Duke Energy Rate Increase for 680,000 SC Customers Lower Than Expected
Duke Energy is set to implement a new rate increase for its South Carolina customers, although the hike is smaller than initially proposed. Regulators are considering a settlement that suggests a modest rise in monthly electric bills starting March 1, 2024.
Duke Energy Rate Increase Details
Residential customers using 1,000 kilowatt-hours per month will experience a slight increase of 84 cents. This change will raise their bills from $136.82 to $137.66. A further increase of $4.21 is expected within two years, bringing the total monthly bill to $141.87.
Rationale Behind the Increase
Duke Energy asserts that this rate adjustment is necessary to fund improvements in grid reliability and resiliency. These enhancements affect both transmission and distribution systems. Additionally, the rate increase addresses rising capital costs associated with these improvements.
Settlement Overview
The proposed settlement, filed on November 11 with the South Carolina Public Service Commission, aims to increase annual revenue by $74.2 million. This figure is considerably lower than the original proposal of $150.5 million. The agreement includes various stakeholders, such as environmental and consumer advocacy groups, small businesses, and state agencies.
Future Considerations for Customers
The settlement includes provisions aimed at supporting energy efficiency and minimizing future costs for consumers. Key highlights include:
- Increased energy efficiency initiatives.
- Programs for weatherization and solar battery storage.
- Protection measures against rising power demands primarily linked to data centers and large industrial users.
According to Ryan Mosier, a spokesperson for Duke Energy, the agreement also includes a $100 million federal tax credit flowback over two years. This funding will be aimed at renewable energy sources like solar, nuclear, and hydroelectric power.
Impact on South Carolina Residents
The timing of this rate increase coincides with historically high living costs in South Carolina. Lower-income households or those on fixed incomes may find the hike burdensome. Although Duke’s rate change is one of many across the country, South Carolina expects to see one of the highest increases in electric bills over the next decade.
Conclusion
As the settlement awaits regulatory approval, Duke Energy’s plan aims to balance improved service and economic needs for its customers. Ongoing adjustments will strive to meet the electricity demands of a growing population, ensuring reliability in services while considering the financial impacts on residents.
