Duke Energy Customers May See Smaller Rate Increase Than Expected

GREENVILLE, South Carolina — Customers of Duke Energy Carolinas may face a smaller increase in their electric bills starting next March, pending approval from state regulators on a recent settlement regarding the company’s proposed rate hike.

Residential customers using 1,000 kilowatt-hours per month would see a rise of just 84 cents, increasing their monthly bill from $136.82 to $137.66 on March 1. After two years, this bill would go up by an additional $4.21, reaching $141.87.

Duke Energy Carolinas, a subsidiary of the publicly traded company based in Charlotte, indicated that the rate increase is necessary for enhancing grid reliability and resiliency. These improvements affect both transmission and distribution systems and respond to increased capital costs.

This proposed increase is significantly smaller than the initial amount suggested by Duke, which would have raised residential bills by $10.38, making them $147.19 per month for the same usage level. The overall revenue increase from the settlement is expected to be $74.2 million, down from the originally proposed $150.5 million.

The settlement was filed on Nov. 11 with the South Carolina Public Service Commission and has been endorsed by several parties, including environmental, consumer, and small business advocacy groups.

“This settlement includes exciting provisions essential to helping South Carolinians in a time when costs of living are high,” said Kate Mixson, a senior attorney with the Southern Environmental Law Center. She stressed that the agreement will help customers manage their electric bills and support energy efficiency.

The settlement mandates that Duke participate in future proceedings to address how to mitigate costs from rising energy demands, primarily driven by large users like data centers. Additional measures are included to promote energy efficiency, including weatherization and solar plus battery programs.

Duke Energy spokesperson Ryan Mosier noted that two sources of credits could offset the increased bills. One includes a fixed, two-year flowback of funds related to investments in solar, nuclear, and hydroelectric projects, while the other is a $750,000 annual contribution from shareholders over two years.

<p“If approved, this agreement allows us to keep pace with the needs of a growing state, rather than falling behind, so we can continue to support reliability and long-term economic growth for the communities we serve,” Mosier stated.

However, these increases arrive amid rising living costs in South Carolina, which disproportionately affect low-income households and those on fixed incomes. Electric bills in the state are projected to rise significantly in the coming decade, with South Carolina experiencing one of the highest expected increases in the nation, partly due to sweeping federal regulations aimed at reducing electric costs.

The proposed rate hike for Duke is the company’s first in five years. An additional increase planned for August 2024 is intended to be staggered, with the second phase set to go into effect on August 1, 2026.