Duke Energy to Cut Customer Rates by 6.2% from Jan.1
TL/DR –
Duke Energy Carolinas announced that due to falling fuel prices, customers will see a 6.2% rate reduction starting on January 1. This is part of the annual adjustment for the fuel cost used to generate electricity, with a typical residential customer seeing an almost $9 overall decrease. Additional elements of the rate adjustment include an 8.8% decrease to adjust for falling fuel prices, a 0.6% decrease from nuclear production tax credits, adjustments of less than 1% for customer assistance and energy efficiency programs, and a 2.9% increase in base rates.
Reduction in Duke Energy Rates Due to Falling Fuel Prices
Beginning January 1, customers of Duke Energy Carolinas will experience a 6.2% decrease in rates, a result of declining fuel prices. This rate reduction is part of the annual fuel cost adjustment and other ride adjustments that Duke Energy implements.
As per Duke Energy, a standard residential customer in North Carolina using 1,000 kWh per month will see a reduction of approximately $9 from current rates, reducing the bill from about $144 to roughly $135. This is 22% lower than the national average of around $174.
Commercial customers will also enjoy an average decrease of about 11.5%, while industrial customers will experience an average decrease of less than 1%, according to the electric power company. Duke Energy Progress customers have already benefitted from a 4.5% decrease effective since Dec. 1.
North Carolina Utilities Commission’s Role in Rate Reductions
The North Carolina Utilities Commission (NCUC) has approved these adjustments, which include:
- An 8.8% decrease to reflect the falling fuel prices.
- A 0.6% decrease resulting from nuclear production tax credits from the Inflation Reduction Act. More than half of Duke Energy’s power in the Carolinas comes from carbon-free nuclear.
- Adjustments of less than 1% to riders for customer assistance, storm securitization, and energy efficiency and demand-side management programs to lower energy use.
- An increase of 2.9% to base rates.
These adjustments result in a collective 6.2% rate reduction for typical customers, according to Duke Energy.
Duke Energy Carolinas serves approximately 2.2 million households and businesses across central and western North Carolina, including areas like Charlotte, Durham, and the Triad.
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