Duke Energy Progress customers in SC could see increase in rates

GREENVILLE, S.C. – Duke Energy Progress is proposing an increase in monthly fuel costs for its customers beginning this summer, according to a press release.

Duke officials say this is the first proposed increase since 2014.

Duke Energy Progress serves customers in the northeastern part of South Carolina, including Florence, Darlington, Sumter, Lee, Kershaw, Chesterfield, Marlboro, Marion, Dillon, Williamsburg and Clarendon counties, and a small portion of western Horry and Georgetown counties.

The company made its annual fuel filing Thursday with the Public Service Commission of South Carolina for costs associated with the purchase of fuel to generate electricity at its power plants.

Under the proposal, residential customers using 1,000 kilowatt-hours per month would see their bills increase from the current $113.17 to $116.83, an increase of $3.66, or 3.2 percent. Commercial customers would see an average increase in their bills of about 3 percent, and industrial customers would receive an average increase of about 1.9 percent.

If approved, the new fuel rates would go into effect July 1.

Officials attribute the rate increase to an under-collection of projected fuel costs of $10.2 million for the prior period and an increase in expenditures related to distributed energy resource initiatives to meet the goals of Act 236.

Duke Energy Progress 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. Last year, monthly bills decreased by nearly $3 when these annual charges were approved by the PSCSC.

Duke Energy Progress works to actively manage its fuel contracts to keep fuel costs as low as possible for customers. Savings achieved from the joint dispatch of Duke Energy’s generation fleet in the Carolinas also help to minimize the company’s fuel costs. The PSCSC reviews fuel costs and adjusts the fuel component of customer rates accordingly.

By law, the company makes no profit from the fuel component of rates.

The proposed increase this year would affect the bills of all Duke Energy Progress customers in South Carolina. The company’s other South Carolina utility — Duke Energy Carolinas — will make its annual fuel filing in July.Information above is from a submitted press release.