Duke Energy customers feel financial crunch of higher bills heading into winter

BY KENTON HORNBECK | LINK nky REPORTER

Covington small business owner Chris Conley wasn’t expecting to see his electricity bill increase from $96 in November to $331.60 in December.

For many residents and business owners, opening the mail toward the end of the year can be an anxiety-inducing activity, especially as the outside temperatures begin to cover vehicles in a pesky layer of frost. Oftentimes, an increased energy bill in the winter months isn’t uncommon, but a spike in prices can be jarring.

Conley and his wife opened a small business in Covington’s MainStrasse Village in July 2022. Alchemy Aesthetics, their family-owned boutique, sells crystals, gemstones, jewelry and handmade soaps.

“It’s kind of a quirky gift shop,” said Conley. Their business is a customer of Duke Energy Kentucky, the only electric utility company servicing Northern Kentucky’s river cities. Frustrated, Conley took to Facebook to share his concerns about rising electricity costs with his community.

“We’re just getting started in our small business. When you start raising bills 60% to 70% higher than what they normally are, stuff like that can put small businesses out of business before they even get a chance to really begin,” Conley told LINK nky. “Luckily, we’re in a financial position where a $500 electric bill isn’t going to make us close our doors. But what about those people and businesses who are still struggling to recover from COVID?”

When he scanned his bill, the primary charge that most perplexed Conley was the Electric Fuel Adjustment Charge. Besides his normal energy consumption charge, it was the second largest amount owed on the bill. Naturally, Conley hopped on Google to research what the charge was. He was also able to connect with a Duke Energy customer service representative through the phone where he said he raised questions, voiced his concerns, and was then sent to an escalation line.

“They’ll send things to escalation and then you never hear from them,” said Conley. “Who are you going to complain to?”

Conley isn’t the only Duke Energy customer to regularly receive this charge on their bill. In fact, Duke Energy isn’t even the only company that has an Electric Fuel Adjustment Charge on their bills. Owen Electric, which provides electricity to many in the region’s rural communities, includes an Electric Fuel Adjustment Charge, as does the Kentucky Power Company in Eastern Kentucky.

No such charge exists across the river in Ohio.

What exactly is an Electric Fuel Adjustment Charge?

For a utility provider, the purpose of the Electric Fuel Adjustment Charge is to reimburse the power company, or in this specific instance, Duke Energy, for the fuel they purchase to run their power plants. The Duke Energy website states the “charge can fluctuate widely over relatively short peri- ods of time.”

Essentially, the cost Duke Energy Kentucky pays for fuel is passed through to their customers in the form of the Electric Fuel Adjustment Charge. Sally Thelen, director of communications for Duke Energy, emphasized to LINK nky that the charge is not a markup, but a straight pass-through to the customer.

The Duke Energy website acknowledges that as prices increase when the weather turns cold, their customers will see higher energy bills due to the increased cost of fuel needed to run their power plants.

“With prices increasing everywhere along with colder temperatures, we are committed to keeping your energy bill as low as possible. Many customers are seeing higher energy bills due in large part to a dramatic increase in the cost of fuel needed to power our plants. Duke Energy does not profit from higher fuel costs, and we are doing all we can to help protect our customers from these rising costs.” Thelan said.

Thelen told LINK nky that Duke Energy has done significant outreach to their customers to ensure they understand why prices are going up since October 2021. On December 6, Duke Energy Kentucky sent an email to their customers which sought to explain why their bills would be increasing from the fall into the winter months and included payment assistance program information for customers in need of such services.

In hopes of alleviating the financial burden, the Duke Energy email offered their customers energy saving solutions such as tutorials on how to install weatherstripping on their home’s doors and windows, and how to effectively caulk around their doors and windows.

A primary supplier of power in Northern Kentucky is the coal-fired East Bend Power Station located along the Ohio River near Rabbit Hash in Boone County. Duke Energy Kentucky owns East Bend so the fuel cost seen on a customer’s bill is the cost of fuel to run East Bend, which is coal. The price of coal is set by financial markets. Duke Energy purchases the coal at market rates.

