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Duke Energy Carolinas customer rates drop 6.2% on Jan. 1 due to falling fuel prices

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Duke Energy Carolinas announced a 6.2% decrease in electric rates effective January 1, driven primarily by falling fuel prices. A typical residential customer using 1,000 kWh monthly will see bills drop by $8.96, from $144.31 to $135.35, which is 22% below the national average. Commercial customers will benefit from an 11.5% decrease, while industrial customers will see a decrease of less than 1%.

The rate reduction includes an 8.8% decrease due to falling fuel prices, a 0.6% decrease from nuclear production tax credits (IRA), and minor adjustments to existing riders. These reductions more than offset a previously approved 2.9% base rate increase. The company serves about 2.2 million households and businesses in central and western North Carolina.

Duke Energy Carolinas ha annunciato una riduzione del 6,2% delle tariffe elettriche a partire dal 1° gennaio, principalmente a causa del calo dei prezzi dei combustibili. Un cliente residenziale tipico che utilizza 1.000 kWh al mese vedrà le bollette diminuire di $8,96, passando da $144,31 a $135,35, il che è il 22% al di sotto della media nazionale. I clienti commerciali beneficeranno di una diminuzione dell'11,5%, mentre i clienti industriali vedranno una riduzione di meno dell'1%.

La riduzione delle tariffe include una diminuzione dell'8,8% dovuta al calo dei prezzi dei combustibili, una diminuzione dello 0,6% dai crediti d'imposta sulla produzione nucleare (IRA) e piccoli aggiustamenti alle tariffe esistenti. Queste riduzioni più che compensano un precedente aumento del tasso di base dell'2,9% approvato. L'azienda serve circa 2,2 milioni di famiglie e imprese nel centro e nell'ovest della Carolina del Nord.

Duke Energy Carolinas anunció una disminución del 6.2% en las tarifas eléctricas a partir del 1 de enero, impulsada principalmente por la caída de los precios de los combustibles. Un cliente residencial típico que utiliza 1,000 kWh mensuales verá sus facturas reducirse en $8.96, de $144.31 a $135.35, lo que representa un 22% por debajo del promedio nacional. Los clientes comerciales se beneficiarán de una disminución del 11.5%, mientras que los clientes industriales verán una disminución de menos del 1%.

La reducción de tarifas incluye una disminución del 8.8% debido a la caída de los precios de los combustibles, una disminución del 0.6% por créditos fiscales de producción nuclear (IRA) y ajustes menores a las tarifas existentes. Estas reducciones compensan con creces un aumento de tarifas base del 2.9% que se aprobó anteriormente. La empresa atiende a aproximadamente 2.2 millones de hogares y negocios en el centro y oeste de Carolina del Norte.

Duke Energy Carolinas는 연료 가격 하락에 따라 1월 1일부터 전기 요금을 6.2% 인하한다고 발표했습니다. 월 1,000 kWh를 사용하는 일반 주거 고객은 청구서가 $8.96 줄어들어 $144.31에서 $135.35로 감소하며, 이는 전국 평균보다 22% 낮은 수치입니다. 상업 고객은 11.5%의 인하 혜택을 받을 것이며, 산업 고객은 1% 미만의 감소를 경험할 것입니다.

요금 인하는 연료 가격 하락으로 인한 8.8% 감소, 핵 발전 세금 크레딧(IRA)으로 인한 0.6% 감소 및 기존 요금에 대한 소폭 조정을 포함합니다. 이러한 감소는 이전에 승인된 2.9%의 기본 요금 인상을 충분히 상쇄합니다. 이 회사는 노스 캐롤라이나 중앙 및 서부 지역에 약 220만 가정 및 사업체에 서비스를 제공합니다.

Duke Energy Carolinas a annoncé une réduction de 6,2 % des tarifs électriques à compter du 1er janvier, principalement en raison de la baisse des prix des combustibles. Un client résidentiel typique utilisant 1 000 kWh par mois verra sa facture baisser de 8,96 $, passant de 144,31 $ à 135,35 $, ce qui est 22 % en dessous de la moyenne nationale. Les clients commerciaux bénéficieront d'une réduction de 11,5 %, tandis que les clients industriels verront une diminution de moins de 1 %.

La réduction des tarifs comprend une diminution de 8,8 % due à la baisse des prix des combustibles, une diminution de 0,6 % provenant des crédits d'impôt pour la production nucléaire (IRA) et des ajustements mineurs aux tarifs existants. Ces réductions compensent largement une augmentation précédemment approuvée de 2,9 % du tarif de base. L'entreprise dessert environ 2,2 millions de foyers et d'entreprises dans le centre et l'ouest de la Caroline du Nord.

Duke Energy Carolinas hat eine Senkung der Strompreise um 6,2 % zum 1. Januar angekündigt, die hauptsächlich durch fallende Brennstoffpreise bedingt ist. Ein typischer Haushaltskunde, der monatlich 1.000 kWh verbraucht, wird eine Reduzierung seiner Rechnung um 8,96 $ erleben, von 144,31 $ auf 135,35 $, was 22 % unter dem nationalen Durchschnitt liegt. Gewerbliche Kunden profitieren von einer Senkung um 11,5 %, während industrielle Kunden eine Senkung von weniger als 1 % sehen werden.

Die Tarifsenkung umfasst eine Verringerung um 8,8 % aufgrund fallender Brennstoffpreise, eine Verringerung um 0,6 % aufgrund von Steuervergünstigungen für die Kernproduktion (IRA) sowie kleinere Anpassungen bestehender Tarife. Diese Reduzierungen machen einen zuvor genehmigten Anstieg des Grundtarifs um 2,9 % mehr als wett. Das Unternehmen versorgt etwa 2,2 Millionen Haushalte und Unternehmen in Zentral- und West-Nordkarolina.

