Duke Energy Carolinas proposes reduction in annual adjustment for fuel cost with Public Service Commission of South Carolina
Duke Energy Carolinas (DUK) has proposed a reduction in customer bills to account for lower fuel costs used in electricity generation. If approved by the Public Service Commission of South Carolina:
- Average monthly residential bills would decrease by 13.8% or $19.60
- Commercial customer rates would decrease by 13.8%
- Industrial customer rates would decrease by 16.2%
The decrease, effective November, would significantly offset a previously announced base rate increase. This reduction is primarily due to decreased natural gas costs and a reduced true-up component. Duke Energy makes no profit from the fuel component of rates. The company also offers various assistance programs and energy-saving tips for customers struggling with bills.
Duke Energy Carolinas (DUK) ha proposto una riduzione delle bollette dei clienti in seguito alla diminuzione dei costi del combustibile utilizzato per la generazione di elettricità. Se approvata dalla Commissione per i Servizi Pubblici della Carolina del Sud:
- Le bollette mensili residenziali medie diminuirebbero del 13,8% o $19,60
- I tassi per i clienti commerciali diminuirebbero del 13,8%
- I tassi per i clienti industriali diminuirebbero del 16,2%
La riduzione, che avrebbe effetto a novembre, compenserebbe in modo significativo un aumento delle tariffe di base precedentemente annunciato. Questa diminuzione è principalmente dovuta a costi del gas naturale abbassati e a una componente di adeguamento ridotta. Duke Energy non realizza profitto dalla componente carburante delle tariffe. La compagnia offre anche vari programmi di assistenza e suggerimenti per il risparmio energetico per i clienti in difficoltà con le bollette.
Duke Energy Carolinas (DUK) ha propuesto una reducción en las facturas de los clientes para tener en cuenta los costos más bajos del combustible utilizados en la generación de electricidad. Si la Comisión de Servicios Públicos de Carolina del Sur lo aprueba:
- Las facturas residenciales mensuales promedio disminuirían en un 13.8% o $19.60
- Las tarifas para clientes comerciales disminuirían en un 13.8%
- Las tarifas para clientes industriales disminuirían en un 16.2%
La reducción, que entraría en vigor en noviembre, compensaría significativamente un aumento de tarifas base previamente anunciado. Esta disminución se debe principalmente a costos de gas natural reducidos y a una componente menor de ajuste. Duke Energy no obtiene ganancias de la componente de combustible de las tarifas. La compañía también ofrece varios programas de asistencia y consejos para ahorrar energía para los clientes que tienen dificultades con sus facturas.
Duke Energy Carolinas (DUK)는 전기 생성에 사용되는 연료 비용의 감소를 반영하기 위해 고객 청구서 감소를 제안했습니다. 사우스캐롤라이나 공공 서비스 위원회에서 승인될 경우:
- 평균 월간 주거용 청구서가 13.8% 감소하여 $19.60 줄어들 것입니다.
- 상업 고객 요금은 13.8% 감소합니다.
- 산업 고객 요금은 16.2% 감소합니다.
11월부터 시행될 이 감소는 이전에 발표된 기본 요금 인상을 상당히 상쇄할 것입니다. 이 감소는 주로 자연 가스 비용 감소 및 조정 요소의 축소 때문입니다. Duke Energy는 요금의 연료 구성 요소에서 이익을 얻지 않습니다. 또한 고객이 청구서로 어려움을 겪는 경우를 위해 다양한 지원 프로그램과 에너지 절약 팁을 제공합니다.
Duke Energy Carolinas (DUK) a proposé une réduction des factures des clients pour refléter les coûts de combustible plus bas utilisés dans la génération d'électricité. Si approuvée par la Commission des services publics de Caroline du Sud :
- Les factures résidentielles mensuelles moyennes décroîtraient de 13,8% ou 19,60 $
- Les tarifs des clients commerciaux diminueraient de 13,8%
- Les tarifs des clients industriels diminueraient de 16,2%
Cette réduction, effective en novembre, compenserait significativement une augmentation de tarif de base annoncée précédemment. Cette diminution est principalement due à la baisse des coûts du gaz naturel et à une composante de régularisation réduite. Duke Energy ne réalise aucun profit sur la composante de combustible des tarifs. L'entreprise propose également divers programmes d'aide et des conseils d'économie d'énergie pour les clients ayant des difficultés avec leurs factures.
Duke Energy Carolinas (DUK) hat eine Senkung der Kundenrechnungen vorgeschlagen, um den niedrigeren Brennstoffkosten für die Stromerzeugung Rechnung zu tragen. Wenn dies von der Public Service Commission von South Carolina genehmigt wird:
- Die durchschnittlichen monatlichen Haushaltsrechnungen würden um 13,8% oder $19,60 gesenkt
- Die Preise für Geschäftskunden würden um 13,8% gesenkt
- Die Preise für Industriekunden würden um 16,2% gesenkt
Die Reduzierung, die im November wirksam wird, würde eine zuvor angekündigte Erhöhung des Grundpreises erheblich ausgleichen. Diese Senkung ist hauptsächlich auf gesunkene Erdgaspreise und eine reduzierte Ausgleichskomponente zurückzuführen. Duke Energy erzielt keinen Gewinn aus dem Brennstoffanteil der Tarife. Das Unternehmen bietet auch verschiedene Unterstützungsprogramme und Energiespartipps für Kunden an, die Schwierigkeiten mit ihren Rechnungen haben.
