Duke Energy responds to North Carolina Utilities Commission's decision on Duke Energy Progress' 2019 rate request

Rhea-AI Summary

Duke Energy has responded to the North Carolina Utilities Commission's (NCUC) order regarding its 2019 rate adjustment request. The company emphasized its commitment to customer support during the pandemic, including suspending disconnections and providing over $20 million in charitable contributions. The NCUC approved several settlements aimed at reducing coal ash management costs and improving the energy grid to allow for more renewables. Significant contributions of $6 million and $5 million over two years will support energy-saving measures and assistance for low-income customers.

Positive

• NCUC's approval of settlement agreements which reduce coal ash management costs for customers.
• Enhancements for grid reliability and renewable energy integration supported by stakeholder settlements.
• Verification of reasonable storm costs, allowing securitization for customer savings.
• Elimination of bill-paying fees for residential customers.

Negative

• None.

CHARLOTTE, N.C., April 16, 2021 /PRNewswire/ -- Duke Energy issued the following statement in response to today's order by the North Carolina Utilities Commission (NCUC) on the rate adjustment request made by Duke Energy Progress on Oct. 30, 2019.

Duke Energy worked with the NCUC, the North Carolina Public Staff, and other groups last spring to postpone the rate case proceedings due to the pandemic.

The company has taken numerous additional steps over the past year to support customers through suspension of disconnections, flexible payment arrangements and more than $20 million in charitable giving across the state.

The full NCUC order can be found here.

Duke Energy statement

We are currently evaluating the North Carolina Utilities Commission's order on Duke Energy Progress' 2019 rate request and will determine the exact impacts on customer rates in the coming weeks. Our investments over the past several years have helped transition the state to cleaner energy sources, while keeping energy affordable and reliable for customers.

We are pleased with the NCUC's approval of the settlement agreements between Duke Energy and more than 10 diverse customer and environmental groups as a part of this transparent and thorough process. The result is a decision that balances the needs of customers and the company.

The NCUC's order:

• Approves Duke Energy's settlement with the Attorney General, N.C. Public Staff and Sierra Club, which will reduce the amount of coal ash management costs recovered in customer rates and provide clarity on coal ash in North Carolina for the next decade.
   
• Approves Duke Energy's settlement with 10 diverse stakeholders for future grid improvements to strengthen the grid, improve reliability and enable more renewable energy. These costs will be evaluated in future rate requests. Also approves a Climate Risk & Resilience Working Group to assess impacts of climate change on distribution and transmission infrastructure.
   
• Determines that all storm costs incurred due to hurricanes Florence, Michael and Dorian and winter storm Diego were reasonable and prudent, which allows the company to seek securitization for these costs in order to provide savings to customers.
   
• Eliminates direct debit and credit card bill-paying fees for residential customers and adopts Duke Energy's proposal on broad stakeholder workshops to evaluate rate design and additional regulatory programs and protections for low-income customers, including a potential income-qualified energy efficiency pilot program.
   
• Directs Duke Energy's shareholders to contribute $6 million over two years to the Helping Home Fund to provide energy- and cost-saving measures to North Carolina customers, and $5 million over two years to the Duke Energy Progress Energy Neighbor Fund program to provide billing assistance to low-income customers.

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of the largest energy holding companies in the U.S. It employs 29,000 people and has an electric generating capacity of 51,000 megawatts through its regulated utilities and 2,300 megawatts through its nonregulated Duke Energy Renewables unit.

Duke Energy is transforming its customers' experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit's regulated utilities serve 7.8 million retail electric customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to 1.6 million customers in five states: North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.

Duke Energy was named to Fortune's 2020 "World's Most Admired Companies" list and Forbes' "America's Best Employers" list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Media contact: Meredith Archie
800.559.3853

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SOURCE Duke Energy

FAQ

What is Duke Energy's response to the North Carolina Utilities Commission's order on April 16, 2021?

Duke Energy stated it will evaluate the NCUC's order regarding its 2019 rate request and determine the impact on customer rates.

What customer support actions did Duke Energy take during the pandemic?

Duke Energy implemented a suspension of disconnections and provided flexible payment arrangements, along with over $20 million in charitable support.

What are the key approvals granted by the NCUC in the recent order?

The NCUC approved settlements that reduce coal ash costs, improve grid reliability, and eliminate bill-paying fees for residential customers.

How much will Duke Energy contribute to support low-income customers?

Duke Energy will contribute $6 million over two years to the Helping Home Fund and $5 million to the Energy Neighbor Fund for low-income customer assistance.

What is the significance of the NCUC's order for Duke Energy's operations?

The order balances customer needs and company interests, facilitating the transition to cleaner energy sources.