Positive
  • 6.2% reduction in residential customer rates
  • 11.5% decrease for commercial customers
  • Residential rates $466/year below national average
  • 8.8% decrease from falling fuel prices
  • Additional 0.6% savings from nuclear production tax credits
Negative
  • 2.9% increase in base rates implemented

Insights

<p>The <b>6.2%</b> rate reduction for Duke Energy Carolinas customers represents a significant positive development in the utility sector. The decrease, driven by falling fuel costs and nuclear tax credits, will save typical residential customers <money>$8.96</money> monthly, positioning their rates <percent>22%</percent> below the national average. The rate structure changes reveal sophisticated cost management: the <percent>8.8%</percent> fuel cost decrease and <percent>0.6%</percent> nuclear credit benefit effectively absorbed the <percent>2.9%</percent> base rate increase. Commercial customers benefit even more with an <percent>11.5%</percent> reduction, though industrial rates see minimal change. This rate adjustment demonstrates effective fuel contract management and successful integration of IRA benefits, strengthening Duke's competitive position in the Carolinas market.</p>

<p>This rate decrease has positive implications for Duke Energy's competitive positioning and financial stability. With <b>2.2 million</b> households and businesses affected, the lower rates enhance customer retention and satisfaction while maintaining profitability through efficient cost management. The ability to pass through lower fuel costs while implementing planned base rate increases demonstrates strong regulatory relationships and operational efficiency. The <b>nuclear production tax credits</b> from the IRA provide a sustainable cost advantage, particularly important given Duke's significant nuclear fleet. For investors, this balanced approach to rate management suggests stable cash flows and reduced regulatory risk, supporting the company's <money>$82.8 billion</money> market capitalization and dividend sustainability.</p>
  • Decrease incorporates benefits from federal Nuclear Production Tax Credits, along with other rider adjustments
  • Annual bills for typical residential customer are $466 below national average

CHARLOTTE, N.C., Dec. 31, 2024 /PRNewswire/ -- Duke Energy Carolinas customers in North Carolina will see their electric rates fall starting Jan. 1 as part of an annual adjustment for the cost of fuel used to generate electricity at its power plants, along with other rider adjustments.

A typical residential customer in North Carolina using 1,000 kilowatt-hours (kWh) per month will see an overall decrease of $8.96, or about 6.2%, from current rates, falling from $144.31 to $135.35. That is 22% below the national average of $174.21 – a difference of approximately $466 per year.

Commercial customers will benefit from an average decrease in their bills of about 11.5%, and industrial customers will see an average decrease of less than 1%.

Duke Energy Carolinas serves about 2.2 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad.

Elsewhere in the state, Duke Energy Progress customers are already benefiting from a 4.5% decrease that went into effect on Dec. 1.

Customer Savings Driven by Falling Fuel Prices

To ensure accurate rates, the North Carolina Utilities Commission (NCUC) annually reviews the fuel costs needed to generate electricity for customers, along with rider updates for state programs to encourage clean energy adoption and reduce energy use. The commission approved the following adjustments:

  • A decrease of 8.8% to adjust for falling fuel prices.
  • A decrease of 0.6% resulting from nuclear production tax credits from the Inflation Reduction Act (IRA); more than half of Duke Energy's power in the Carolinas comes from carbon-free nuclear.
  • Adjustments of less than 1% to existing riders for customer assistance, storm securitization, and energy efficiency and demand-side management programs to lower energy use.
  • An increase of 2.9% to base rates, as approved last January by the NCUC in its 2024 multiyear rate case order.

The collective result is a 6.2% rate reduction for typical residential customers – in other words, the decrease from fuel more than offset the second-year increase to base rates.

Duke Energy works to actively manage fuel contracts to keep costs as low as possible for customers. Bills reflect actual fuel costs – customers pay what we pay. Learn more at Fuel Costs & Your Bill.

Duke Energy Carolinas

Duke Energy Carolinas, a subsidiary of Duke Energy, owns 20,700 megawatts of energy capacity, supplying electricity to 2.9 million residential, commercial and industrial customers across a 24,000-square-mile service area in North Carolina and South Carolina.

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. 

Duke Energy is executing an ambitious clean energy transition, keeping reliability, affordability and accessibility at the forefront as the company works toward net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company is investing in major electric grid upgrades and cleaner generation, including expanded energy storage, renewables, natural gas and nuclear.  

More information is available at duke-energy.com and the Duke Energy News Center. Follow Duke Energy on X, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.

Contact: Bill Norton
24-hour media line: 800.559.3853

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/duke-energy-carolinas-customer-rates-drop-6-2-on-jan-1-due-to-falling-fuel-prices-302340636.html

SOURCE Duke Energy

FAQ

How much will Duke Energy (DUK) residential customers save on their electric bills in 2024?

Duke Energy Carolinas residential customers will save $8.96 per month (6.2%) on average, with bills dropping from $144.31 to $135.35 for typical 1,000 kWh usage.

What is driving the January 2024 rate decrease for Duke Energy (DUK) customers?

The rate decrease is primarily driven by falling fuel prices (8.8% reduction), nuclear production tax credits (0.6% reduction), and various rider adjustments, offsetting a 2.9% base rate increase.

How do Duke Energy's (DUK) new rates compare to the national average?

Duke Energy's new rates are 22% below the national average, saving customers approximately $466 per year compared to the national average of $174.21 per month.

What is the rate reduction for Duke Energy (DUK) commercial customers in 2024?

Commercial customers will see an average decrease of 11.5% in their bills starting January 1, 2024.

How many customers will benefit from Duke Energy's (DUK) rate decrease in the Carolinas?

The rate decrease will benefit approximately 2.2 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad.

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