Distribution Decoupling Rider
Duke Energy Ohio
Current Rate
0.3000¢/kWh
PUCO Case
08-920-EL-SSO
Est. 2009
Reconciles the difference between allowed and actual distribution revenues. Being phased out in 2026.
📜 History & Background
Duke Energy Ohio's Distribution Decoupling Rider (DDR) was designed to decouple the utility's distribution revenue from the volume of electricity sold. Traditional utility rate structures create a perverse incentive: utilities earn more revenue when customers consume more electricity, discouraging them from aggressively promoting conservation. Revenue decoupling breaks this link — the DDR reconciles the difference between Duke's approved distribution revenue requirement and its actual distribution revenue. In years when customers conserve more than projected, the DDR adds a surcharge to make Duke whole; in years when consumption is higher than projected, the DDR provides a credit to customers. As Duke Energy Ohio's 2026 rate case proceedings have wound down, the DDR is being phased out.
⚙️ How It Works
The DDR rate can be positive or negative depending on annual reconciliation. It is a small per-kWh charge (currently approximately 0.3¢/kWh) that adjusts based on whether actual distribution revenues are above or below the approved level.
🔒 If You Switch Suppliers
Non-bypassable — distribution revenue decoupling applies to all customers on the distribution system.