- 75% of spending over next three years consists of electric grid infrastructure improvements
- Upgrades aim to make the grid more resistant to severe weather and reduce the duration of outages
- Creating a flexible, smarter grid also enables renewables, EVs and supports economic development and new jobs
CHARLOTTE, N.C., Jan. 19, 2023 /PRNewswire/ -- Duke Energy Carolinas today asked North Carolina regulators to review its rates as the company continues to strengthen the electricity grid to improve reliability for customers and facilitate a cleaner, more secure energy future in a manner that supports economic development across the state.
The rate case includes a three-year plan to fund system improvements, including nearly $4.2 billion in future grid infrastructure upgrades to increase reliability and enhance grid security while enabling renewables, EVs, and supporting economic development and new jobs. Duke Energy is evaluating ways to leverage the Inflation Reduction Act and Infrastructure Investment and Jobs Act to help offset these investments and save money for customers.
"Our customers expect us to deliver reliable, affordable and increasingly clean energy every day," said Kendal Bowman, Duke Energy's North Carolina president. "We're very mindful of the financial pressures our customers face. Our rates are well below the national average, and we remain committed to keeping rates as low as possible."
Duke Energy Carolinas serves about 2 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad. This is the first rate case the utility has initiated since 2019.
Since its previous rate case, Duke Energy Carolinas has driven out more than $140 million in annual operating costs (2018 to 2021) to relieve pressure on customer rates. Those savings will be passed on to customers in this case.
The company has proposed a gradual rate increase over three years. If approved by the NCUC, the net increase in retail revenues in year one is about $501 million or 9.5%, followed by $172 million (3.3%) in year two and $150 million (2.9%) in year three – a total 15.7% increase by 2026.
Beginning Jan. 1, 2024, the monthly impact for a typical residential customer using 1,000 kilowatt-hours (kWh) per month would be an increase of $12.54, from $115.01 to $127.55 per month, followed by a $3.90 increase in January 2025 and a $3.18 increase in January 2026. If approved, the $134.63 total would remain far below the current national average of $161.81 (Edison Electric Institute Summer 2022 Rates Report).
Customers struggling to pay their electric bills might qualify for a new Customer Assistance Program proposed as part of the rate case. If approved, it would reduce monthly bills for the company's most vulnerable customers by $42 per month.
Duke Energy Carolinas has also proposed new energy efficiency programs available to all residential customers, with potential savings that could significantly offset the proposed rate increase, and new time-of-use rates to help customers take more control over their energy bill.
To learn more about these programs, details of the company's proposal and the rate review process, visit duke-energy.com/DECNCRates.
Duke Energy Carolinas
Duke Energy Carolinas, a subsidiary of Duke Energy, owns 20,100 megawatts of energy capacity, supplying electricity to 2.8 million residential, commercial and industrial customers across a 24,000-square-mile service area in North Carolina and South Carolina.
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 28,000 people.
Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.
Duke Energy was named to Fortune's 2022 "World's Most Admired Companies" list and Forbes' "World's Best Employers" list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.
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SOURCE Duke Energy
