-
Increased demand following the COVID-19 shutdown coupled with rising fuel costs, which Duke Energy does not benefit from, will increase customer prices
-
If approved, customers will see their monthly bills increase starting in October
GREENVILLE, SC – Duke Energy Carolinas made its annual filing July 29 with the Public Service Commission of South Carolina (PSCSC) on the costs associated with the fuel used to generate electricity at its power plants.
Duke Energy Carolinas is seeking to recoup fuel costs as part of its annual adjustment to the fuel used to power South Carolina homes and businesses. The company makes no profit from the fuel component of the fares.
PSCSC reviews the fuel costs required to serve customers to ensure an accurate adjustment is made each year. If approved, the new fuel tariffs will take effect on October 1, 2022.
If approved, typical residential customers using 1,000 kilowatt-hours (kWh) per month would see their bills rise from the current $119.32 to $135.07, an increase of $15.75 or 13.2 percent .
Commercial customers would see an average increase in their bills of about 18.3 percent and industrial customers would get an average increase of about 24.4 percent.
Each year, this “true improvement” process aims to resolve the difference between forecasted fuel costs and what is billed to the customer. Some years, the company reimburses customers and lowers the fee on their energy bills; in other years – like this year – customers reimburse the company.
What drives the proposed increase?
The increase in energy demand resulted in a significant increase in fuel needs for power generation, accompanied by a drastic increase in fuel prices in 2021 due to tight supplies.
The sharp rise in commodity prices contributed to a $145 million recovery over the past year, as fuel prices rose sharply shortly after the company’s annual filing. South Carolina’s fuel clause does not allow utilities to adjust fuel rates during the billing period to prevent such customer underpayment, so the proposed fuel rates include recovery of this shortfall.
Duke Energy Carolinas serves approximately 640,000 customers primarily in the Upstate region of South Carolina, including Greenville, Spartanburg and Anderson counties. The company’s other South Carolina unit — Duke Energy Progress — made its annual fuel deposit in April.
Helping customers
Duke Energy works to actively manage its fuel contracts to keep fuel costs as low as possible for customers. The savings achieved by co-locating Duke Energy’s generating fleet to the Carolinas also help lower the company’s fuel costs.
Consumers struggling to pay their energy bills may also qualify for help from various government and non-profit programs for utility bills and other household expenses. Customers can learn about agencies serving their area by calling 211, texting “electric” to 211211 or visiting sc211.org online. This free service helps connect customers with local community agencies that provide assistance with a wide range of needs, including help with energy bills.
Duke Energy also offers programs and resources to help customers experiencing uncertainty, including flexible payment options and the Share the Light Fund, a Duke Energy program that provides energy assistance.
Duke Energy offers energy-saving tips and innovative efficiency programs for every budget to help customers take control of their energy use. For example, the Home Energy House Call is a free home energy assessment that provides customers with more information about how they use energy 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, a subsidiary of Duke Energy, owns 20,100 megawatts of power capacity, supplying electricity to 2.8 million residential, commercial and industrial customers in a 24,000-square-mile service area in North Carolina and South Carolina.
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, NC, is one of America’s largest energy companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and together own 50,000 megawatts of power capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 28,000 people.
Duke Energy is implementing an aggressive clean energy transition to achieve its goals of net zero methane emissions from its natural gas business and at least a 50% reduction in carbon from electricity generation by 2030 and net emissions carbon zero by 2050. The 2050 net zero targets also include scope 2 and certain scope 3 emissions. In addition, the company is investing in major improvements to the electric grid and energy storage, and is exploring technologies zero-emission energy production, such as hydrogen and advanced nuclear ones.
Duke Energy was named to Fortune’s 2022 “World’s Most Admired Companies” and Forbes’ “America’s Best Employers.” More information can be found at duke-energy.com. The Duke Energy News Center features news releases, fact sheets, photos and videos. Duke Energy Lighting features stories about people, innovations, community topics and environmental issues. Follow Duke Energy at I tweetLinkedIn, Instagram and Facebook.
24-hour media hotline: 800.559.3853
