New rates approved for Duke Energy Progress customers in South Carolina

Rhea-AI Summary

The Public Service Commission of South Carolina has approved a comprehensive settlement agreement for Duke Energy Progress, impacting customer rates from April 1, 2023. Residential customers using 1,000 kWh monthly will see an increase of about $10.95, or 8.2%. Commercial and industrial customers will experience average hikes of 3.7% and 2.2%. The total increase amounts to approximately $52 million, significantly lower than the $89 million initially requested. The agreement also includes provisions for coal ash basin closure costs, grid modernization investments, and a return on equity set at 9.6% within a capital structure of 52.43% equity.

Positive

• Settlement agreement reduces initial rate increase request from $89 million to $52 million.
• Provisions for continued infrastructure investments and grid modernization.
• Approval of 9.6% return on equity bolsters investor confidence.

Negative

• None.

• Public Service Commission of South Carolina approves comprehensive settlement agreement with all parties
• Agreement supports company's efforts to improve resiliency, maintain reliability and improve the customer experience

GREENVILLE, S.C., Feb. 10, 2023 /PRNewswire/ -- The Public Service Commission of South Carolina (PSCSC) has approved a comprehensive settlement agreement with all parties in the Duke Energy Progress rate review request filed with the commission in September of last year. As a result, new customer rates are expected to take effect April 1.

The comprehensive agreement between the company and consumer, environmental and industrial groups in South Carolina was submitted in January in conjunction with a public hearing on the matter.

Beginning April 1, the typical residential customer in South Carolina using 1,000 kilowatt hours of electricity will pay about $10.95 more per month, or 8.2%. Commercial and industrial customers will see an average increase of around 3.7% and 2.2%, respectively (actual rates vary by customer class and size).

The total increase will be approximately $52 million, about 41% less than the $89 million Duke Energy Progress requested to recover investments made to increase system reliability and resiliency, achieve a cleaner, smarter energy future, and focus on operational excellence and enhancing the customer experience for more than 172,000 customers in the Pee Dee region of South Carolina.

Among other provisions approved by the commission, the agreement resolves recovery of coal ash basin closure costs in this case, allows for continued investment in infrastructure to further modernize the grid, and establishes a reserve to help mitigate the costs to restore service after major storms. The settlement also allows Duke Energy Progress a return on equity of 9.6% and an equity component of the capital structure of 52.43%.

The agreement was reached with the Office of Regulatory Staff, the Department of Consumer Affairs, the South Carolina Energy Users Committee, Southern Alliance for Clean Energy, Coastal Conservation League, Vote Solar, the Sierra Club, the Department of Defense/Federal Executive Agencies, Walmart, Nucor Steel and the Small Business Chamber of Commerce.

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 are the new rates for Duke Energy Progress customers in South Carolina starting April 1, 2023?

Starting April 1, residential customers will pay about $10.95 more per month, while commercial customers will see an increase of 3.7% and industrial customers 2.2%.

How much was Duke Energy Progress's initial rate increase request?

Duke Energy Progress initially requested an increase of $89 million, but the approved settlement is for approximately $52 million.

What provisions are included in the Duke Energy Progress settlement agreement?

The agreement includes provisions for coal ash basin closure costs, infrastructure investments for grid modernization, and a return on equity of 9.6%.

Who approved the settlement agreement for Duke Energy Progress?

The settlement agreement was approved by the Public Service Commission of South Carolina.