Duke Energy Carolinas proposes fuel-related charge increase for first time since 2011

Published on March 14, 2017 by Daily Energy Insider Reports

For the first time since 2011, Duke Energy Carolinas customers will see an increase in monthly energy bills due to fuel-related costs, if the North Carolina Utilities Commission (NCUC) approves this year’s fuel-costs recovery filing recently filed by the company.

This year’s increase comes primarily from a net loss from the sale of generation byproducts, including coal ash and gypsum. Although the sales resulted in the net loss, reusing byproducts can provide savings to customers when compared to other disposal processes.

The residential increase is also due to increased participation in programs for reducing customers’ energy usage. Increased program costs and participation, along with the effect of fewer non-residential customers participating in the company’s rider, caused an increase for non-residential customers.

The company filed for a decrease in the charge to customers for the cost of complying with North Carolina’s renewable energy portfolio standard (REPS), predominantly because of an over-collection in REPS cost for the 2016 true-up period.

Duke Energy Carolinas makes filings each year for costs associated with fuel, compliance with the state’s REPS, and implementation of energy efficiency (EE) and demand-side management (DSM) programs. The fuel rate is determined by the predicted cost of fuel used to provide electric service and a true-up of the previous year’s forecast.

If NCUC approves the filing, typical customers using over 1,000 kilowatt-hours per month will see an increase in their monthly bills of 2.5 percent or $2.60. The increase would affect all Duke Energy Carolinas customers in North Carolina. By law, the utility may not profit from fuel-related cost charges.

If approved, the new fuel and REPS rates will go into effect on Sept. 1, 2017. EE and DSM rates will go into effect on Jan. 1, 2018.

Last year, Duke Energy Carolina customers’ bills decreased by $3 as a result of the company’s fuel-costs recovery filing.