Duke Energy Carolinas proposes yearly update for fuel charges to South Carolina-based customers
Duke Energy Carolinas recently made its annual filing with the Public Service Commission of South Carolina (PSCSC) for fuel costs associated electricity generation at its power plants, which includes a proposed yearly update for fuel charges for its South Carolina-based customers.
As part of its duties, the PSCSC assesses fuel costs and adjusts fuel component of customer rates accordingly. Companies are not allowed to make a profit from fuel component rates by law.
Should the PSCSC approve Duke Energy’s filing, the monthly impact for an average residential customer throughout the state using 1,000 kilowatt hours (kWh) per month would increase by a total of $1.69. Additionally, commercial customers would see an average fuel charge increase of approximately 3.2 percent while industrial customers would see an increase of approximately four percent on average.
Fuel rates are primarily based on the projected cost of fuel used to provide electric service to the company’s customers and a true-up of the prior year’s projection.
According to Duke Energy, the proposed overall rate increase stems from a true-up component of the fuel rate intended to resolve the difference between protected fuel costs and what is billed to each customer and an increase in expenditures related to distributed energy resource initiatives in order to meet the goals laid out by the Distributed Energy Resource Program Act.
If approved, the new fuel rates would go into effect on October 1, 2017.
