-5555-12-3

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• Incentive program where you can receive cash for installing

high-efficiency lighting, HVAC, variable frequency drives,

pumps and other qualifying equipment.

• The use of energy efficient equipment enables your

business to improve its bottom line by reducing energy

consumption. And Smart $aver incentives help lower the

costs associated with upgrades or new installations.

• A comprehensive list of all standard “prescriptive” incentives

are available on our web site. www.duke-energy.com

• If your equipment isn't included in the Prescriptive Incentive

program, it may qualify under the Smart $aver Custom

Incentive program.

Duke Energy’s Smart $aver Program - Ohio

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We covered:

• General terms and definitions

• Bill components

• Review sections of the Duke Energy Ohio bill

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Questions?