The Ohio Supreme Court has ruled Duke Energy can charge natural gas consumers in Southwest Ohio $29 million to cover costs for retiring man-made propane caverns.
The June 5 decision affirms a 2023 decision by the Public Utilities Commission of Ohio, which was appealed to the high court by state watchdog agency the Office of the Ohio Consumers’ Counsel. The agency was contesting $17 million of the charges, which will be paid over 10 years.
“(PUCO) did not err in permitting utility to recover from customers through rates the costs associated with retiring its propane caverns,” the court said in its ruling, adding such costs are considered part of providing service that are charged to ratepayers.
Where are Duke’s propane caverns?
The caverns located in Cincinnati’s East End neighborhood were no longer needed upon the 2022 completion of the central corridor pipeline.
Duke and PUCO considered the closure of the facilities as part of the overall cost of the new pipeline, but the consumer agency argued they fell short of state requirements that capital improvements be “used and useful.”
The decision ends the legal battle, but won’t result in additional charges to Ohio consumers who began paying for closing costs after PUCO’s original ruling.
North Carolina-based Duke Energy serves 457,000 natural gas and 765,000 electric customers in 10 counties in the southwest corner of Ohio.
This article originally appeared on Cincinnati Enquirer: Ohio Supreme Court approves Duke Energy rate charges to close caverns
Reporting by Alexander Coolidge, Cincinnati Enquirer / Cincinnati Enquirer
USA TODAY Network via Reuters Connect
By Alexander Coolidge, Cincinnati Enquirer | USA TODAY Network