“The fuel charge is related to the fuel cost associated with running East Bend Station, our generating plant in Boone County that runs on coal-fired generation,” said Thelen. “I can tell you that the cost of coal is also up considerably which is driving the higher prices as well.”

The price of coal has risen considerably since last winter due to a multitude of economic factors such as inflation, strained supply chains and increased demand. As countries around the world recovered from the COVID-19 pandemic shutdowns, demand for coal sharply increased. People wanted electricity faster than coal miners could produce the resource to sell to power plants. According to data from tradingeconomics.com, coal prices have increased approximately 40% from last December to this December.

Duke Energy Kentucky is required to file documentation with the Kentucky Public Service Commission, a three-member administrative body that regulates the intrastate rates of investor-owned utilities such as electric, natural gas and water and sewage services. The documentation breaks down how much Duke Energy Kentucky spent on fuel for each month.

In the commonwealth, Duke Energy Kentucky owns the power generation assets that produce the electricity; in this case, “generation assets” means power plants. This is different from Ohio where the non-regulated market allows power produced to be purchased at scheduled auctions.

“This is unique to Kentucky’s regulated utility market where we have generation assets,” said Thelen. “In Ohio, it’s a non-regulated market where power is purchased in scheduled auctions. Duke Energy Ohio doesn’t own generation assets anymore after selling off their commercial generation about nine years ago.”

Conley is a resident of Milford, OH, and prefers the way the Buckeye State allows customers to choose their energy providers.

“In the state of Kentucky, there aren’t the options that you have in Ohio,” Conley said. “Ohio gives you the option. You can pick your supplier. I changed suppliers regularly in the state of Ohio to whoever is offering the best rate competitive amongst energy companies. It’s not happening in Kentucky. They’re not allowing you to choose your energy provider.”

How is the charge calculated?

The charge is calculated by multiplying the Fuel Adjustment Clause Rate by the customer’s electricity per kilowatt hour used, or the amount of electricity they consumed during that billing month.

The Fuel Adjustment Clause Rate is calculated by dividing the energy provider’s fuel cost by their total sales for that month, minus their base fuel rate. Set in October 2021, Duke Energy’s base fuel rate is $.025401.

“The Fuel Adjustment Charge gets updated monthly to ensure that the regular energy charge includes only the actual fuel costs incurred each month, on a two month lag,” said Thelen.

Yes, the fuel costs on the bill lag two months behind the current billing period. Customers receiving their December electricity bill are getting fuel costs calculated based on East Bend’s coal usage from October. When customers notice the $.061579 number on their bill this month, it has increased almost 50% from the $.036071 number from the previous month, which was based on the amount of coal East Bend used in September.

Customers will see a higher number on their bills under the Electric Fuel Adjustment Charge when their local power plant burns more fuel.

“The Kentucky Public Service Commission reviews these costs every 6 months for prudency and accuracy and ensures the Company makes adjustments in their filings if necessary,” Thelen noted.

For many customers, the language used to explain the charge on electric company websites can be unnecessarily complex. On top of that, without some time-intensive research, the numbers behind the Electric Fuel Adjustment Charge calculations can be difficult to find online.

“Of course, when you start digging into those pages, there’s a lot of unnecessary verbiage that makes it hard to really pinpoint what the charges are,” Conley said. Conley said he is concerned that many Duke Energy Kentucky customer’s bills will be even higher in the coming months due to incoming cold weather. It’s expected to be 5 degrees throughout the day on Friday, December 23. With frigid late December temps, will this month’s cold weather be reflected in February’s electric billing cycle?

“I’m just a small drop in the bucket,” Conley said. “There are people on fixed incomes that may not account for a $500 bill. I can’t imagine people’s bills if they’re at home seven days a week. That’s a shell shock.”

