All parties reach agreement in Duke Energy Progress rate review request in South Carolina

Rhea-AI Summary

Duke Energy Progress has secured a comprehensive agreement with various parties in South Carolina regarding its rate review request. If approved, the agreement will result in a $10.95 monthly increase for the typical residential customer using 1,000 kWh, with a total increase of $52 million—41% less than the initially requested $89 million. This agreement also addresses coal ash basin closure costs and allows for a 9.6% return on equity. The decision supports the company’s efforts to enhance reliability and customer experience.

Positive

• Agreement reduces the initial requested rate increase from $89 million to $52 million.
• Addresses recovery of coal ash basin closure costs.
• Allows Duke Energy Progress a 9.6% return on equity.

Negative

• None.

• Agreement supports company's efforts to improve resiliency, maintain reliability and improve the customer experience

GREENVILLE, S.C., Jan. 12, 2023 /PRNewswire/ -- Duke Energy Progress has reached a comprehensive agreement with all parties, including consumer, environmental and industrial groups in South Carolina, for its rate review request filed in September of last year.

If the agreement is approved by the Public Service Commission of South Carolina, the company plans to implement the increase beginning April 1, with the typical residential customer in South Carolina using 1,000 kilowatt hours of electricity paying about $10.95 more per month. The agreement will also impact the rates of commercial and industrial customers.

The total increase will be approximately $52 million, about 41% less than the $89 million Duke Energy Progress requested to recover investments made to increase system reliability and resiliency, achieve a cleaner, smarter energy future, and focus on operational excellence and enhancing the customer experience for more than 172,000 customers in the Pee Dee region of South Carolina.

Among other provisions, the agreement resolves recovery of coal ash basin closure costs in this case as well as allows Duke Energy Progress a return on equity of 9.6% and an equity component of the capital structure of 52.43%.

The agreement was reached with the Office of Regulatory Staff, the Department of Consumer Affairs, the South Carolina Energy Users Committee, Southern Alliance for Clean Energy, Coastal Conservation League, Vote Solar, the Sierra Club, the Department of Defense/Federal Executive Agencies, Walmart, Nucor Steel and the Small Business Chamber of Commerce.

"We appreciate the parties giving such thoughtful consideration to the needs of customers and to our ability to continue investing in the state's vibrant economy," said Mike Callahan, Duke Energy's South Carolina state president. "Especially during these challenging economic times, Duke Energy Progress stands ready to deliver the energy future our customers expect, to respond to destructive storms quickly and safely, to help our customers in need, and to act in our customers' best interests."

Duke Energy Progress

Duke Energy Progress, a subsidiary of Duke Energy, owns 12,500 megawatts of energy capacity, supplying electricity to 1.7 million residential, commercial and industrial customers across a 29,000-square-mile service area in North Carolina and South Carolina.

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy 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 executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business and at least a 50% carbon reduction from electric generation by 2030 and net-zero carbon emissions by 2050. The 2050 net-zero goals also include Scope 2 and certain Scope 3 emissions. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.

Duke Energy was named to Fortune's 2022 "World's Most Admired Companies" list and Forbes' "America's Best Employers" list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

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SOURCE Duke Energy

FAQ

What is the impact of Duke Energy's rate review agreement in South Carolina on monthly bills?

The agreement will increase the typical residential customer's monthly bill by approximately $10.95.

How much is Duke Energy Progress requesting in total rate increase?

Duke Energy Progress is seeking a total rate increase of $52 million.

What was the initial rate increase request by Duke Energy Progress before negotiations?

The initial requested rate increase was $89 million.

When will the rate increase take effect if approved?

The rate increase is planned to take effect starting April 1.

Who are the parties involved in the agreement with Duke Energy Progress?

The agreement includes consumer, environmental, and industrial groups, as well as regulatory bodies.