Otis Singleton
Duke Energy and Orlando Utilities Commission (OUC) are two energy providers that serve different areas of Florida. Duke Energy serves central and northern Florida, while OUC serves downtown Orlando, the airport, and St. Cloud. There are notable differences between the two providers in terms of service quality, reliability, and cost. While Duke Energy has a larger service area and more customers, OUC is known for its focus on reducing outage times and being The Reliable One. Cost-wise, Duke Energy has been criticised for increasing rates and expensive bills, with some customers reporting exponential increases in their monthly bills. On the other hand, OUC strives to maintain competitive rates, although its costs are also influenced by factors such as peak energy demand.
| Characteristics | Values |
|---|---|
| Service Area | Duke Energy: Central Florida and North OUC: Downtown Orlando, Airport, St. Cloud |
| Customer Service | Duke Energy: Poor service, frequent outages OUC: Reliable, quick resolution of outages |
| Ownership | Duke Energy: Private company OUC: Owned by the City of Orlando |
| Pricing | Duke Energy: Higher rates, exponential bill increases OUC: Competitive rates, 30% cheaper than Duke |
| Low-Income Programs | Duke Energy: Neighborhood Energy Saver program OUC: Provided the least amount of savings to low-income customers |
| Efficiency | Duke Energy: Leader in energy efficiency OUC: Efficiency savings plummeted in 2019 |
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What You'll Learn
- Duke Energy's costs are rising due to increasing fuel prices and corporate bonuses
- OUC is non-profit and owned by the City of Orlando, which may impact pricing
- OUC's efficiency savings have reduced in recent years
- Duke serves more customers, which impacts costs and service quality
- OUC has a better track record for reducing outage times
Duke Energy's costs are rising due to increasing fuel prices and corporate bonuses
Duke Energy Florida has proposed adjustments to its fuel and capacity rates, which will impact 2023 rates. This is due to rising fuel costs, particularly natural gas prices, and storm restoration costs. The company has also invested in solar power, aiming for 1,500 megawatts of solar energy by 2024. However, natural gas remains its primary fuel source. Duke Energy Florida has also implemented a rate mitigation plan to spread the recovery of unrecovered fuel costs and passed on corporate tax savings to customers, resulting in a decrease of $1.90 per 1,000 kilowatt-hours in 2023.
Duke Energy Progress, serving North Carolina and South Carolina, has also proposed an increase in monthly fuel costs for its South Carolina customers, citing an under-collection of projected fuel costs as the main reason. This increase will affect all Duke Energy Progress customers in the state. The company actively manages its fuel contracts and utilizes savings from joint dispatch to minimize fuel costs.
Duke Energy has faced criticism from customers in certain areas, with some reporting issues with power outages and tree trimming. However, others have praised the company for its low-income assistance programs and energy-saving tools.
Duke Energy's costs are rising due to increasing fuel prices, and the company is taking steps to mitigate the impact on customers. The company has proposed rate adjustments and fuel cost increases to address these challenges. While Duke Energy also offers assistance programs and energy-saving measures, some customers have expressed dissatisfaction with their experiences.
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OUC is non-profit and owned by the City of Orlando, which may impact pricing
OUC, or the Orlando Utility Commission, is a non-profit entity owned by the City of Orlando. This means that, unlike for-profit companies, OUC's primary goal is not to maximise profits. Instead, it focuses on providing reliable and affordable electricity to its customers.
Being owned by the City of Orlando gives OUC a unique structure and set of priorities. Its operations are transparent, with public board meetings, and it is accountable to the local government and the community it serves. This level of transparency and accountability can impact pricing decisions. OUC's rates are determined with the community's best interests in mind, rather than solely focusing on profit maximisation.
OUC strives to maintain competitive rates while also investing in a sustainable future. Their rates are structured based on customers' usage patterns and demand. For businesses, OUC's rates are based on the highest 15-minute kW demand used during each billing period, known as peak demand. This structure incentivises efficient energy usage and helps OUC manage its infrastructure and supply needs.
In contrast, Duke Energy, a for-profit company, has faced criticism for increasing rates and imposing surcharges. Duke Energy's rates are influenced by factors such as stress on the electrical grid and fuel costs. While they do offer low-income assistance programs, these have been described as modest in their financial impact.
OUC's non-profit status and local ownership may contribute to more stable and competitive pricing. Their focus on reliability and community needs could be a key factor in customers' choices between the two providers.
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OUC's efficiency savings have reduced in recent years
OUC, or the Orlando Utility Commission, is a municipal utility owned and operated by the City of Orlando. In 2020, it was reported that OUC's efficiency savings had reduced by more than half compared to its performance in the previous two years. This reduction in efficiency savings is concerning, especially considering Orlando's commitment to transitioning to 100% renewable energy.