Partnership between Kenton County Detention Center, Life Learning Center that aims to reduce recidivism featured on PBS

For Northern Kentucky residents who experience incarceration, the Kenton County Detention Center and the Covington-based Life Learning Center have partnered to provide resources to reduce recidivism among the formerly incarcerated. PBS NewsHour recently ran a story on both organizations as part of their Searching for Justice Series which focused on their collaborative efforts to combat Substance Use Disorder.

“It’s estimated that up to 65% of the U.S. prison population has some sort of active substance use disorder. And when these inmates are released, studies have shown that many will return to using and be arrested again within a few years,” said PBS anchor Amna Nawaz.

Formerly incarcerated individuals require a plan that can provide them with housing and employment. Without the proper re-entry programs, the cycle of recidivism can continue. In Kenton County, the partnership between the detention center and the Life Learning Center begins in jail.

Seventy percent of inmates incarcerated at the Kenton County Detention Center were arrested for drug charges directly related to their Substance Use Disorder. Inmates within the detention center can apply to participate in the jail’s Substance Abuse Program and Comprehensive Opioid Response Program.

In order to qualify for the program, individuals must be diagnosed with Substance Use Disorder, cannot be violent offenders and cannot be on the sex offender registry. Upon admittance to the program, members have access to resources such as counseling services, recovery support and medically assisted treatment. There are separate programs for men and women.

Career assessment series to be held at Covington library

What do you wanna do when you grow up? Some never find the answer, but still find meaningful career paths. A new series designed to offer clarity and guidance to students and young adults is available in Covington, with the goal of fostering and retaining the city’s future generation.

NaviGo, the college and career readiness division of Learning Grove is offering a series of career assessment sessions to help students better understand what jobs may offer them the most fulfillment and success.

The YouScience Aptitude Discovery sessions will be held at the Covington Branch of the Kenton County Public Library from 6 p.m. to 8 p.m. monthly beginning in December. The assessment will pair students with one of over 500 careers based on students interests and skills. After the initial assessment, students are invited back for follow up sessions to discuss the results and future career paths.

Funded by a grant received from the City of Covington, $85,000 has been allocated to the program with funds from the American Rescue Plan Act. This grant will help NaviGo with workforce development and job training programs, including events like these sessions.

The NaviGo assessments work in tandem with GROW NKY’s workforce pillar, collecting and distributing community resources that will positively impact the economical landscape regionally. Offering an opportunity for students to better understand themselves, the discovery sessions aim to align students with a promising career path to continue the economic growth Covington has experienced in recent years.

Walton woman found safe in Clermont County

A Walton woman recently reported missing by Kenton County Police has been found safe in Clermont County.

Sasha Thompson was reported missing on Dec. 20, and Kenton County Police Department requested the assistance of the public in locating her. The department alerted residents to her last known whereabouts in Walton and Amelia.

On Wednesday, Thompson was found safe in Clermont County, and the Kenton Coun- ty Police Department expressed their gratitude.

New program provides grants for prospective Covington homebuyers

Those looking for homes are encouraged to apply for grants of up to $15,000 under the new ARPA Mortgage Assistance Program recently approved by the Board of Commissioners.

The city has set aside an additional $500,000 from American Rescue Plan Act federal funds to help people buy homes in targeted neighborhoods. The ARPA Mortgage Assistance Program joined the growing selection of incentives the city offers potential residents and business to put down roots in Covington.

The new ARPA Mortgage Assistance Program is similar to the city’s existing Homebuyer Assistance Program, which gives deferred, forgivable loans of up to $10,000 to help low-income homebuyers with lender-required down payment and closing costs. The Homebuyer Assistance Program has been used to assist almost 400 families purchase homes since 2014.

This new program differs from the existing Homebuyer Assistance Program in a few ways.

Under the new ARPA program, homebuyers can receive a grant of up to $15,000, with no income restrictions. The existing Homebuyer Assistance Program targets low-income homebuyers, and potential residents would be excluded from that program due to higher total household income.

