The company postponed collecting $34million in fuel costs last year to minimize the impact to customers' bills, which is the main reason for the proposed increase.
Image: Duke postponed collecting $34 million in fuel costs last year to minimize the impact to customers. Photo: Courtesy of Duke Energy.
Duke Energy Carolinas made its annual filing on July 30 with the Public Service Commission of South Carolina (PSCSC) for the costs associated with the purchase of fuel to generate electricity at its power plants.
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.
If approved, the total monthly impact for a typical residential customer in South Carolina using 1,000 kilowatt-hours (kWh) per month would be an increase of $2.21. Commercial customers would see an average increase in the fuel charge of about 0.7 percent, and industrial customers would receive an average increase of about 1.7 percent.
The company postponed collecting $34 million in fuel costs last year to minimize the impact to customers’ bills – the main reason for the proposed increase. And with lower projected fuel costs for this year, the impact is further minimized.
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. If approved by the PSCSC, the new fuel rates would go into effect Oct. 1.
Duke Energy Carolinas serves customers primarily in the Upstate of South Carolina.
Source: Company Press Release.