Duke Energy Progress requests rate review by North Carolina Utilities Commission to build a cleaner, smarter energy future

Rhea-AI Summary

Duke Energy Progress has requested a rate review from North Carolina regulators, focusing on enhancing electric grid infrastructure. Over the next three years, 75% of spending will improve grid resilience and support clean energy initiatives, benefiting 1.5 million customers. The proposed gradual rate increase will total 16% by late 2025, impacting typical residential customers by $14.72 monthly starting October 2023. Additionally, the company plans a Customer Assistance Program to aid struggling customers with a $42 monthly bill reduction, alongside new energy efficiency programs.

Positive

• Proposed investments will enhance electric grid infrastructure, improving reliability and reducing outages.
• The gradual rate increase allows for a total of $326 million (8.5%) in year one and an overall 16% increase by late 2025.
• Customer Assistance Program could offset bills by $42 for vulnerable customers.

Negative

• Proposed rate increase may burden customers, with monthly bills rising to $141.15 by October 2023.

• 75% of spending over next three years consists of electric grid infrastructure improvements
• Upgrades aim to make the grid more resistant to severe weather and reduce the duration of outages
• Creating a flexible, two-way grid also enables renewables, EVs and supports economic development and new jobs

CHARLOTTE, N.C., Oct. 6, 2022 /PRNewswire/ -- Duke Energy Progress today asked North Carolina regulators to review its rates as the company continues to strengthen the electricity grid, reducing power outages for customers and facilitating a clean, secure energy future in a manner that supports economic development across the state.

Over the past five years, infrastructure upgrades helped avoid more than 1.3 million extended customer outages, saving more than 3 million hours of total lost outage time for customers.

"Our customers count on us to deliver affordable, reliable and increasingly clean energy every day," said Stephen De May, Duke Energy's North Carolina state president. "We're sensitive to the financial pressures our customers face, and we remain committed to keeping rates as low as possible."

Duke Energy Progress serves about 1.5 million customers in central and eastern North Carolina and in the Asheville region. This is the first rate case the utility has initiated since 2019.

Since its previous rate case, Duke Energy Progress has driven out more than $100 million in annual operating costs (2018 to 2021) to relieve pressure on customer rates. Those savings will be passed on to customers in this case.

The company has proposed a gradual rate increase over three years. If approved by the NCUC, the net increase in retail revenues in year one is about $326 million or 8.5%, followed by $151 million (3.9%) in year two and $138 million (3.6%) in year three – a total 16% increase by late 2025.

Beginning Oct. 1, 2023, the monthly impact for a typical residential customer using 1,000 kilowatt-hours (kWh) per month would be an increase of $14.72, from $126.43 to $141.15 per month, followed by a $5.62 increase in October 2024 and a $5.21 increase in October 2025.

Customers struggling to pay their energy bills might qualify for a new Customer Assistance Program proposed as part of the rate case – if approved, it would reduce monthly bills for the company's most vulnerable customers by $42 per month. Duke Energy Progress has also proposed new energy efficiency programs available to all customers, with potential savings that could significantly offset the proposed rate increase, and new time-of-use rates to help customers take more control over their energy bill.

To learn more about these programs, details of the company's proposal and the rate review process, visit duke-energy.com/DEPNCRates.

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.

24-hour media line: 800.559.3853

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SOURCE Duke Energy

FAQ

What is Duke Energy's recent rate review proposal?

Duke Energy Progress proposed a rate increase to enhance electric grid infrastructure, which includes a 16% total increase by late 2025.

How will the rate increase affect typical residential customers?

A typical residential customer will see their monthly bill rise from $126.43 to $141.15 starting October 2023.

What percentage of spending will focus on grid improvements?

75% of the spending over the next three years will be dedicated to electric grid infrastructure improvements.

When was the last rate case submitted by Duke Energy Progress?

This is the first rate case initiated by Duke Energy Progress since 2019.

What customer assistance options are being introduced?

Duke Energy Progress has proposed a Customer Assistance Program that could reduce energy bills by $42 per month for eligible customers.