Duke Energy Carolinas customer rates drop 6.2% on Jan. 1 due to falling fuel prices

Rhea-AI Summary

Duke Energy Carolinas announced a 6.2% decrease in electric rates effective January 1, driven primarily by falling fuel prices. A typical residential customer using 1,000 kWh monthly will see bills drop by $8.96, from $144.31 to $135.35, which is 22% below the national average. Commercial customers will benefit from an 11.5% decrease, while industrial customers will see a decrease of less than 1%.

The rate reduction includes an 8.8% decrease due to falling fuel prices, a 0.6% decrease from nuclear production tax credits (IRA), and minor adjustments to existing riders. These reductions more than offset a previously approved 2.9% base rate increase. The company serves about 2.2 million households and businesses in central and western North Carolina.

Positive

• 6.2% reduction in residential customer rates
• 11.5% decrease for commercial customers
• Residential rates $466/year below national average
• 8.8% decrease from falling fuel prices
• Additional 0.6% savings from nuclear production tax credits

Negative

• 2.9% increase in base rates implemented

News Market Reaction

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+0.03% News Effect

On the day this news was published, DUK gained 0.03%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

• Decrease incorporates benefits from federal Nuclear Production Tax Credits, along with other rider adjustments
• Annual bills for typical residential customer are $466 below national average

CHARLOTTE, N.C., Dec. 31, 2024 /PRNewswire/ -- Duke Energy Carolinas customers in North Carolina will see their electric rates fall starting Jan. 1 as part of an annual adjustment for the cost of fuel used to generate electricity at its power plants, along with other rider adjustments.

A typical residential customer in North Carolina using 1,000 kilowatt-hours (kWh) per month will see an overall decrease of $8.96, or about 6.2%, from current rates, falling from $144.31 to $135.35. That is 22% below the national average of $174.21 – a difference of approximately $466 per year.

Commercial customers will benefit from an average decrease in their bills of about 11.5%, and industrial customers will see an average decrease of less than 1%.

Duke Energy Carolinas serves about 2.2 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad.

Elsewhere in the state, Duke Energy Progress customers are already benefiting from a 4.5% decrease that went into effect on Dec. 1.

Customer Savings Driven by Falling Fuel Prices

To ensure accurate rates, the North Carolina Utilities Commission (NCUC) annually reviews the fuel costs needed to generate electricity for customers, along with rider updates for state programs to encourage clean energy adoption and reduce energy use. The commission approved the following adjustments:

• A decrease of 8.8% to adjust for falling fuel prices.
• A decrease of 0.6% resulting from nuclear production tax credits from the Inflation Reduction Act (IRA); more than half of Duke Energy's power in the Carolinas comes from carbon-free nuclear.
• Adjustments of less than 1% to existing riders for customer assistance, storm securitization, and energy efficiency and demand-side management programs to lower energy use.
• An increase of 2.9% to base rates, as approved last January by the NCUC in its 2024 multiyear rate case order.

The collective result is a 6.2% rate reduction for typical residential customers – in other words, the decrease from fuel more than offset the second-year increase to base rates.

Duke Energy works to actively manage fuel contracts to keep costs as low as possible for customers. Bills reflect actual fuel costs – customers pay what we pay. Learn more at Fuel Costs & Your Bill.

Duke Energy Carolinas

Duke Energy Carolinas, a subsidiary of Duke Energy, owns 20,700 megawatts of energy capacity, supplying electricity to 2.9 million residential, commercial and industrial customers across a 24,000-square-mile service area in North Carolina and South Carolina.

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. 

Duke Energy is executing an ambitious clean energy transition, keeping reliability, affordability and accessibility at the forefront as the company works toward net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company is investing in major electric grid upgrades and cleaner generation, including expanded energy storage, renewables, natural gas and nuclear.  

More information is available at duke-energy.com and the Duke Energy News Center. Follow Duke Energy on X, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.

Contact: Bill Norton
24-hour media line: 800.559.3853

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SOURCE Duke Energy

FAQ

How much will Duke Energy (DUK) residential customers save on their electric bills in 2024?

Duke Energy Carolinas residential customers will save $8.96 per month (6.2%) on average, with bills dropping from $144.31 to $135.35 for typical 1,000 kWh usage.

What is driving the January 2024 rate decrease for Duke Energy (DUK) customers?

The rate decrease is primarily driven by falling fuel prices (8.8% reduction), nuclear production tax credits (0.6% reduction), and various rider adjustments, offsetting a 2.9% base rate increase.

How do Duke Energy's (DUK) new rates compare to the national average?

Duke Energy's new rates are 22% below the national average, saving customers approximately $466 per year compared to the national average of $174.21 per month.

What is the rate reduction for Duke Energy (DUK) commercial customers in 2024?

Commercial customers will see an average decrease of 11.5% in their bills starting January 1, 2024.

How many customers will benefit from Duke Energy's (DUK) rate decrease in the Carolinas?

The rate decrease will benefit approximately 2.2 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad.