Products & Services

Keeping Rates Competitive

Average retail electric rates in each of the five states we serve were below national averages in 2008. In Indiana and the Carolinas, our rates were below state averages.

We had a number of rate actions – or rate actions take effect – in 2008. In North Carolina, we reduced rates by 5.4 percent in 2008 and an additional 2.1 percent in 2009, based on a 2007 order from the North Carolina Utilities Commission.

In late 2008, Ohio regulators approved the Electric Security Plan for 2009 through 2011. As a result, customer rates will increase 2 percent per year in 2009 and 2010, and 1 percent in 2011.

We are currently in a rising cost environment, and the frequency of rate cases over the next five years will be higher than in prior years. Electric base-rate increases are forecasted for 2010, 2011 and 2012 in the Carolinas; 2009 and 2012 in Ohio; 2011 in Kentucky; and 2013 in Indiana. We will continue to aggressively manage our costs and propose regulatory approaches that help smooth out the effects of rate increases on our customers.