Duke Energy Progress is proposing an increase in monthly fuel costs for its South Carolina customers beginning this summer.
Under the proposal, typical residential customers using 1,000 kilowatt-hours per month would see their bills increase from the current $121.47 to $124.71, an increase of $3.24, or 2.7 percent, according to a news release.
Commercial customers would see an average increase in their bills of about 1.1 percent, and industrial customers would receive an average increase of about 2.4 percent.
The main reason for the proposed overall increase in rates is an under-collection of projected fuel costs of $23.4 million for the prior period, according to the release.
The proposed increase, however, must be approved by the Public Service Commission of South Carolina, which reviews fuels costs and adjusts the fuel component of customer rates accordingly. Duke made its annual fuel cost recovery filing earlier this month.
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, according to the release. By law, Duke makes no profit from the fuel component of rates.
If approved, the new fuel rates would go into effect July 1 and affect the bills of all Duke Progress customers in South Carolina.
Duke Energy Progress is a subsidiary of Duke Energy Corp., one of the largest energy companies in the United States. The company’s other South Carolina utility, Duke Energy Carolinas, will make its annual fuel filing in July.
For more information, visit duke-energy.com.