Duke Energy Carolinas Proposes Reduction in Annual Adjustment for Fuel Cost With Public Service Commission of South Carolina
Duke Energy Carolinas has proposed a 13.8% reduction in annual fuel cost adjustment for South Carolina customers. If approved by the Public Service Commission of South Carolina (PSCSC), the average monthly residential bill would decrease by $19.60, from $142.23 to $122.63 for a 1,000 kWh usage. Commercial customers would see a 13.8% decrease, while industrial customers would benefit from a 16.2% decrease.
The reduction is primarily due to decreased natural gas costs and a reduced true-up component. If approved, the new rates would take effect in November, significantly offsetting a previously announced base rate increase. Duke Energy Carolinas serves about 660,000 households and businesses in South Carolina's Upstate region.
Duke Energy Carolinas ha proposto una riduzione del 13,8% dell'aggiustamento annuale dei costi per il combustibile per i clienti della Carolina del Sud. Se approvata dalla Commissione per i Servizi Pubblici della Carolina del Sud (PSCSC), la bolletta mensile media residenziale diminuirebbe di $19,60, passando da $142,23 a $122,63 per un consumo di 1.000 kWh. I clienti commerciali vedrebbero una riduzione del 13,8%, mentre i clienti industriali beneficerebbero di una riduzione del 16,2%.
La riduzione è principalmente dovuta a costi del gas naturale diminuiti e a una componente di rettifica ridotta. Se approvata, le nuove tariffe entreranno in vigore a novembre, compensando in modo significativo un precedente aumento delle tariffe base annunciato. Duke Energy Carolinas serve circa 660.000 famiglie e imprese nella regione dell'Upstate della Carolina del Sud.
Duke Energy Carolinas ha propuesto una reducción del 13.8% en el ajuste anual del costo de combustible para los clientes de Carolina del Sur. Si es aprobada por la Comisión de Servicios Públicos de Carolina del Sur (PSCSC), la factura mensual promedio para residentes disminuiría en $19.60, de $142.23 a $122.63 para un uso de 1,000 kWh. Los clientes comerciales verían una disminución del 13.8%, mientras que los clientes industriales se beneficiarían de una disminución del 16.2%.
La reducción se debe principalmente a los costos de gas natural reducidos y a una componente de ajuste menor. Si se aprueba, las nuevas tarifas entrarían en vigencia en noviembre, compensando significativamente un aumento previo de la tarifa base que se había anunciado. Duke Energy Carolinas atiende a aproximadamente 660,000 hogares y empresas en la región de Upstate de Carolina del Sur.
Duke Energy Carolinas는 사우스 캐롤라이나 고객을 위한 연료비 조정액을 13.8% 인하할 것을 제안했습니다. 사우스 캐롤라이나 공공 서비스 위원회(PSCSC)의 승인을 받을 경우 평균 월세는 $19.60 감소하여 1,000 kWh 사용시 $142.23에서 $122.63로 줄어듭니다. 상업 고객은 13.8% 감소를 경험할 것이며, 산업 고객은 16.2% 감소의 혜택을 받을 것입니다.
이번 인하는 주로 자연 가스 비용의 감소와 조정 구성 요소의 축소 때문입니다. 승인될 경우 새로운 요금은 11월부터 적용되어 이전에 발표된 기본 요금 인상을 상당히 상쇄하게 됩니다. Duke Energy Carolinas는 사우스 캐롤라이나 업스테이트 지역에서 약 660,000 가구 및 기업에 서비스를 제공합니다.
Duke Energy Carolinas a proposé une réduction de 13,8% de l'ajustement annuel des coûts de carburant pour les clients de Caroline du Sud. Si cela est approuvé par la Commission des services publics de Caroline du Sud (PSCSC), la facture mensuelle moyenne des ménages diminuerait de 19,60 $, passant de 142,23 $ à 122,63 $ pour une consommation de 1 000 kWh. Les clients commerciaux connaîtraient une réduction de 13,8%, tandis que les clients industriels bénéficieraient d'une réduction de 16,2%.
Cette réduction est principalement due à la baisse des coûts du gaz naturel et à une composante de régularisation réduite. Si elle est approuvée, les nouveaux tarifs entreront en vigueur en novembre, compensant ainsi de manière significative une augmentation de tarif de base précédemment annoncée. Duke Energy Carolinas dessert environ 660 000 foyers et entreprises dans la région Upstate de Caroline du Sud.
