For Duke Energy Progress South Carolina customers, the portion of their invoices that pays for “fuels used to generate electricity” decreased, effective July 1. Overall, electric rates are decreasing about 5.6 percent for Duke Energy Progress commercial customers and 9 percent for industrial customers. Residential customers will enjoy lesser savings of about 3.7 percent.
On May 7, Duke Energy Progress made its annual filing with the Public Service Commission of South Carolina (PSCSC) to adjust the fuel charge for its customers in South Carolina.
Among the main reasons for the proposed overall rate decrease:
- Total fuel costs projected for the upcoming year are declining, due to a drop in commodity prices;
- The $9.9 million under-collection of fuel costs included in proposed base fuel rates as of June 30 – predicated primarily on the extreme weather conditions last February – is smaller than has been reflected in existing rates; and
- Fuel cost savings also are associated with Duke Energy Progress’ planned purchase of North Carolina Eastern Municipal Power Agency’s ownership share in certain generation assets – expected to close later this year.
The company also is requesting a non-fuel base rate reduction of 0.106 to avoid double recovery of purchase power costs that now are recoverable in the fuel adjustment rider per South Carolina General Assembly Act 236, passed last May.
Duke Energy Progress 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. By law, the company makes no profit from the fuel component of rates.