Duke Energy Carolinas Files New Rates to Pass Federal Tax Savings to North Carolina Customers

Duke Energy Carolinas today filed new rates for North Carolina customers based on the North Carolina Utilities Commission's (NCUC) order issued June 22. The proposed changes in customer rates include savings from recent federal tax reform. The new rates will remain below the national average, even after adjustments are made to reflect investments in cleaner, more reliable energy.

"The recent federal tax reform provides a unique opportunity to pass the direct benefits of that reform to customers," said David Fountain, Duke Energy's North Carolina president. "With the North Carolina Utilities Commission's decision in hand, we will deliver real savings to customers while providing the full benefits of cleaner, more reliable electricity."

Rate impact by customer group
Electric rates will be phased in over four years to account for a return of North Carolina state income taxes. Rates will decrease by an average of 1.34 percent across all customer groups when approved by the NCUC and adjust to a 0.22 percent decrease in August 2022.

The following chart illustrates the net rate change by customer group, which will go into effect after final NCUC approval:

Average net rate change percentage – Years 1-4

  • Residential: 0.30 percent
  • General Service: -2.58 percent
  • Industrial: -3.86 percent

Average net rate change percentage – After Year 4

  • Residential: 1.19 percent
  • General Service: -1.57 percent
  • Industrial: -2.70 percent

These numbers show the average impact of the compliance rates for each customer group. The specific increase or decrease for individual customers will vary depending on the rate they pay and other factors.

The annualized bill for a typical residential customer using 1,000 kilowatt-hours (kWh) of electricity per month will increase to $104.69 from the current $103.85 once new rates are approved by the NCUC.

The NCUC approved the company's partial settlement with the Public Staff, which includes costs related to a highly efficient natural gas plant and two new solar projects.

Also approved by the NCUC are the company's Lee Nuclear project development costs and past investments to permanently close ash basins at eight sites in the Carolinas in compliance with state and federal regulations.

Source: Duke Energy
Date: Jul 19, 2018