Duke Energy Carolinas is seeking to reduce customer bills to account for the cost of fuel used to generate electricity for South Carolina homes and businesses. If approved by the Public Service Commission of South Carolina (PSCSC), today’s average monthly residential bill would decrease by 13.8%.
The total monthly impact of these rate changes for a residential customer using 1,000 kilowatt-hours (kWh) per month would be a decrease of $19.60, from $142.23 to $122.63.
If approved by the PSCSC, rates for commercial customers would decrease 13.8% and rates for industrial customers would decrease 16.2%. The specific impact to individual customers will vary according to many factors including electric usage and customer profile dynamics.
If approved, the decrease to customer bills would begin in November and significantly offset the previously announced base rate increase approved by the PSCSC in July.
The PSCSC will consider new fuel rates in a public evidentiary hearing where it will also hear the results of an extensive audit and inquiries of the parties involved in the case to ensure an accurate adjustment is made to billed rates.
Duke Energy Carolinas serves about 660,000 households and businesses primarily in the Upstate of South Carolina, including Greenville, Spartanburg and Anderson counties. The company’s other South Carolina utility – Duke Energy Progress – made its annual fuel filing in April.
Why bills will decrease
Duke Energy Carolinas makes a fuel cost-recovery filing annually in South Carolina. The fuel rate is based on the projected cost of fuel used to provide electric service to the company’s customers, plus a true up of the prior year’s projection compared to actual costs incurred. The PSCSC reviews fuel costs and adjusts the fuel component of customer rates accordingly. Each year, this true-up proceeding is intended to resolve the difference between projected fuel costs, and what is actually billed to the customer.
The decrease for customer bills in this year’s request is primarily driven by the decreased cost of natural gas year over year, plus a reduced true-up component since the previous fuel cost-recovery filing.
Duke Energy Carolinas makes no profit from the fuel component of rates – actual costs are passed through directly to customers.
Helping customers save
Customers struggling to pay their energy bills might qualify for assistance from various government and nonprofit programs for utility bills and other household expenses, or from the Share the Light Fund, a Duke Energy program that provides energy assistance. Duke Energy also offers programs and resources to help customers, as well as flexible payment arrangements to help customers experiencing uncertainty keep their accounts in good standing.
To help all customers take control of their energy use, Duke Energy offers energy-saving tips and innovative efficiency programs for every budget. For example, the Home Energy House Call is a free in-home energy assessment that provides customers more information about how they use energy and strategies to save money on their monthly bill. To learn more about these programs, visit duke-energy.com/savings.
Written by Duke Energy.