Duke Energy Carolinas proposes reduction in annual adjustment for fuel cost with Public Service Commission of South Carolina

Rhea-AI Summary

Duke Energy Carolinas (DUK) has proposed a reduction in customer bills to account for lower fuel costs used in electricity generation. If approved by the Public Service Commission of South Carolina:

• Average monthly residential bills would decrease by 13.8% or $19.60
• Commercial customer rates would decrease by 13.8%
• Industrial customer rates would decrease by 16.2%

The decrease, effective November, would significantly offset a previously announced base rate increase. This reduction is primarily due to decreased natural gas costs and a reduced true-up component. Duke Energy makes no profit from the fuel component of rates. The company also offers various assistance programs and energy-saving tips for customers struggling with bills.

Positive

• Proposed 13.8% decrease in average monthly residential bills, potentially saving customers $19.60
• Commercial customer rates proposed to decrease by 13.8%
• Industrial customer rates proposed to decrease by 16.2%
• Reduction would offset previously announced base rate increase
• Company offers assistance programs and energy-saving tips for customers

Negative

• Proposed rate decrease subject to approval by Public Service Commission of South Carolina
• Decrease partially offsets a previously announced base rate increase

News Market Reaction

-0.57%

1 alert

-0.57% News Effect

On the day this news was published, DUK declined 0.57%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

• If approved, home energy bills would decrease 13.8%
• Company continues to connect customers to financial assistance and offer cost-saving tools

GREENVILLE, S.C., July 31, 2024 /PRNewswire/ -- Duke Energy Carolinas is seeking to reduce customer bills to account for the cost of fuel used to generate electricity for South Carolina homes and businesses. If approved by the Public Service Commission of South Carolina (PSCSC), today's average monthly residential bill would decrease by 13.8%.

The total monthly impact of these rate changes for a residential customer using 1,000 kilowatt-hours (kWh) per month would be a decrease of $19.60, from $142.23 to $122.63.

If approved by the PSCSC, rates for commercial customers would decrease 13.8% and rates for industrial customers would decrease 16.2%. The specific impact to individual customers will vary according to many factors including electric usage and customer profile dynamics.

If approved, the decrease to customer bills would begin in November and significantly offset the previously announced base rate increase approved by the PSCSC in July.

The PSCSC will consider new fuel rates in a public evidentiary hearing where it will also hear the results of an extensive audit and inquiries of the parties involved in the case to ensure an accurate adjustment is made to billed rates.

Duke Energy Carolinas serves about 660,000 households and businesses primarily in the Upstate of South Carolina, including Greenville, Spartanburg and Anderson counties. The company's other South Carolina utility – Duke Energy Progress – made its annual fuel filing in April.

Why bills will decrease

Duke Energy Carolinas makes a fuel cost-recovery filing annually in South Carolina. The fuel rate is based on the projected cost of fuel used to provide electric service to the company's customers, plus a true up of the prior year's projection compared to actual costs incurred. The PSCSC reviews fuel costs and adjusts the fuel component of customer rates accordingly. Each year, this true-up proceeding is intended to resolve the difference between projected fuel costs, and what is actually billed to the customer.

The decrease for customer bills in this year's request is primarily driven by the decreased cost of natural gas year over year, plus a reduced true-up component since the previous fuel cost-recovery filing.

Duke Energy Carolinas makes no profit from the fuel component of rates – actual costs are passed through directly to customers.

Helping customers save

Customers struggling to pay their energy bills might qualify for assistance from various government and nonprofit programs for utility bills and other household expenses, or from the Share the Light Fund, a Duke Energy program that provides energy assistance. Duke Energy also offers programs and resources to help customers, as well as flexible payment arrangements to help customers experiencing uncertainty keep their accounts in good standing.

To help all customers take control of their energy use, Duke Energy offers energy-saving tips and innovative efficiency programs for every budget. For example, the Home Energy House Call is a free in-home energy assessment that provides customers more information about how they use energy and strategies to save money on their monthly bill. To learn more about these programs, visit duke-energy.com/savings.

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 Twitter, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.

24-Hour media line: 800.559.3853

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SOURCE Duke Energy

FAQ

What is the proposed rate decrease for Duke Energy Carolinas (DUK) residential customers in South Carolina?

Duke Energy Carolinas has proposed a 13.8% decrease in average monthly residential bills, which would save customers approximately $19.60 per month.

When would the proposed Duke Energy Carolinas (DUK) rate decrease take effect?

If approved by the Public Service Commission of South Carolina, the proposed rate decrease would take effect in November 2024.

What is the main reason for Duke Energy Carolinas (DUK) proposed rate decrease?

The primary reason for the proposed rate decrease is the reduced cost of natural gas year over year, plus a reduced true-up component since the previous fuel cost-recovery filing.

How many customers does Duke Energy Carolinas (DUK) serve in South Carolina?

Duke Energy Carolinas serves about 660,000 households and businesses primarily in the Upstate of South Carolina, including Greenville, Spartanburg and Anderson counties.