Duke Energy customers in the Upstate may see a significantly smaller increase in their monthly electricity bills next March, pending regulatory approval of a settlement on the company’s recent rate hike proposal.
Under the agreement, residential customers using 1,000 kilowatt-hours per month would experience an initial 84-cent monthly increase starting March 1, raising the average bill from $136.82 to $137.66. Two years later, the bill would increase by an additional $4.21 per month to $141.87. This is a substantial reduction from Duke’s original proposal, which would have added $10.38 to the typical monthly bill.
The settlement reduces Duke Energy Carolinas’ total annual revenue increase to $74.2 million, less than half of the $150.5 million it initially requested. The utility stated the rate increase is necessary to cover the costs of grid reliability and resiliency improvements and the increased cost of capital to fund them.
Filed with the S.C. Public Service Commission on November 11, the partial settlement was reached between Duke and a coalition of environmental, consumer, and small business advocacy groups, as well as state agencies. Its terms are similar to a settlement proposed in October for Duke Energy Progress, which serves the state’s Pee Dee region.
“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. “Customers will be able to better control their bills and reduce costs to the grid with energy efficiency and clean energy programs.”
Provisions in the settlement require Duke to improve energy efficiency through weatherization and solar-plus-battery programs. The agreement also mandates a future proceeding to consider how to protect residents from potential costs associated with growing power demands from data centers and other large-scale users.
According to Duke Energy spokesperson Ryan Mosier, two sources of credits will help offset the bill increases for customers. These include $100 million in federal tax credits for renewable energy production, which will be passed back to customers over two years, and an annual $750,000 shareholder contribution for two years.
“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,” Mosier said.
However, any increase comes as the cost of living in South Carolina reaches historic highs, with rate hikes disproportionately affecting lower-income households and those on fixed incomes. Electricity bills in the state are projected to increase more than in nearly any other U.S. state over the next decade, a trend exacerbated by rising energy costs nationwide.
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