May 16, 2025
COLUMBUS — The Public Utilities Commission of Ohio (PUCO) approved Duke Energy Ohio’s Electric Security Plan – but declined to require the utility to adopt any demand response (DR) or broader demand-side management (DSM) programs that the utility proposed, despite mounting evidence that these tools are effective for managing grid reliability and reducing customer costs.
Duke initially proposed a DSM program that would invest $75 million, apply to all Duke customers, and produce $126 million in savings. PUCO’s ruling approved a modest $7 million low-income energy efficiency program, but left more impactful, cost-effective options on the table.
The decision comes at a critical moment for Ohio’s energy future. Capacity prices in PJM, the regional grid operator, have surged and are projected to keep climbing – driven by increased electricity demand from data centers, electrification, and economic development. In the face of this growth, demand-side strategies like DR and energy efficiency are some of the fastest, lowest-cost ways to ease strain on the grid and protect consumers from volatile prices.
Demand response programs pay customers to reduce electricity use during peak periods – like turning up the thermostat a few degrees on hot summer afternoons or delaying the use of major appliances when the grid is stressed. These small, coordinated changes help balance supply and demand at a fraction of the cost of building new power plants or expanding transmission lines.
Ohio continues to underinvest in broader efficiency efforts that could also serve to lower energy bills, reduce waste, and make the grid more resilient – all goals that are consistent with the state’s current energy priorities.
“Good energy policy manages both the supply side and the demand side,” said Rob Kelter, managing attorney with the Environmental Law & Policy Center. “House Bill 15 made great strides in boosting energy supply, but PUCO missed a critical opportunity today to complement that with smart, cost-effective demand-side programs. As electricity use grows and prices rise, Ohio can’t afford to ignore the other half of the equation.”