- Agreement supports company's efforts to increase system
diversity, reliability and enhance the customer experience
GREENVILLE, S.C., May 17, 2024
/PRNewswire/ -- Duke Energy Carolinas has reached a settlement
agreement with almost all parties, including certain consumer,
environmental and industrial groups in South Carolina, for its rate review request
filed in January of this year – the first such request by the
company since 2018.
If the agreement is approved by the Public Service Commission of
South Carolina (PSCSC), the total
increase will be approximately $240
million, which is about 26% less than the $323 million Duke Energy Carolinas requested to
recover investments made to increase system diversity and
reliability, enhance the customer experience and meet future energy
demands for nearly 660,000 customers primarily in the Upstate
region of South Carolina.
The increase will be reduced by approximately $84 million through July
31, 2026, to result in a net increase of approximately
$156 million. The net increase
reflects the company's proposal to mitigate the requested rate
increase by accelerating over two years the return of excess
deferred income tax benefits resulting from the Federal Tax Cuts
and Jobs Act of 2017 ("Tax Act"). This reduction would expire after
two years.
If approved by the PSCSC, a typical residential customer using
1,000 kilowatt hours will see an increase of $12.53 per month beginning Aug. 1, 2024. Beginning Aug. 1, 2026, residential rates would increase an
additional $6.42 per month for a
typical residential customer using 1,000 kilowatt hours.
Among other provisions, the agreement resolves recovery of new
investments in highly efficient natural gas, nuclear, solar and
hydroelectric units. The agreement also resolves recovery of the
company's continued investments in the grid, its new corporate
headquarters and environmental compliance costs in this case as
well as allows Duke Energy Carolinas a return on equity of 9.94%
and an equity component of the capital structure of 51.21%.
It also provides – at shareholder expense – $2 million to fund a collaborative of
stakeholders focused on enhancing assistance for low-income
customers as well as investments in weatherization programs.
The agreement was reached with the South Carolina Office of
Regulatory Staff, the South Carolina Energy Users Committee,
Southern Alliance for Clean Energy, Coastal Conservation League,
Vote Solar, and the South Carolina Small Business Chamber of
Commerce. While not signatories to the agreement, both Walmart and
CMC Recycling do not object to approval of the agreement.
"We are taking steps to keep pace with and anticipate the
changes occurring in our state," said Mike
Callahan, Duke Energy's South
Carolina president. "If approved, this agreement will
support our efforts to diversify and enhance our system and
continue our track record of operational excellence while keeping
costs to customers as low as possible. We appreciate the parties
involved thoughtfully considering the needs of our customers and
our ability to continue investing in our state's booming
economy."
The PSCSC will conduct an evidentiary hearing beginning
May 20 to review the agreement and
other issues in the rate review request.
Duke Energy Carolinas
Duke Energy Carolinas, a
subsidiary of Duke Energy, owns 20,700 megawatts of energy
capacity, supplying electricity to 2.9 million residential,
commercial and industrial customers across a 24,000-square-mile
service area in North Carolina and
South Carolina.
Duke Energy
Duke Energy (NYSE: DUK), a Fortune 150
company headquartered in Charlotte,
N.C., is one of America's largest energy holding companies.
The company's electric utilities serve 8.4 million customers in
North Carolina, South Carolina, Florida, Indiana, Ohio
and Kentucky, and collectively own
54,800 megawatts of energy capacity. Its natural gas unit serves
1.7 million customers in North
Carolina, South Carolina,
Tennessee, Ohio and Kentucky.
Duke Energy is executing an ambitious clean energy transition,
keeping reliability, affordability and accessibility at the
forefront as the company works toward net-zero methane emissions
from its natural gas business by 2030 and net-zero carbon emissions
from electricity generation by 2050. The company is investing in
major electric grid upgrades and cleaner generation, including
expanded energy storage, renewables, natural gas and advanced
nuclear.
More information is available at duke-energy.com and the
Duke Energy News Center. Follow Duke Energy
on Twitter, LinkedIn, Instagram and Facebook,
and visit illumination for stories about the people and
innovations powering our energy transition.
Forward-Looking Information
This document includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements are based on management's
beliefs and assumptions. These forward-looking statements are
identified by terms and phrases such as "anticipate," "believe,"
"intend," "estimate," "expect," "continue," "should," "could,"
"may," "plan," "project," "predict," "will," "potential,"
"forecast," "target," "outlook," "guidance," and similar
expressions. Various factors may cause actual results to be
materially different than the suggested outcomes within
forward-looking statements; accordingly, there is no assurance that
such results will be realized. These risks and uncertainties
are identified and discussed in Duke Energy's Form 10-K for the
year ended December 31, 2023, and
subsequent quarterly reports filed with the Securities and Exchange
Commission ("SEC") and available at the SEC's website at
www.sec.gov. In light of these risks, uncertainties and
assumptions, the events described in the forward-looking statements
might not occur or might occur to a different extent or at a
different time than Duke Energy has described. Duke Energy
expressly disclaims an obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE Duke Energy