Proposed Duke Energy Carolinas Rate Hike Is Much Smaller Now
Electric customers in the Upstate may face a much smaller increase in their monthly bills starting next March, pending approval from state regulators. Residential users consuming 1,000 kilowatt-hours per month would see their bills rise by just 84 cents, from $136.82 to $137.66.
This marks a significant reduction from Duke Energy’s original proposal, which would have increased bills by $10.38 to $147.19. The overall annual revenue increase for Duke after the settlement is $74.2 million, about half of the initially proposed $150.5 million.
Duke Energy Carolinas explained the need for the rate hike is mainly to cover costs related to upgrading grid reliability and resiliency. These improvements include investments in transmission and distribution systems, as well as funding increased capital expenses.
The partial settlement, filed with the South Carolina Public Service Commission on November 11, was negotiated with multiple stakeholders. These included environmental groups, consumer advocates, small businesses, and state agencies representing the public interest, ensuring a balanced approach.
The settlement introduces important provisions that promote energy efficiency and clean energy programs, allowing customers to better manage their bills. Kate Mixson, senior attorney at the Southern Environmental Law Center, highlighted how these provisions can help South Carolinians reduce costs amid rising living expenses.
Notably, Duke must participate in a future proceeding to address potential cost protections for residents, especially given the growing demand from large users like data centers. Programs encouraging weatherization and solar plus battery installations are part of this initiative.
Two credit sources will offset part of the rate increase. Duke expects a $100 million two-year federal tax credit flowback for renewable energy production, including solar, nuclear, and hydroelectric sources. Additionally, shareholders will contribute $750,000 annually for two years.
Ryan Mosier, Duke Energy spokesperson, emphasized that the agreement supports meeting the energy needs of a growing state while maintaining reliability and fostering economic growth. However, the timing is challenging, as South Carolina faces its highest cost of living in history.
In addition to this smaller hike, a previous rate increase approved in August will take full effect on August 1, further impacting customers. Despite rising energy costs nationally, South Carolina’s electric bills are projected to see some of the steepest increases in the coming decade, affected partly by changes to federal clean energy incentives.
Read more at: www.postandcourier.com
