Duke Energy Progress requests rate review by Public Service Commission of South Carolina to build a cleaner, smarter energy future

Rhea-AI Summary

Duke Energy Progress has requested a rate review from South Carolina regulators to enhance system resilience and reliability for over 172,000 customers in the Pee Dee region. This marks the company’s first base rate increase since 2018, with proposed adjustments phasing in over two years. If approved, residential bills could rise by 14.7% starting April 1, 2023, increasing from $133.01 to $147.37 per month for typical energy use. Commercial and industrial customers may see a 7.8% rise. The company emphasizes that these adjustments are essential for improving infrastructure amid rising operational costs.

Positive

• Proposal reflects a commitment to improving system reliability and transitioning to a secure energy future.
• The rate increase will support essential infrastructure investments, enhancing overall customer experience.

Negative

• Proposed rate increases could burden customers, particularly amid rising costs in the economy.
• Residential customers may face an overall increase of 14.7%, impacting household budgets.

• Request reflects steps by the company to anticipate and keep pace with changes occurring in the Palmetto State to better serve customers
• Investments are improving resiliency, working toward an orderly transition to a secure energy future and improving the customer experience
• Proposal is the first by the company to increase base rates since 2018

GREENVILLE, S.C., Sept. 1, 2022 /PRNewswire/ -- Duke Energy Progress today asked South Carolina regulators to review its rates as the company continues working to increase system reliability and resiliency, achieve a cleaner, smarter energy future, and enhance the customer experience for more than 172,000 customers in the Pee Dee region of South Carolina.

"We know how important electric service is for our customers and no one wants to see bills increase," said Mike Callahan, Duke Energy's South Carolina state president. "This is particularly true now as rising costs across most sectors of our economy impact consumers and businesses throughout South Carolina and the nation."

"These challenges affect the energy industry as a whole and – through smart investments – we're working hard to meet customers' expectations and build the foundation for a smarter energy future from which all South Carolinians can benefit. These investments in critical energy infrastructure are the main reason for the proposed rate increase," Callahan said.

To ease the impacts of these investments on its customers, the company's rate request before the Public Service Commission of South Carolina (PSCSC) proposes phasing in the proposed rate increases over two years.

If approved by the PSCSC, the total net impact of the proposed increase to residential customer bills is 14.7%. Commercial and industrial customers will see an average increase of around 7.8% (actual rates vary by customer class and size).

If approved, the charge for a typical residential customer using 1,000 kilowatt hours (kWh) of electricity beginning April 1, 2023, will increase $14.36 per month, from $133.01 to $147.37. Starting April 1, 2024, the total monthly impact for a typical residential customer using 1,000 kWh per month would increase an additional $4.40, for an average bill of $151.77 per month.

Customers struggling to pay their energy bills might qualify for assistance from various government and nonprofit programs for utility bills and other household expenses. Duke Energy also offers programs and resources to help customers manage their usage to mitigate the impact of rate changes as well as flexible payment arrangements to help customers experiencing uncertainty, to include flexible payment options including the Share the Light Fund, a Duke Energy program that provides energy assistance.

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

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 Duke Energy's proposed rate increase in South Carolina?

Duke Energy proposes a 14.7% increase for residential customers starting April 1, 2023.

When was the last rate increase before this proposal?

This is the first base rate increase since 2018.

How much will typical residential bills increase by if the proposal is approved?

Typical residential bills will increase by $14.36 to $147.37 per month, and an additional $4.40 the following year.

What is the average increase for commercial and industrial customers?

Commercial and industrial customers may see an average increase of around 7.8%.

What assistance is available for customers struggling to pay their energy bills?

Duke Energy offers programs and resources to help customers manage energy costs and flexible payment arrangements.