DDRdistribution🔒 Non-bypassable

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.

Other Duke Energy Ohio Riders

← All utilities