New Electric Rates Approved for Duke Energy’s South Carolina Customers
CHARLOTTE, N.C., Jan. 25, 2012 /PRNewswire/ — The Public Service Commission of South Carolina (PSCSC) today approved an increase to electric rates for Duke Energy’s South Carolina customers.
The PSCSC accepted the settlement among Duke Energy Carolinas, the South Carolina Office of Regulatory Staff, and Walmart Stores East.
“We’re pleased the commission approved the settlement, which strikes a balance between the economic challenges facing our customers and the company’s need to recover its capital investments,” said Catherine Heigel, president, Duke Energy South Carolina. “This decision enables the company to continue to make needed investments to deliver reliable energy to customers at competitive rates and address compliance with ever-increasing environmental regulations.”
Consistent with the approved settlement agreement, Duke Energy Carolinas will increase its customer rates in South Carolina by $92.8 million, with an allowed return on common equity of 10.5 percent and a 53 percent equity component of the capital structure.
The average rate increase is 5.98 percent, but the list below shows the approximate increase for each customer class. The specific increase for individual customers will vary, depending on the rate they pay and other factors.
- Residential – 7.1 percent increase, approximately $6 each month for customers who use 1,000 kilowatt-hours a month
- Commercial (general service) – 5.2 percent
- Industrial – 5.1 percent
- Lighting – 5.8 percent
The new rates will go into effect on Feb. 6, 2012.
Additionally, Duke Energy Carolinas will donate $4 million to AdvanceSC, a limited liability company established by Duke Energy in 2004 to support communities in Duke Energy’s South Carolina service area. The money will be used for grants for low income assistance, education initiatives, economic development and existing manufacturing support.
Under the provisions of the revised rates, the company’s current Bulk Power Marketing profit sharing allocation will change to provide 50 percent to AdvanceSC, 40 percent to customers, and 10 percent to the company. The previous formula provided 50 percent to AdvanceSC and 50 percent to the company.
As part of Duke Energy Carolinas’ modernization plan, the company expects two new power plants to begin producing electricity for customers in 2012. As a result, the company plans to request an additional rate increase in 2012 to recover the costs of these new plants and other capital investments made on behalf of customers.
The company continues to await a decision from the North Carolina Utilities Commission on its request to increase electric rates in North Carolina.
To view the commission’s directive issued today, please visit the PSCSC website.
Money-Saving Opportunities for Customers
Duke Energy wants to help customers make the best use of every dollar spent on their energy-related costs. To learn more, visit www.duke-energy.com/youtility.
Duke Energy Carolinas owns nuclear, coal-fired, natural gas and hydroelectric generation. That diverse fuel mix provides approximately 19,000 megawatts of owned electric capacity to approximately 2.4 million customers in a 24,000-square-mile service area of North Carolina and South Carolina.
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 12 million people. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.
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SOURCE Duke Energy