Duke Energy Power Rates

[Ben Hollinbeck]

Ratesfor North Carolina customers will remain well below the national average, even after Duke Energy Carolinas completes approximately $7.7 billion in upgrades to make the electric grid more resistant to outages and enable faster power restoration.

And as in its Duke Energy Progress order issued in September, NCUC approval covers multiyear rates, along with incentives and penalties to hold the utility accountable for reliability and other performance metrics.

According to the Edison Electric Institute, the national monthly average for typical residential customers was $171.67 as of Jan. 1, 2023, before other utilities go through their own rate adjustments.

The full NCUC rate review order can be found here. Duke Energy Carolinas serves about 2 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad.

Duke Energy will also refer CAP customers to weatherization and energy efficiency services that can help provide long-term solutions to reduce energy usage. As part of a settlement in the rate cases for both Duke Energy Carolinas and Duke Energy Progress, Duke Energy shareholders will contribute $10 million for health and safety repairs that would otherwise prevent low-income customers from qualifying for weatherization and other energy efficiency improvements. Duke Energy shareholders are contributing an additional $6 million to the Share the Light Fund in support of North Carolina customers.

Following settlements with various participants in the rate review process, the NCUC approved three PIMs with annual incentives that grow up to $15 million in potential rewards as well as $15 million in potential penalties for Duke Energy Carolinas across three areas:

Duke Energy Carolinas, a subsidiary of Duke Energy, owns 19,500 megawatts of energy capacity, supplying electricity to 2.8 million residential, commercial and industrial customers across a 24,000-square-mile service area in North Carolina and South Carolina.

Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.

The base rate filing proposes smart investments in innovative technologies to increase efficiency and reduce outages while passing on savings to customers. It also includes 14 new solar sites, adding 1,050 megawatts of clean energy. More information on these investments can be found here, along with the previous press release for the Jan. 31, 2024, Test Year Letter filing.

Even with the requested base rate increase, the company expects overall customer bills to decrease in January 2025, compared to January 2024. The 2022 fuel under-recovery, storm restoration cost recovery and some legacy purchased power contracts will expire by year-end 2024. The removal of these costs will lower customer bills. This will be the second consecutive year Duke Energy Florida decreased its residential customer rates.

Duke Energy Florida announced its plan to file a fuel and capacity rate request due to falling natural gas cost projections, which will lower a typical residential 1,000-kWh customer bill by over $5. This is in addition to the $11.29 decrease from 2023 that began in January 2024. The filing is expected later this month. The rate change would go into effect after the FPSC approves this request. Customers could see a decrease in bills as early as June or July.

Duke Energy Florida works hard to provide the best possible price for our customers. These steps include delivering a diverse fuel mix, including solar for power generation, and managing fuel and generation resources in the most cost-effective manner for our customers.

As a result of the company's continued commitment to solar investments, Duke Energy Florida is already passing approximately $56 million of corporate tax savings annually to customers from the Inflation Reduction Act. For residential customers, this resulted in a decrease of $1.90 per 1,000 kilowatt-hours beginning in January 2023.

Duke Energy Florida also submitted its Florida Energy Efficiency and Conservation Act (FEECA) goals and proposed programs to meet those goals to the FPSC for approval. This filing proposes cost-effective programs to help conserve energy.

Home Energy Check

This program provides customers with an analysis of their energy consumption as well as educational information on how to save money by reducing energy usage. The program offers a variety of options to customers for in-person home walk-throughs, phone-assisted and online audits. At the completion of the audit, Duke Energy Florida provides kits that contain energy-saving measures that can be easily installed by the customer.

Neighborhood Energy Saver

Low-income/income-qualified customers are eligible to participate in the Low-Income Weatherization Assistance Program and Neighborhood Energy Saver (NES) program. NES offers free walk-through energy assessments designed to help customers learn how their homes use energy and how to lower monthly electric bills. In addition, qualified customers receive up to 16 free energy-saving products installed at no cost, such as energy-efficient lightbulbs, water-saving showerheads and faucets.

EnergyWise Home

Customers can receive bill credits while helping communities reduce energy use during periods of high demand. It also provides customers with energy savings and demand reduction through installation of energy-efficient equipment.

New Builder Construction Bundle

Duke Energy Florida is proposing a new builder construction bundle offering that would allow bundling of multifamily measures through this program. This additional offering will allow builders to install energy efficiency measures and provide them an opportunity to participate in incentives.

Duke Energy Florida will also continue to offer programs and assistance options to low-income customers. This includes connecting customers with assistance agencies that administer the Low-Income Home Energy Assistance Program and Elderly Home Energy Assistance Program.

Through the Duke Energy Foundation, the company also manages and contributes to its Share the Light Fund, which assists customers with paying their energy bills. In 2023, we distributed more than $1 million in energy bill assistance to qualifying Florida customers.

Duke Energy Florida, a subsidiary of Duke Energy, owns 12,300 megawatts of energy capacity, supplying electricity to 2 million residential, commercial and industrial customers across a 13,000-square-mile service area in Florida.

Rates for North Carolina customers will remain below the national average, even after Duke Energy Progress completes approximately $6.3 billion in upgrades to make the electric grid more resistant to outages and enable faster power restoration.

Duke Energy will also refer CAP customers to weatherization and energy efficiency services that can help provide long-term solutions to reduce energy usage. As part of a settlement in the rate cases for both Duke Energy Progress and Duke Energy Carolinas (still subject to NCUC approval), Duke Energy shareholders will contribute $10 million for health and safety repairs that would otherwise prevent low-income customers from qualifying for weatherization and other energy efficiency improvements. Duke Energy shareholders are contributing an additional $6 million to the Share the Light Fund in support of North Carolina customers.

Following settlements with various participants in the rate review process, the NCUC approved three PIMs with annual incentives that grow up to $10 million in potential rewards as well as $10 million in potential penalties for Duke Energy Progress across three areas:

Duke Energy Progress, a subsidiary of Duke Energy, owns 12,500 megawatts of energy capacity, supplying electricity to 1.7 million residential, commercial, and industrial customers across a 29,000-square-mile service area in North Carolina and South Carolina.

Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements, energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.

The company encourages customers to take advantage of the numerous flexible billing and energy savings programs, including free home assessments, budget billing and usage alerts, to help customers save energy and money.

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