Duke Energy Carolinas hat eine Reduzierung von 13,8% der jährlichen Brennstoffkostenanpassung für Kunden in South Carolina vorgeschlagen. Wenn dies von der Public Service Commission von South Carolina (PSCSC) genehmigt wird, würde die durchschnittliche monatliche Rechnung für Haushalte um 19,60 $ sinken, von 142,23 $ auf 122,63 $ bei einem Verbrauch von 1.000 kWh. Geschäftskunden würden eine Reduzierung von 13,8% erleben, während Industriekunden von einer Reduzierung von 16,2% profitieren würden.
Die Reduzierung ist hauptsächlich auf gesunkene Erdgaspreise und eine verringerte Nachberechnungs-Komponente zurückzuführen. Werden die neuen Tarife genehmigt, treten sie im November in Kraft und kompensieren damit erheblich eine zuvor angekündigte Erhöhung des Grundtarifs. Duke Energy Carolinas bedient etwa 660.000 Haushalte und Unternehmen in der Region Upstate von South Carolina.
- Proposed 13.8% reduction in fuel cost adjustment for residential and commercial customers
- 16.2% decrease in rates for industrial customers
- Average monthly residential bill would decrease by $19.60 for 1,000 kWh usage
- New rates, if approved, would offset previously announced base rate increase
- None.
Insights
Duke Energy Carolinas' proposed 13.8% decrease in residential energy bills is a significant move that could positively impact both consumers and the company. This reduction, driven by lower natural gas costs, demonstrates the utility's responsiveness to market conditions and regulatory requirements.
The proposed decrease would offset the recent base rate increase, potentially improving customer satisfaction and reducing regulatory scrutiny. For investors, this could translate to more stable revenue streams and reduced regulatory risk. However, the impact on Duke Energy's profitability may be , as fuel costs are typically passed through to customers without markup.
The company's proactive approach in offering energy-saving programs and financial assistance aligns with industry best practices and could enhance its ESG profile, which is increasingly important to investors. Overall, this move balances customer affordability with the company's ongoing clean energy transition, potentially supporting long-term shareholder value.
The proposed rate reduction reflects broader trends in the energy market, particularly the declining costs of natural gas. This volatility in fuel prices underscores the importance of Duke Energy's diversified generation portfolio and its ongoing transition to cleaner energy sources.
The company's ability to pass through lower fuel costs to customers while maintaining its clean energy investments demonstrates effective cost management and strategic planning. This balance is important for utilities navigating the complex landscape of energy transition and regulatory pressures.
Investors should note that while lower bills may boost customer satisfaction, they also highlight the inherent volatility in the utility sector's cost structure. Duke Energy's focus on grid upgrades and cleaner generation could provide more stable long-term returns, potentially offsetting short-term fluctuations in fuel costs.
The proposed rate reduction must navigate the regulatory process, including a public evidentiary hearing and audit by the Public Service Commission of South Carolina. This transparency is important for maintaining regulatory goodwill and public trust.
Duke Energy's proactive approach in filing for a rate decrease, rather than waiting for regulatory intervention, could strengthen its relationship with regulators. This may prove beneficial in future rate cases or when seeking approval for capital investments.
The company's efforts to connect customers with financial assistance and offer energy-saving tools align with regulatory expectations for utilities to address affordability concerns. This customer-centric approach could enhance Duke Energy's standing in future regulatory proceedings, potentially leading to more favorable outcomes for the company and its shareholders.
If approved, home energy bills would decrease
13.8% Company continues to connect customers to financial assistance and offer cost-saving tools
GREENVILLE, SC / ACCESSWIRE / August 13, 2024 / Duke Energy Carolinas is seeking to reduce customer bills to account for the cost of fuel used to generate electricity for South Carolina homes and businesses. If approved by the Public Service Commission of South Carolina (PSCSC), today's average monthly residential bill would decrease by
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 South Carolina, including Greenville, Spartanburg and Anderson counties. The company's other South Carolina utility - Duke Energy Progress - made its annual fuel filing in April.
Why bills will decrease
Duke Energy Carolinas makes a fuel cost-recovery filing annually in South 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 compared to actual costs incurred. The PSCSC reviews fuel costs and adjusts the fuel component of customer rates accordingly. Each year, this true-up proceeding is intended to resolve the difference between projected fuel costs, and what is actually billed to the customer.
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 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 Twitter, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.
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