Piedmont Natural Gas reaches rate case agreement with key consumer and industrial groups in North Carolina
Rhea-AI Summary
Piedmont Natural Gas, a Duke Energy (NYSE: DUK) subsidiary, has reached an agreement with consumer and industrial groups in North Carolina regarding its rate review request. The agreement, subject to approval by the North Carolina Utilities Commission, will result in a net annual revenue increase of $88 million, about 40% less than initially requested. Key points include:
- Average residential customers will pay about $7.50 more per month
- The agreement allows a 9.80% return on equity
- Implementation is planned for November 2024
- Concurrent rate reductions for natural gas costs and income tax credits will help mitigate overall impact
- The agreement supports investments in safety, reliability, and customer growth
Piedmont Natural Gas serves over 810,000 customers in North Carolina and offers assistance programs for those in need.
Positive
- Agreement reached with key consumer and industrial groups, potentially expediting regulatory approval
- Net annual revenue increase of $88 million, supporting investments in safety, reliability, and customer growth
- Concurrent rate reductions for natural gas costs and income tax credits to mitigate overall impact on customers
- Return on equity set at 9.80%, providing a stable return for investors
- Piedmont ranked No. 1 in customer satisfaction with residential natural gas service in the South among large utilities
Negative
- Average residential customers will face a bill increase of $7.50 per month or $90 per year
- The rate increase comes during challenging economic times, potentially affecting customer affordability
- The approved revenue increase is 40% less than originally requested, potentially impacting future investment plans
News Market Reaction
On the day this news was published, DUK gained 0.33%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Agreement supports significant investments for safety, reliability, customer growth
- Request included rate reductions for natural gas costs and income tax payment credits passed to customers
Piedmont plans to implement the increase in November 2024. Piedmont also requested concurrent rate reductions for pass-through natural gas costs and to accelerate the flowback to customers of the remaining eligible balance of excess deferred income taxes, which will help mitigate the overall impact to customer bills. The average residential customer in
"We appreciate the consideration the Public Staff and all other parties have shown toward our customers and Piedmont's business needs," said Brian Weisker, senior vice president and president of Piedmont Natural Gas. "Raising rates is never a decision we take lightly, particularly during challenging economic times. These investments in strengthening and enhancing our natural gas delivery system will help ensure we continue to provide safe, reliable service to our customers while meeting the rising demand for natural gas throughout our
The agreement is subject to the review and approval of the North Carolina Utilities Commission. If the agreement is approved, the net annual increase in revenues for Piedmont will be approximately
The agreement was developed in collaboration with the Public Staff of the North Carolina Utilities Commission, which represents the interests of consumers, the Carolina Utility Customers Association, and the Carolina Industrial Group for Fair Utility Rates IV.
The agreement allows Piedmont Natural Gas a return on equity of
The stipulated rates also impact commercial and industrial customers. To learn more about Piedmont's proposed rate increase, visit piedmontng.com/rates.
Level out your bill with the Equal Payment Plan (EPP) program
Piedmont's free EPP program helps customers manage their budgets by leveling out a customer's natural gas bills, allowing them to pay a predictable, equal monthly amount to help avoid billing surprises. Piedmont determines this payment by adding up a customer's annual natural gas usage and then dividing it into the same payment amount each month. Learn more here.
Energy-saving tips and tools
Piedmont Natural Gas also offers a variety of energy-saving tips and tools to help customers and our communities identify ways to save money and energy all year long. These programs and tools help customers understand what factors are impacting their natural gas bills and emphasize specific actions they can take to prepare and reduce the impacts of higher usage.
Assistance for customers in need
Share the Warmth provides funds to local agencies to assist families with their utility bills, no matter the source of energy they use. Contact information for approved assistance agencies across Piedmont's service area is available at piedmontng.com/ShareTheWarmth.
The Low Income Energy Assistance Program (LIEAP) provides assistance to pay for natural gas, electric and other energy sources customers use in their homes.
Piedmont says anyone in need should apply for this and other newly available programs to see if they qualify. For more information, go to piedmontng.com/AssistancePrograms.
Piedmont Natural Gas
Piedmont Natural Gas, a subsidiary of Duke Energy (NYSE: DUK), distributes natural gas to more than 1.2 million residential, commercial, industrial and power generation customers in
Media contact: Jason Wheatley
Media line: 877.348.3612
jason.wheatley@duke-energy.com
X: @PNG_JasonW
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SOURCE Piedmont Natural Gas
FAQ
When will Piedmont Natural Gas implement the new rates in North Carolina?
How much will the average residential customer's bill increase under the new Piedmont Natural Gas rates?
What is the approved return on equity for Piedmont Natural Gas in the North Carolina rate case agreement?
How many customers does Piedmont Natural Gas serve in North Carolina (DUK)?
What assistance programs does Piedmont Natural Gas offer for customers struggling with bills?
