Duke Energy Carolinas proposes double digit rate hike as part of green energy efforts
Duke Energy Carolinas put forward a plan last week that calls for a 16.7 percent electricity rate hike for Charlotte, North Carolina-area residents as part of a reported move to modernize power plants and generate cleaner electricity.
“Through smart investments in cleaner energy plants and renewable resources, safely managing coal ash, and the grid that powers our lives and improves reliability, we are focused every day on providing customers increasing value and laying the foundation for a smarter energy future,” David Fountain, Duke Energy’s North Carolina president, said.
Their plan, released to the North Carolina Utilities Commission (NCUC), aims at sharing costs for modernization, clean up of coal ash and reliability improvements on to its customers. Duke Energy Progress, which serves electric customers in central and eastern North Carolina, filed a similar request in June. In the end, Duke Energy predicts this will increase their revenues by around $647 million.
Despite the massive jump, Duke Energy maintains this would keep area rates below the national average–and in fact, lower than rates paid in 1991 when adjusted for inflation. WHile residential customers would pay the aforementioned 16.7 percent increase, commercial and industrial customers would only see an average 10.9 percent increase. In total, Duke Energy Carolinas expects residential customers to pay around an extra $18.72 per month.
Part of the effort leading up to this has been the retirement of half of the company’s older, less-efficient coal plants that lack emission controls. They were replaced with natural gas-fueled plants and an increase of solar power. Smart meters and self-optimizing grid technology are also being implemented for cost saving and reliability measures. However, Duke Energy is also seeking to pull back on the development of the Lee Nuclear project due to what they label as “risks and uncertainties to initiating construction” becoming too great.
Duke Energy Carolinas is pursuing the public review process for its proposal, complete with hearings which will take on public commentary. The new rates, if approved, would go into effect in spring 2018.