OUC's performance in 2019 was propped up by commercial lighting and the city's conversion to LED street lights. However, when it comes to serving low-income customers, OUC has been falling short in recent years. Its program for low-income customers served 588 customers in 2015, but this number dropped to just 6 customers in 2018, and only slightly recovered to 76 in 2019. This is a tiny fraction of eligible customers and is inadequate given that OUC serves an area with the highest percentage of low-income residents.
In comparison to other utilities in Florida, OUC's performance in 2019 was lacklustre. TECO, for example, delivered more total savings than any other Florida utility and served a larger percentage of eligible low-income customers. Duke Energy, which serves central and northern Florida, also reached a greater percentage of eligible low-income customers through its Neighborhood Energy Saver program.
Despite these setbacks, OUC has demonstrated a commitment to affordability and reliability. In 2025, OUC announced a 5% reduction in customer electric bills, citing a desire to provide value and reliable service. OUC has also shown a commitment to achieving net-zero carbon emissions by 2050 and has invested in sustainability and energy efficiency resources.
Overall, while OUC's efficiency savings have reduced in recent years, the company appears to be taking steps to improve its performance and meet the needs of its customers.
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Duke serves more customers, which impacts costs and service quality
Duke Energy serves a much larger customer base than the Orlando Utilities Commission (OUC). Duke Energy operates in central and northern Florida, while OUC serves downtown Orlando, the airport, and St. Cloud. Due to its larger service area, Duke Energy likely has a higher number of customers without power during outages, which can impact costs and service quality.
The impact of a larger customer base on costs and service quality can be observed in several ways. Firstly, a larger customer base can strain Duke Energy's infrastructure, leading to higher costs for maintenance and upgrades. This can also result in a slower response to power outages and other service issues, affecting overall service quality.
Secondly, Duke Energy's larger customer base may result in a higher demand for electricity, particularly during peak hours. This increased demand can lead to higher electricity rates for customers as the company needs to generate and supply more power. Additionally, a larger customer base may result in a higher number of customer service inquiries, potentially impacting the responsiveness and quality of customer support.
Furthermore, Duke Energy's size and customer reach can influence its operational costs and efficiency. Serving a larger area and a higher number of customers can result in higher transmission and distribution costs. Additionally, Duke Energy may need to invest more in infrastructure upgrades and maintenance to ensure reliable service for all its customers.
On the other hand, a larger customer base can also provide economies of scale for Duke Energy, potentially driving down costs per customer. A larger customer base may also allow for more investment in innovative programs and technologies, such as their Low-Income Weatherization Assistance program, which offers substantial financial savings for customers struggling to pay their bills.
In summary, Duke Energy's larger customer base can impact costs and service quality in various ways. While a larger customer base can strain infrastructure and increase costs, it can also provide opportunities for economies of scale and innovative programs. The impact of Duke Energy's size is felt by customers in terms of electricity rates, service responsiveness, and the availability of customer support.
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OUC has a better track record for reducing outage times
OUC, or Orlando Utilities Commission, has established a strong reputation for its proactive approach to reducing outage times, earning the title of "The Reliable One." This track record of reliability sets it apart from other providers in the region, including Duke Energy.
OUC's commitment to minimizing outages is evident in its swift response to restoring services during unexpected disruptions. They achieve this through various strategies, such as isolating damaged circuits during stormy weather to prevent larger outages. By doing so, OUC ensures that minor incidents, such as dimming or flickering lights, do not escalate into more extensive issues. This proactive approach has fostered a culture of reliability, with OUC crews known for their quick response times and efficient restoration processes.
In contrast, Duke Energy customers have expressed frustration with their experiences during power outages. Reports suggest that Duke Energy's service quality declined after the Progress merger, leading to longer outage times and a lack of prompt resolution. Duke Energy's larger service area, covering central Florida and the north, poses challenges in promptly addressing outages across a dispersed customer base.
One notable advantage for OUC is its smaller coverage area, encompassing downtown Orlando, the airport, and St. Cloud. This compact territory enables OUC to mobilize resources more efficiently and effectively. Additionally, OUC's public ownership structure allows for greater community involvement and transparency. Customers can actively engage with their representatives to drive changes and improvements, fostering a sense of collective accountability.
Furthermore, OUC offers a range of convenient tools to report and manage outages. Customers can utilize the OUC Outage Map to access real-time information about outage sizes, locations, and estimated restoration times. This level of transparency empowers customers to make informed decisions and plan accordingly during unexpected disruptions.
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Frequently asked questions
OUC is 30% cheaper than Duke Energy, however, the cost of your bill will depend on how much power your equipment requires and how much of your equipment is running at a given time.
The more equipment that operates simultaneously, the higher the demand, which will be reflected in your bill.
Yes, reducing the amount of equipment running at the same time can lower your bill. Additionally, renewable resources are becoming more competitive in the long run, so switching to renewable energy sources may help reduce costs.
