Duke Energy Customers Hit with High Gas Bills: Why?

Protestors Rally Outside Duke Energy HQ During Annual Shareholder Meeting — Source: Davis Turner / Getty

Roughly 15,000 Duke Energy customers in Ohio were shocked this summer by higher gas bills. Some bills hit hundreds of dollars more than usual after the company moved to recover charges it failed to collect over the past year.

The added costs stem from a billing system installed in 2022 that racked up more than 100,000 errors in its first year. The Public Utilities Commission of Ohio (PUCO) investigated and, under an April settlement with consumer groups, allowed Duke to “back-bill” affected customers for up to 12 months of missed “gas cost recovery” charges.

The settlement lets Duke recoup about $8 million in unpaid bills but also requires the company to:

Offer a $75 credit to affected customers
Provide interest-free payment plans lasting up to 24 months
Contribute $250,000 to a utility assistance fund
Invest $1.2 million in bill credits to soften the blow for those hit with lump-sum charges

Duke also spent $2.3 million reimbursing all customers whose rates were indirectly impacted. In return, PUCO dropped a proposed $1.45 million fine against the utility.

Consumer advocates say the final deal was far better than the one initially negotiated behind closed doors.

Ohio law allows utilities to correct billing mistakes up to a year after they’re discovered, but public affairs liaison for the Ohio Consumers’ Counsel J.P. Blackwood, still urges anyone facing back-billing to request a payment plan and complain to PUCO if Duke won’t work with them.

Duke spokesperson Jeff Brooks said the company is contacting customers directly to arrange payment plans and insists it wants to “find a solution” for each case. But for those opening unexpectedly high July bills, Duke’s promise of flexibility is being met with plenty of skepticism.