GREENVILLE, S.C., Oct. 1, 2015 /PRNewswire/ -- Duke Energy Carolinas' South Carolina customers will see greater savings in their electric bills beginning Oct. 1 as a decrease in the annual fuel charge begins to take effect.
The new fuel charge results in an electric rate decrease for residential customers of about 0.9 percent or about $1.06 per month – from $117.05 to $115.99 -- for those using 1,000 kilowatt-hours (kWh) a month.
General service customers will see a decrease of 2.4 percent, lighting customers 1.4 percent, and industrial customers 3.5 percent.
Multiple factors drive customer savings
On July 30, 2015, Duke Energy Carolinas made its annual filing with the Public Service Commission of South Carolina (PSCSC) to adjust the fuel charge for its customers in South Carolina. For the first time, this filing included costs related to Act 236 (or the Distributed Energy Resource Program Act) in proposed fuel charges.
The main reasons for the overall rate decrease include:
- Lower projected coal and natural gas prices
- A $19-million decrease in the period true-up of fuel costs from the prior year's projection
These deductions were partially offset by higher projected nuclear fuel prices and higher sales (which result in more frequent operation of Duke Energy Carolinas' higher cost generating units).
Duke Energy Carolinas 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.
The PSCSC reviews fuel costs and adjusts the fuel component of customer rates accordingly. The PSCSC approved the rate adjustment on Sept. 23, 2015.
By law, the company makes no profit from the fuel component of rates.
About Duke Energy
Duke Energy is the largest electric power holding company in the United States with approximately $120 billion in total assets. Its regulated utility operations serve approximately 7.3 million electric customers located in six states in the Southeast and Midwest.
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.
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SOURCE Duke Energy