Frigid winter resulted in higher-than-expected fuel costs
If approved, new rates would begin to go into effect in October
GREENVILLE, S.C. -- Duke Energy Carolinas today made its annual filing with the Public Service Commission of South Carolina (PSCSC) for the costs associated with the purchase of fuel to generate electricity at its power plants.
The PSCSC reviews fuel costs and adjusts the fuel component of customer rates accordingly. By law, the company makes no profit from the fuel component of rates.
If approved, the total monthly impact for a typical residential customer in South Carolina using 1,000 kilowatt-hours (kWh) per month would be an increase of $4.75. Commercial customers would see an average increase in the fuel charge of about 6.1 percent, and industrial customers would receive an average increase of about 8.0 percent.
Natural gas prices rose this winter due to heavy demand for residential, commercial, and industrial usage to meet customer energy needs during prolonged freezing conditions. These increased prices, coupled with high demand, contributed to an under collection for the cost of fuel over the past year. The elevated demand for power resulted in the highest energy usage week on record in the Carolinas.
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. If approved by the PSCSC, the new fuel rates would go into effect Oct. 1.
Duke Energy Carolinas serves customers primarily in the Upstate of South Carolina.
Helping customers save
Duke Energy Carolinas works to actively manage its fuel contracts to keep fuel costs as low as possible. Savings achieved from the joint dispatch of Duke Energy's generation fleet in the Carolinas also help to minimize the company's fuel costs.
Duke Energy Carolinas is also committed to helping customers take control of their energy use and manage their bills. The company offers energy-saving tips and innovative efficiency programs for every budget to help customers realize additional savings. For example, the Home Energy House Call is a free in-home energy assessment, valued at $180, designed to give Duke Energy customers more information about how they use energy in their home 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 owns nuclear, coal, natural gas, renewables and hydroelectric generation. That diverse fuel mix provides approximately 19,600 megawatts of owned electric capacity to about 2.5 million customers in a 24,000-square-mile service area of North Carolina and South Carolina.
Duke Energy Carolinas is a subsidiary of Duke Energy (NYSE: DUK).
Headquartered in Charlotte, N.C., Duke Energy is one of the largest energy holding companies in the U.S., with approximately 29,000 employees and a generating capacity of 49,500 megawatts. The company is transforming its customers' experience, modernizing its energy grid, generating cleaner energy and expanding its natural gas infrastructure to create a smarter energy future for the people and communities it serves.
The company's Electric Utilities and Infrastructure unit serves approximately 7.6 million retail electric customers in six states – North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. Its Gas Utilities and Infrastructure unit distributes natural gas to approximately 1.6 million customers in five states – North Carolina, South Carolina, Tennessee, Ohio and Kentucky. Its Commercial Renewables unit operates a growing renewable energy portfolio across the U.S.
A Fortune 125 company, Duke Energy was named to Fortune's 2018 "World's Most Admired Companies" list and Forbes' 2018 "America's Best Employers" list.
More information about the company is available at duke-energy.com. The Duke Energy News Center includes news releases, fact sheets, photos, videos and other materials. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.
Contact: Ryan Mosier