CHARLOTTE, N.C. — A subsidiary of the largest electric power provider in North Carolina is proposing a rate hike under a three-year plan it says will help make improvements to the state's power grid.
Duke Energy Progress, wholly owned by Duke Energy after a merger with Progress Energy in 2012, submitted a rate request to the North Carolina Utilities Commission (NCUC) on Thursday. The utility said this marks the first time a rate case submission includes a three-year plan it claims will help fund system improvements. In an online news release, Duke Energy said 75% of spending planned in this time frame will ensure the power grid is more resistant to outages caused by severe weather while also ensuring power is restored when outages do happen.
If approved as-is, Duke Energy Progress said residential customers would see phased monthly increases starting Oct. 1, 2023. On that date, the typical resident using 1,000 kilowatt hours (kWh) per month would see a $126.43 bill increase by $14.72 to $141.15. The following year, the bill would go up by $5.62, and in 2025 up another $5.21. At the end of the three-year hike, the typical customer's bill would be up to just shy of $152 per month.
Duke Energy Progress also notes in its news release that customers who could struggle to pay the bills under the rate hike may potentially qualify for a new assistance program. If approved, monthly bills for those customers would be slashed by $42 per month. Additionally, new energy efficiency programs are promised with potential savings for all customers.
The utility said the last time a rate case was made happened in 2019 and took cost-cutting measures to the tune of $100 million since then in an effort to keep bills low and delay the filing of the rate case.
Other improvements promised by Duke Energy Progress include boosting economic development, creating new jobs, enabling renewable energy sources, and encouraging the adoption of electric vehicles. The utility also said it's pursuing a transition to clean energy by reducing reliance on coal-fired generation to move to lower fuel-dependent resources.
The utility also provided an at-a-glance overview of the rate hike online. It shows how residential and commercial customers would be affected.
Customers in Stanly, Anson, and Richmond counties would likely be affected should the rate increase be approved. According to the map provided in the overview, Anson County is served by both Duke Energy and the Duke Energy Progress subsidiary, while Stanly and Richmond counties only receive service from the subsidiary.
WCNC Charlotte has reached out to the NCUC for further information about the rate case process.