Additionally, the funds from the existing program could only be used for down payments and closing costs. While the new program can also be used for those costs, the city will prioritize working with lenders to buy down borrowers’ interest rates, essentially reducing the cost of a monthly mortgage.

Homes with a purchase price up to $350,000 are eligible and must be inside the eligibility zone.

Savannah Maddox withdraws bid for governor

Northern Kentucky Rep. Savannah Maddox (R-Dry Ridge) recently dropped her bid to run for governor.

Maddox originally announced her campaign in June in Burlington after teasing a “special announcement.”

“Despite traveling extensively across the Commonwealth, holding a multitude of fundraisers, making thousands of phone calls, sending direct mail, and turning over every rock possible to raise the money, it is clear that we will not have the resources we need to be successful in this campaign,” Maddox said in a statement.

With Maddox dropping out, the Republican field is slimmed down to 11. That list includes Agriculture Commissioner Ryan Quarles, Attorney General Daniel Cameron, Auditor Mike Harmon, Somerset Mayor Alan Keck, and former U.N. Ambassador Kelly Craft.

In Northern Kentucky, only one candidate stands — former attorney Eric Deters. The Grant County representative has been fervent in her opposition to policies and positions set forth by Democratic Gov. Andy Beshear and received support from self-described liberty Republicans in Kentucky to run for the state’s top seat.

Horizon Community Fund announces 2023 grant cycle

Horizon Community Funds of Northern Kentucky had its largest Community Impact Fund cycle since its founding in 2017. The organization raised $90,000 this year, exceeding the $85,000 raised last year.

The Community Impact Fund is Horizon’s flexible source of grantmaking dollars which are used for implementing long term solutions, navigating the changing community needs of Northern Kentucky and crafting rapid responses to emergencies.

Horizon is seeking letters of intent beginning Jan. 1, 2023. Letters of intent will be accepted starting Jan. 2.

For the initial stage of the process, nonprofits are asked to describe their funding proposal, including purpose, amount of funding requested, and desired impact. The letter length is limited to two pages, and is due no later than 11:59 p.m. on Tuesday, Jan. 31, 2023. To be eligible, nonprofits must be serving one of the three counties of Boone, Campbell, or Kenton in Northern Kentucky.

Please send any events, birthdays, anniversaries, engagements, weddings, or other special announcements to LINK nky via email, at news@linknky.com, with the subject line “Town Crier.” Please note, meeting times and dates are subject to change. Contact organizers for the most up-to-date information. As a reminder, this calendar covers two weeks between the publication of this edition and the first LINK Reader of 2023, which will be published on Friday, Jan. 13.

Oscar Mayer Wienermobile makes pit stop in NKY

Newport residents were recently treated to a rare sighting.

One of the six Oscar Mayer Wienermobiles rolling around the United States found its way to the Newport Kroger recently. The giant mobile sausage on a bun parked outside the grocery store and served customers between 9 a.m. to 2 p.m.

Those interested in following the Wienermobile can see future locations on Oscar Mayer’s “WhereMyDogs@” page on its website.

Dec. 30, 2022 to Jan. 14, 2023

Reminder: Government offices are closed Jan. 2 in observance of New Year’s Day.

Boone County

Dec. 30: Installation ceremony for newly elected officials, 4 p.m., Boone County Historic Courthouse, 2988 Washington St., Burlington.

Dec. 31: Countdown to fun, 11 a.m. to 1 p.m. Boone County Public Library - Main Branch, 1786 Burlington Pike, Burlington. Ring in the New Year at the library with crafts, games, a countdown and dance party. Families are asked to register in advance at bcpl.org.

