Duke Energy Progress proposes more than $5 in monthly savings for N.C. customers

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CHARLOTTE, N.C. -- Duke Energy Progress customers in North Carolina will see more than $5 in savings on their monthly energy costs in 2017 if the company's annual fuel cost-recovery filings receive approval from the North Carolina Utilities Commission (NCUC).

Overall energy costs would decrease about 4.9 percent for residential customers, 6.3 percent for commercial customers and 5.7 percent for industrial customers -- keeping the cost per kilowatt-hour about 20 percent below the national average and putting more money back into customers' homes and businesses.

What's driving customer savings
Duke Energy Progress today made its annual filings with the NCUC for costs associated with fuel, cost recovery under the Joint Agency Asset Rider (JAAR), and implementation of energy efficiency (EE) and demand-side management (DSM) programs.

The total monthly impact of all rate changes for a typical residential customer using 1,000 kilowatt-hours (kWh) per month would be a decrease of $5.38.

If approved, as of Jan. 1, 2017, the charge for a typical residential customer using 1,000 kWh of electricity would decrease from $110.04 to $104.66 per month.

Through a balanced energy mix, Duke Energy is able to create savings for customers and maintain rates that are below the national average. The main reasons for the proposed overall decrease include:

  • Total fuel costs projected for the upcoming year are declining due to a drop in commodity prices.
  • In addition, a decrease in the prior period true-up of fuel costs is included in the proposed fuel rate.
  • Fuel cost savings also are associated with Duke Energy Progress' purchase of North Carolina Eastern Municipal Power Agency's ownership share in certain generation assets, which closed in July 2015.

Duke Energy Progress 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.

Energy efficiency
The company offers a broad portfolio of innovative programs designed to help customers become more energy efficient and realize savings, as well as potentially delay or eliminate the need for the company's investment in new power plants.

Duke Energy Progress filed to recover the costs associated with implementing these programs designed to help increase efficiency, reduce energy consumption and save customers money on their energy bills. Proposed increases in the amount to be recovered are primarily due to new program offerings, increased customer participation and related costs. This will result in an increase in rates of $1.55 per month for residential customers using 1,000 kWh of electricity per month. If approved, the new EE and DSM rates would begin Jan. 1, 2017.

To learn more about energy efficiency programs, visit www.duke-energy.com/savings.

Additionally, the company filed a Joint Asset Agency Rider to recover costs associated with the purchase of the North Carolina Eastern Municipal Power Agency's (NCEMPA) ownership interest in several Duke Energy Progress generating plants.

Duke Energy Progress will also submit a filing to the NCUC based on the utility's compliance with the state's renewable energy portfolio standard later this month.

About Duke Energy
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 7.4 million electric customers located in six states in the Southeast and Midwest, representing a population of approximately 24 million people. Its Commercial Portfolio and International business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

Headquartered in Charlotte, N.C., Duke Energy is an S&P 100 Stock Index company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com

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Contact: Meredith Archie