Duke Energy Carolinas' residential customers in North Carolina to see slight drop in rates

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CHARLOTTE, N.C. - Duke Energy Carolinas'’ customers in North Carolina will pay less for electricity starting this month.

As approved by the N.C. Utilities Commission (NCUC), the monthly bill for a residential customer using 1,000 kilowatt-hours (kWh) of electricity decreased by 11 cents per month or approximately 0.1 percent, effective Sept.1.

The change in rates reflects increases or decreases in three separate charges. These changes, based on a residential monthly 1,000 kWh bill, include:

  • A decrease of 12 cents per month for the amount customers are charged for the coal inventory rider. The coal inventory rider was terminated in March. A decrement rider is now in place to return over-collected funds back to customers.
  • An increase of 43 cents per month for costs associated with the N.C. Renewable Energy Portfolio Standards (NC REPS).
  • A decrease of 42 cents per month for the amount customers are charged for fuel used to generate electricity, along with two non-fuel rate decrement riders.

The utility makes a fuel cost-recovery filing annually in North 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. The NCUC 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.

On Aug. 25, 2014, the NCUC approved the company'’s request to return over-collected funds generated by the 2013 coal inventory rider. The coal inventory rider sought to recover carrying costs associated with higher than normal coal inventory levels. That rider was terminated in March 2014 after coal inventory levels returned to normal.

Also included in the rate changes is an increase in the REPS rider that adjusts the renewable energy portfolio standards compliance rates for customers in North Carolina. Under North Carolina’'s energy law passed in 2007, Duke Energy Carolinas was required by 2012 to supply customers with renewable energy equivalent to 3 percent of retail sales. The utility met that requirement, which increases to 12.5 percent in 2021.

Duke Energy Carolinas, a subsidiary of Duke Energy (NYSE: DUK), provides electricity and related services to nearly 2.4 million customers in North Carolina and South Carolina.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.