Duke Energy Carolinas proposes more than $3 in monthly savings for customers in North Carolina

Mar 10, 2016, 08:00 ET from Duke Energy

CHARLOTTE, N.C., March 10, 2016 /PRNewswire/ -- Duke Energy Carolinas customers in North Carolina will see more than $3 in savings on their monthly energy costs in 2017 if the company's annual filings receive approval from the North Carolina Utilities Commission (NCUC).

If approved, electric rates would decrease for all customer bills, putting more money back into customers' homes and businesses.

What's Driving Customer Savings
On March 9, 2016, Duke Energy Carolinas made its annual filings with the NCUC for costs associated with fuel, compliance with the state's renewable energy portfolio standard (REPS), and implementation of energy efficiency (EE) and demand-side management (DSM) programs.

If approved, the total monthly impact of all rate changes (fuel, REPS, DSM, EE) for a typical residential customer using 1,000 kilowatt hours (kWh) per month is a decrease of about $3.11. For a typical residential customer using 1,000 kWh per month, bills would decrease from the current $107.11 to $104.00.

The main reasons for the proposed overall decrease in rates include:

  • Lower projected coal and gas fuel prices partially offset by higher projected nuclear fuel prices and higher sales
  • In addition, there is a $51 million decrease in the prior period true-up of fuel costs included in the proposed rate, as compared to the prior period true-up included in the current billing factor

Duke Energy Carolinas makes a fuel cost-recovery filing annually in North 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.

The NCUC reviews fuel costs and adjusts the fuel component of customer rates accordingly.

By law, the company makes no profit from the fuel component of rates.

Renewable Energy/Energy Efficiency
Duke Energy Carolinas also filed for an increase in the charge to customers for the utility's compliance with the state's renewable energy portfolio standard (REPS). Proposed increases to the REPS charge reflect increases in actual and projected compliance costs driven by the increase in the utility's overall compliance obligation.

Duke Energy Carolinas has also filed to recover the costs of implementing programs designed to help reduce energy consumption and save customers money on their energy bills.

The residential increase is primarily due to increased participation in programs, while the non-residential increase is primarily related to the addition of two programs added to the portfolio.

If approved, the new fuel and REPS rates will go into effect Sept. 1, 2016. The EE and DSM rates will go into effect Jan. 1, 2017.

About Duke Energy
Duke Energy Carolinas owns nuclear, coal-fired, natural gas, renewables and hydroelectric generation. That diverse fuel mix provides approximately 19,600 megawatts of owned electric capacity to about 2.5 million customers in a 24,000-square-mile service area of North Carolina and South Carolina.

Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 7.4 million electric customers located in six states in the Southeast and Midwest, representing a population of approximately 24 million people. Its Commercial Portfolio and International business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 125 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com

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SOURCE Duke Energy



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