Duke Energy seeks increase to monthly bills to cover fuel costs

Published: Friday, August 2, 2013 at 7:13 p.m.

Last Modified: Friday, August 2, 2013 at 7:13 p.m.

Duke Energy Carolinas residential customers in this state could see an average 7.9 percent increase on their monthly bills to help cover the utility's fuel and energy efficiency costs.

In filings this week with the Public Service Commission of South Carolina, Duke asked for increases to pay for fuels used to generate electricity and monthly charges used to pay for expanded energy efficiency programs.

If approved by the commission, the utility's commercial customers would see their bills increase by 6.1 percent, industrial customers by 8.9 percent and lighting by 1.7 percent.

Duke said the net effect of the two filings on a residential customer using 1,000 kilowatt-hours per month is a $7.62 increase. That means a customer whose current bill is $100.45 per month could see it go to $108.07.

By law, the company doesn't earn a profit from the fuel component of its rates. The rate is based, in part, on the projected cost of fuel used to provide electric service to customers. The company said fuel consumption and costs are subject to a variety of factors, including weather, customer demand and commodity prices.

?Duke Energy Carolinas works to actively manage its fuel contracts and leverage the benefits of the recent merger between Duke Energy and Progress Energy to keep fuel costs as low as possible for customers,? the utility said in a statement.

The commission is expected to review the filing later this month. The new fuel rates would go into effect on Oct. 1, if approved.

Last week, the utility saw its request for an increase in its base rates slashed under a settlement agreement filed with the Public Service Commission.

Duke had asked to increase its revenues by $220 million, which would have resulted in a 17.75 percent increase or $17.83 more for an average monthly residential electric bill. The settlement agreement allows Duke Energy to raise rates, but reduces the hike by 46 percent.

The company would be allowed to increase revenues by $118,622,000, which would mean the average monthly residential bill would increase by 10.26 percent or $10.31. The increase would be implemented over a two-year period so customers would realize a $7.52 monthly increase in the first year and $2.70 monthly increase the second year.

Duke Energy has about 500,000 customers in South Carolina and said the rate hikes were needed to recoup more than $1.1 billion the company has spent on older, less efficient facilities and building new power plants.

The settlement is subject to approval by the S.C. Public Service Commission.

If approved the rate hike would be the third by the utility since 2009, when a 1.7 percent increase was implemented. The second increase occurred in 2012, when the Public Service Commission agreed on a 5.8 percent increase.

Source: http://www.goupstate.com/article/20130802/articles/130809912

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