Duke Energy Carolinas Announces Rate Hike In South Carolina
Charlotte-based energy giant, Duke Energy Carolinas, has revealed plans to increase its rates across South Carolina after obtaining formal approval from the Public Service Commission of South Carolina. The firm first lodged a rate review request with the commission in January of this year, consequently leading to the present ruling.
The Nitty-Gritty of the Rate Review
The rate increases put forward by Duke Energy span from an average of 4.4% to an elevated 8.7%, substantially depending on the type of customer. The commission’s approval of the rate review request was based on a settlement agreement submitted in the month of May. In his settlement testimony, Duke Energy South Carolina President Michael Callahan stated that “the agreement successfully reduced the requested annual revenue increase from $323 million or 15.5% to $240 million or 11.5%.” This significant jump signals the first base rate increase requested by the company since 2018, according to Duke Energy spokesman Ryan Mosier.
Impact on the Rock Hill region
As the rate hike takes effect, around 53,700 Duke Energy customers in the Rock Hill region, including about 39,000 each in York and Lancaster County, and an additional 14,700 in Chester County will be affected. According to a news release from Duke Energy on Monday, a typical residential customer will experience a monthly energy bill increase of about 8.7%. This translates to an estimated rise of $151.20 in residential customers’ annual energy expenditure.
On the other hand, commercial and industrial customers are looking at an average increase of approximately 4.6% and 4.4% respectively, as per the energy company. These changes in rates are slated to commence from August 1.
Why The Increase?
Duke Energy is pushing the rate increase needle with a view to recover the costs of crucial investments made to boost system reliability. Some of these improvements include upgrades to power plants, wires, and poles, explained Duke Energy spokesman Mosier. Recent upgrades finalized in April extend to its Bad Creek pumped storage facility in Salem, South Carolina. Enhanced and upgraded, the facility can now power over 1.3 million homes.
Besides these enhancements, the energy company also invests in its systems to ensure it’s equipped to meet future energy demands, according to the news release.
As this considerable adjustment in rates takes effect starting August, Duke Energy customers in South Carolina will begin to feel the impact on their bills. As the energy provider steers its investments towards improving service delivery and reliability, customers can only hope that these improvements provide tangible value against the increasing costs.
