Duke Energy

New Proposal Aims To Derail Plans For Energy Rate Increase

Jan 14, 2016
Duke Energy power lines, energy
Duke Energy

Independent energy provider Dynegy's entrance into the the crowded Ohio energy market could affect competitors plans to raise rates. 

AEP and First Energy have asked state regulators to allow them to hike customers' bills to ensure energy production and guarantee income for their struggling coal plants through 2030. 

Texas-based Dynegy recently bought several coal and natural gas plants from Duke Energy. Now, the company says it can counter plans from AEP and FirstEnergy by offering the same amount of energy for $5 billion less.

liftarn / Openclipart

The state of Ohio has been investigating its competitive energy market for a year now, and the state reports electric competition is growing, which means more options for consumers.

Energy choice itself doesn’t look like much: the lights go on, the lights go off, and you pay your monthly bill the same way. But in the past, a utility company—the name that’s on most people’s electric bills—also owned the actual power plant. Electric choice, which was passed in Ohio over ten years ago, is gradually moving the market away from that system.