GREENVILLE, S.C., July 1, 2015 /PRNewswire/ -- While energy usage tends to increase this time of year as customers crank up their air conditioners to combat the summer heat, Duke Energy Progress' South Carolina customers will see some relief as the portion of their bills that pays for fuels used to generate electricity will decrease.
Beginning July 1, electric rates will decrease about 3.7 percent for residential customers, 5.6 percent for commercial customers and 9 percent for industrial customer bills -- putting more money back into customers' pockets.
Multiple factors drive customer savings
On May 7, 2015, Duke Energy Progress made its annual filing with the Public Service Commission of South Carolina (PSCSC) to adjust the fuel charge for its customers in South Carolina.
The total monthly impact for a typical residential customer using 1,000 kilowatt hours (kWh) per month would be a decrease of $3.94.
As approved by the PSCSC, beginning July 1, the charge for a typical residential customer using 1,000 kWh of electricity will decrease from $105.14 to $101.20 per month.
The main reasons for the proposed overall rate decrease:
- Total fuel costs projected for the upcoming year are declining due to a drop in commodity prices.
- The $9.9 million under-collection of fuel costs included in proposed base fuel rates as of June 30, 2015 -- which is primarily due to the extreme weather conditions during February 2015 -- is a smaller under-collection than reflected in existing rates.
- Fuel cost savings also are associated with Duke Energy Progress' planned purchase of North Carolina Eastern Municipal Power Agency's ownership share in certain generation assets. The purchase is expected to close later this year.
The company is also requesting a non-fuel base rate reduction of 0.106 per kWh to avoid double recovery of purchase power costs that are now recoverable in the fuel adjustment rider per Act 236.
Duke Energy Progress makes a fuel cost-recovery filing annually in South 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 PSCSC 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.
Duke Energy is the largest electric power holding company in the United States with approximately $120 billion in total assets. Its regulated utility operations serve approximately 7.3 million electric customers located in six states in the Southeast and Midwest.
Its commercial power and international energy 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 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.
Contact: Ryan Mosier
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SOURCE Duke Energy