Duke Energy Ohio has filed an Energy Security Plan (ESP) with the Public Utilities Commission of Ohio that includes a mechanism to recover costs associated with PUCO’s PowerForward grid modernization efforts.
The non-bypassable PowerForward Rider (Rider PF) would initially be set at zero and would be used to recover investments associated with the PowerForward projects, such as advanced lighting or deployment of battery storage facilities, as they arise.
- Separately, Duke Energy Ohio testified before PUCO on a proposal for a 10 MW pilot distribution battery storage project that would allow the utility to study how storage can provide services to the grid.
Ohio’s power sector is a hybrid in which the state participates in the PJM Interconnection’s competitive wholesale power market while utilities in the state still operate as traditional regulated utilities.
That could change under proposed legislation, but for now utilities such as Duke Energy Ohio are still filing ESPs.
Duke’s latest ESP includes a placeholder for a variety of projects that could be included under PUCO’s PowerForward program, the agency’s effort to adapt the state’s grid to 21st Century innovations.
Duke Energy says the purpose of its Rider PF is “to recover costs, not covered by base rates or existing riders, related to advancing the goals of the PUCO’s PowerForward work.”
Duke has separately proposed building a battery storage project that could conceivably be consistent with PUCO’s goals.
Duke says the project could be located in its southwest Ohio service territory at a location that would allow the lithium-ion batteries to provide ancillary services, specifically frequency regulation, to PJM. The storage would also be able to provide backup power to surrounding critical public infrastructure.
Duke said any revenues would be used to offset the cost of the $20 million storage project.