(Harrison, Oh.) - The Southwest Local and Three Rivers school districts could be hit hard if Duke Energy wins an appeal of their property taxes.

Duke Energy officials announced last week that the company believes it has been paying $40 million too much in taxes. Unless an appeal by the company is successful in reducing its tax bill, Duke warns the cost could be passed on to customers.

If Duke wins the appeal, more than 700 districts across southern Ohio would see a reduction in tax funding.

Southwest Local Schools would lose $266,000 in funding. Three Rivers Schools would take a hit of $750,000.

Ohio school districts are required to submit their 2010-11 budgets to the state by June 30, but such large reductions in funding would likely cause many districts to enter budget shortfalls.