Last week the state Public Service Commission approved an average 8.6 percent rate increase for Duke Energy customers, bringing the issue to its final resolution. Under the approved terms, the total annual rate increase will be implemented over two years.
Electric rates increased by $80.4 million, or an average of 5.53 percent, as of Wednesday. Rates will increase by an additional $38.2 million, or 2.63 percent, beginning Sept. 18, 2014. The total increase in rates over the two-year period will be $118.6 million, or an average increase of 8.16 percent for all customers.
To offset the lower increase the first year, Duke agreed to use $45 million from its Cost of Removal Reserve, the funds used to remove assets once they have been retired.
The company has also agreed to use $1 million in shareholder contributions to support public education initiatives and senior outreach. An additional $2.5 million will fund assistance programs for low-income customers, as well as manufacturing competitiveness grants, economic development, education or workforce training programs.
Duke reached an agreement with the Office of Regulatory Staff (ORS), which had calculated a reduction to the initial request. The Eastern division of Wal-Mart and Sam’s Stores, the S.C. Energy Users Committee and the S.C. Small Business Chamber of Commerce had sued to reduce the original request to increase retail revenues 15.1 percent, or $220 million.
