Duke Energy Carolinas seeks approval to increase rates for clean energy investments
Duke Energy Carolinas is seeking approval from North Carolina regulators to increase its rates.
The rate increases reflect the company’s ongoing investments in clean energy and a more reliable grid.
“Duke Energy is committed to a smarter, cleaner energy future for North Carolina,” Stephen De May, Duke Energy’s North Carolina president, said. “We have significantly reduced our carbon footprint and have proposed additional steps to further transition to cleaner energy sources. We are also modernizing the electric grid to improve reliability, help avoid power outages and speed restoration when outages do occur.”
According to the filing with the North Carolina Utilities Commission (NCUC), the average rate increase across all customer groups is six percent. That will be reduced by 3.2 percent from federal and state tax reform savings. Even with the increases, their rates will remain below the Southeast Atlantic region and national averages. The average rate increase for residential customers would be 6.7 percent, which means that a residential customer who uses 1,000 kilowatt-hours (kWh) of electricity monthly would pay about $116.26 per month, or an increase of $8.06 per month, on average. Commercial and industrial customers would see an average increase of 5 percent.
Among its investments, Duke Energy Carolinas deployed more than 2 million smart meters, providing customers enhanced usage data and usage alerts, improved outage detection and enabling new programs tailored to help customers make smarter energy choices and save money.
The company is also proposing to shorten the remaining lives of several coal-fired power plants as it transitions to cleaner energy sources. It is in the process of closing ash basins at seven operating and retired coal plant sites.
Further, the company is building a smart-thinking grid that will support the growth of solar power, battery storage, microgrids, and electric vehicles. It is also working to make the grid more resistant to power outages from severe weather and flooding. It is also making it stronger to better protect against physical and cyber threats.
The filing also includes several measures to reduce the impact of rising costs on low- and fixed-income customers.
“We know rising costs can be difficult for many customers, but particularly challenging for our customers on low and fixed incomes,” De May said. “We have heard the concerns and are working to minimize the impact of these important investments on our customers least able to accommodate rate increases. We look forward to the next steps in this process.”
NCUC must approve the proposed rate changes following a review process that includes multiple opportunities for public comment and a determination of whether the company’s investments were in the best interest of customers.
Duke Energy Carolinas provides energy to 2.6 million households and businesses in central and western North Carolina. Duke Energy Progress.