Jan. 10: Boone County Fiscal Court Meeting, 5:30 p.m., Boone County Administration Building, 2950 Washington St., Burlington

Florence

Dec. 30-Jan. 1: Deck the Y’alls Lightfest, starts at 5:30 p.m., 7950 Freedom Way,

Florence

Dec. 31: New Year’s Eve party and live music with Trailer Park Floosies, 9 p.m. to midnight, Blind Squirrel, 8537 U.S. 42, Florence

Jan. 2: It Came From Beyond VHS: Retro Movie Night Kit, all day. Check out movies from a bygone era. Comes with two movies, snacks, a mystery item, while supplies last. Boone County Public Library - Florence Branch, 7425 U.S. 42, Florence

Jan. 2: In The Loop, 10 a.m. to noon. Knit or crochet with company for first time learners or experienced knitters. Boone County Public Library - Florence Branch, 7425 U.S. 42, Florence

Union

Jan. 3: Bridge, open play, noon to 3 p.m., at the Boone County Public Library - Scheben Branch, 8899 U.S. 42, Union

Jan. 4: Union City Commission Meeting, 6 p.m., 1843 Bristow Drive, Union

Jan. 4: Yoga for Healthy Weight, 10 a.m. to 11 a.m. The class has a $30 fee and participants can register online at boonecountyky.org/parks. Guests should bring their own yoga mat. Boone County Public Library - Scheben Branch, 8899 U.S. 42, Union

Jan. 4: Dance Fitness, 6:30 p.m. to 7:30 p.m. Registration is for the entire month. Register online at bcpl.org. Boone County Public Library - Scheben Branch, 8899 U.S. 42, Union

Walton

Dec. 31: New Year’s Eve Party, starts at 4 p.m., El Toro Bravo of Walton, 625 Chestnut Drive, Suite 101, Walton. Reservations are recommended

Jan. 3: Walton City Council Caucus Meeting, 6:30 p.m., 40 N. Main St., Walton

Campbell County

Jan. 4: Campbell County Fiscal Court Meeting, 9 a.m., Alexandria Courthouse, 8352 Main St., Alexandria

Jan. 10: Campbell County Planning & Zoning Meeting, 6:30 p.m., Campbell County Administration Building, 1098 Monmouth St., Newport

Alexandria

Jan. 5: Alexandria City Council Meeting, 7 p.m., Alexandria City Building, 8236 West

Main St., Alexandria (Note: This meeting was not posted at presstime; be sure to check city website)

Bellevue

Jan. 11: Bellevue City Council Meeting, 7 p.m., Bellevue City Building, 616 Poplar St., Bellevue

Dayton

Jan 3: Dayton City Council Meeting, 7 p.m., Dayton Community and Meeting Center, 625 2nd Ave., Dayton

Jan. 4: Dayton VFW Post 2899 Bingo Night, 5 p.m., 828 Sixth Ave., Dayton (every Wednesday)

Jan. 10: Dayton Board of Architectural Review Meeting, 7 p.m., Dayton Community and Meeting Center, 625 Second Ave., Dayton

Jan. 11: Dayton VFW Post 2899 Bingo Night, 5 p.m., 828 Sixth Ave., Dayton (every Wednesday)

Jan 11: Dayton Activities Board Meeting, 7 p.m., Dayton Community and Meeting Center, 625 2nd Ave., Dayton

Fort Thomas

Jan. 10: Fort Thomas Tree Commission Meeting, Mess Hall/Community Center in Tower Park, 801 Cochran Ave., Fort Thomas

Highland Heights

Jan. 3: Highland Heights City Council Meeting, 7 p.m., Highland Heights City Building, 176 Johns Hill Road, Highland Heights

Jan. 10: Highland Heights Planning and Zoning Meeting, 7 p.m., Highland Heights City Building, 176 Johns Hill Road, Highland Heights

Newport

Jan. 9: Newport City Commissioners Special Meeting, 7 p.m., Newport City Building, 998 Monmouth St., Newport

Kenton County

Jan. 10: Kenton County Fiscal Court Meeting, 5:30 p.m., 5272 Madison Pike, Independence

Covington

Jan. 3: Covington Board of Commissioners