Fuel Savings Will Decrease Bills for Duke Energy Progress Customers in South Carolina Beginning This Summer

Staff Report From South Carolina CEO

Monday, April 29th, 2019

Duke Energy Progress is proposing a decrease in monthly fuel costs for its South Carolina customers beginning this summer as part of an annual adjustment of the actual cost of fuel used to generate electricity at its power plants.

Duke Energy Progress serves about 169,000 customers in the northeastern part of South Carolina, including Darlington, Florence and Sumter counties.

Duke Energy Progress makes a fuel cost recovery filing annually with the PSCSC. 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. By law, the company makes no profit from the fuel component of rates.

The company made its annual fuel filing Friday, April 26. If approved by the PSCSC, the new fuel rates would go into effect July 1.

Under the proposal, typical residential customers using 1,000 kilowatt-hours (kWh) per month would see their bills decrease from the current $122.49 to $120.54, a decrease of $1.95, or 1.6 percent.

Commercial customers would see an average decrease in their bills of about 2.1 percent, and industrial customers would receive an average decrease of about 4.4 percent.

The primary reason for the proposed overall decrease in rates is a lower under-collection of fuel costs included in the 2019 proposed rates than the under-collection of fuel costs reflected in existing rates.

Duke Energy Progress works to actively manage its fuel contracts to keep fuel costs as low as possible for customers. Savings achieved from the joint dispatch of Duke Energy's generation fleet in the Carolinas also help to minimize the company's fuel costs. The PSCSC reviews fuel costs and adjusts the fuel component of customer rates accordingly.

The proposed decrease would affect the bills of all Duke Energy Progress customers in South Carolina. The company's other South Carolina utility -- Duke Energy Carolinas -- will make its annual fuel filing in July.

To help customers take control of their energy use and manage their bills, Duke Energy Progress offers energy-saving tips and innovative efficiency programs for every budget to help customers realize additional savings.

For example, the Home Energy House Call is a free in-home energy assessment, valued at $180, designed to give Duke Energy customers more information about how they use energy in their home and strategies to save money on their monthly bill.