Duke Energy Progress proposes fuel cost decrease for customers

Duke Energy Progress recently made its annual fuel filing, which proposed a decrease in monthly fuel costs for the company’s South Carolina customers beginning this summer.

Under the proposal, bills for the typical residential customers using 1,000 kilowatt-hours (kWh) each month would decrease from the current $122.49 to $120.54, a reduction of 1.6 percent.

Commercial customers would receive an average decrease of approximately 2.1 percent in their bills, and industrial customers would see an average decrease of approximately 4.4 percent.

The fuel rate is based on the projected cost of fuel used to provide electric service to customers, plus a true-up of the prior year’s projection. By law, Duke Energy Progress makes no profit from the fuel component of rates. If approved by the Public Service Commission of South Carolina (PSCSC), the new fuel rates would go into effect July 1.

The primary reason for the recently proposed overall decrease in rates is a lower under-collection of fuel costs included in the 2019 proposed rates than the under-collection of fuel costs reflected in existing rates.

The PCSC is currently considering a separate request proposed in November to increase base rates.