- Proposed 13.8% decrease in average monthly residential bills, potentially saving customers $19.60
- Commercial customer rates proposed to decrease by 13.8%
- Industrial customer rates proposed to decrease by 16.2%
- Reduction would offset previously announced base rate increase
- Company offers assistance programs and energy-saving tips for customers
- Proposed rate decrease subject to approval by Public Service Commission of South Carolina
- Decrease partially offsets a previously announced base rate increase
Insights
Duke Energy Carolinas' proposal to reduce customer bills by
- Revenue Impact: The proposed reduction in bills will likely lead to a decrease in revenue for Duke Energy Carolinas. For a company serving about 660,000 households and businesses, this could translate to a substantial amount.
- Cost Savings: The decrease is primarily driven by lower natural gas costs, which suggests improved cost efficiency in fuel procurement. This could potentially offset some of the revenue decline.
- Regulatory Relationship: The proactive approach to passing on cost savings to customers may strengthen Duke Energy's relationship with regulators, potentially smoothing future rate case proceedings.
- Customer Retention: Lower bills could improve customer satisfaction and retention, which is important in a competitive energy market.
- Investor Perception: While lower bills might initially seem negative for investors, the improved regulatory relationship and potential for increased customer satisfaction could be viewed positively in the long term.
It's important to note that this reduction will significantly offset a previously announced base rate increase. The net effect on Duke Energy's financials will depend on the magnitude of these opposing factors. Investors should closely monitor the upcoming public evidentiary hearing for further insights into the financial implications of these rate adjustments.
Duke Energy Carolinas' proposed rate reduction highlights several important trends and strategies in the utility sector:
- Fuel Cost Pass-Through: The company's ability to pass through fuel costs directly to customers, without profit, is a common practice in the utility industry. This mechanism helps utilities manage commodity price volatility while maintaining stable margins.
- Clean Energy Transition: Duke Energy's ambitious clean energy goals, including net-zero methane emissions by 2030 and net-zero carbon emissions by 2050, align with broader industry trends. This transition may require significant capital investments, which could impact future rate cases.
- Grid Modernization: The mention of major electric grid upgrades suggests ongoing infrastructure investments. These are important for improving reliability and integrating renewable energy sources but may put upward pressure on future rates.
- Energy Efficiency Programs: Duke Energy's focus on customer energy-saving programs, such as the Home Energy House Call, reflects a growing industry emphasis on demand-side management. These initiatives can help utilities manage load growth and defer costly capacity additions.
- Regulatory Strategy: The proactive rate reduction proposal demonstrates a strategic approach to regulatory relations, potentially building goodwill for future rate cases or policy discussions.
While the immediate rate reduction may seem like a negative for the utility, it's part of a broader strategy that balances customer affordability, regulatory relationships and long-term investment needs. This approach is increasingly common among forward-thinking utilities navigating the complex landscape of energy transition and regulatory expectations.
- If approved, home energy bills would decrease
13.8% - Company continues to connect customers to financial assistance and offer cost-saving tools
The total monthly impact of these rate changes for a residential customer using 1,000 kilowatt-hours (kWh) per month would be a decrease of
If approved by the PSCSC, rates for commercial customers would decrease
If approved, the decrease to customer bills would begin in November and significantly offset the previously announced base rate increase approved by the PSCSC in July.
The PSCSC will consider new fuel rates in a public evidentiary hearing where it will also hear the results of an extensive audit and inquiries of the parties involved in the case to ensure an accurate adjustment is made to billed rates.
Duke Energy Carolinas serves about 660,000 households and businesses primarily in the Upstate of
Why bills will decrease
Duke Energy Carolinas makes a fuel cost-recovery filing annually in
The decrease for customer bills in this year's request is primarily driven by the decreased cost of natural gas year over year, plus a reduced true-up component since the previous fuel cost-recovery filing.
Duke Energy Carolinas makes no profit from the fuel component of rates – actual costs are passed through directly to customers.
Helping customers save
Customers struggling to pay their energy bills might qualify for assistance from various government and nonprofit programs for utility bills and other household expenses, or from the Share the Light Fund, a Duke Energy program that provides energy assistance. Duke Energy also offers programs and resources to help customers, as well as flexible payment arrangements to help customers experiencing uncertainty keep their accounts in good standing.
To help all customers take control of their energy use, Duke Energy offers energy-saving tips and innovative efficiency programs for every budget. For example, the Home Energy House Call is a free in-home energy assessment that provides customers 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 20,700 megawatts of energy capacity, supplying electricity to 2.9 million residential, commercial and industrial customers across a 24,000-square-mile service area in
Duke Energy
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in
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 Twitter, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.
24-Hour media line: 800.559.3853
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SOURCE Duke Energy
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