GREENVILLE, S.C. — Some South Carolina power customers could see increasing bills in April if Duke Energy Progress' rate hike is approved by state regulators.
On Thursday, the subsidiary owned by Duke Energy after a merger with Progress Energy announced that several consumer, environmental, and industrial groups had reached a comprehensive agreement regarding the company's rate review request in September 2022. Walmart, Nucor Steel, the US Department of Defense, and the Sierra Club were among the entities listed in the settlement agreement filed with the South Carolina Public Service Commission.
If the commission approves the agreement, customers who use around 1,000 kilowatt hours of electricity can expect bills to increase by about $10.95 per month. Commercial and industrial customers will also see increased electricity rates.
In the WCNC Charlotte viewing area, Duke Energy Progress serves customers in Chesterfield County, South Carolina. Customers in Anson, Stanly, and Richmond counties in North Carolina also receive electricity service from the utility.
The total increase should be around $52 million for the utility, about 41% less than the $89 million requested by Duke Energy Progress to recover investments made into the system, which serves about 172,000 in South Carolina's Pee Dee region. Those investments included boosting system reliability, cleaner energy initiatives, and enhancing customer experience and operational standards.
The agreement also resolves the recovery of costs tied to closing coal ash basins, allowing Duke Energy Progress a 9.6% return on equity and an equity component of the capital structure of 52.43%.
“We appreciate the parties giving such thoughtful consideration to the needs of customers and to our ability to continue investing in the state’s vibrant economy,” said Mike Callahan, Duke Energy’s South Carolina state president. “Especially during these challenging economic times, Duke Energy Progress stands ready to deliver the energy future our customers expect, to respond to destructive storms quickly and safely, to help our customers in need, and to act in our customers’ best interests.”
Duke Energy Progress serves 1.7 million customers across 29,000 square miles in both North Carolina and South Carolina.
The proposed rate hike in South Carolina is not the utility's only request for a rate hike either. A similar request was proposed to North Carolina regulators in Oct. 2022, which could see staggered bill increases over the course of three years for customers. If approved, residential customers can expect rates to go up starting in Oct. 2023.
