Duke Energy Proposes Smaller Rate Hike for Upstate Customers by March
Electric customers in Upstate South Carolina may experience a shift in their monthly energy bills depending on the outcome of a proposed settlement by Duke Energy. This settlement, linked to a recommended rate hike, would start changing residential bills in March.
Duke Energy’s Proposed Rate Hike
Duke Energy has suggested a modest increase for customers who use 1,000 kilowatt-hours per month. Under the new terms, bills would rise by just 84 cents, from $136.82 to $137.66, effective March 1. Following this, a further increase of $4.21 would occur in two years, adjusting the total bill to $141.87.
Background and Rationale
Duke Energy Carolinas, a branch of the Charlotte-based Duke Energy, cites the need for this rate hike to support enhancements in grid reliability and resiliency. The proposed increase is substantially lower than an earlier request, which would have led to a jump of $10.38, resulting in a bill of $147.19 for the same electricity usage.
- Initial request: $10.38 increase
- Proposed increase: $0.84 in March and $4.21 in two years
- Total annual revenue increase: $74.2 million
- Initial revenue increase suggestion: $150.5 million
Collaborative Settlement
The settlement proposal was filed with the South Carolina Public Service Commission (PSC) on November 11 and reflects collaboration among diverse stakeholders, including:
- Environmental groups
- Consumer advocates
- Small businesses
- Public interest state agencies
Kate Mixson of the Southern Environmental Law Center stressed the importance of this agreement amid rising living costs in the state. Provisions included in the settlement aim to assist residents in managing their bills through energy efficiency and clean energy initiatives.
Additional Measures for Consumer Protection
The settlement outlines stipulations requiring Duke Energy to engage with the PSC to find ways to protect residents from future cost increases, particularly those driven by growing power demands from data centers and other large users. New initiatives to boost energy efficiency will also be introduced, such as:
- Weatherization efforts
- Solar-plus-battery programs
Financial Relief Initiatives
Duke Energy spokesperson Ryan Mosier highlighted sources of financial credits designed to lessen the effect of bill increases. These include:
- A two-year flowback of $100 million in federal tax credits for renewable energy production
- A $750,000 annual shareholder contribution over the same period
Through this settlement, Duke Energy aims to address the energy needs of a growing population while promoting reliability and fostering long-term economic growth. However, the timing of the proposed increase coincides with record-high living expenses that could disproportionately impact low-income households and those on fixed incomes.
Future Outlook
As South Carolina anticipates substantial electric bill increases in the coming decade, this proposed hike continues a trend initiated by a previously approved increase set to take effect in August 2024. This marks Duke’s first rate adjustment in five years, highlighting the ongoing challenge of balancing operational costs with customer affordability.
