Duke Energy Carolinas has reached a settlement agreement with almost all parties, including certain consumer, environmental and industrial groups in South Carolina, for its rate review request filed in January 2024.
On receiving approval for the agreement by the Public Service Commission of South Carolina (PSCSC), the total increase will be approximately $240 million, 26% less as compared to the $323 million the company requested to recover investments made to increase system diversity and reliability, enhance the customer experience and meet future energy demands for nearly 660,000 customers in the Upstate region of South Carolina.
The increase will be reduced by approximately $84 million through July 31, 2026, to result in a net increase of approximately $156 million. The increase reflects the company’s proposal to mitigate the requested rate increase by accelerating over two years the return of excess deferred income tax benefits resulting from the Federal Tax Cuts and Jobs Act of 2017.
The reduction will expire after two years.
A typical residential customer using 1,000 kWh will experience an increase of $12.53 per month beginning August 1, 2024, upon approval by the PSCSC. Residential rates will increase an additional $6.42 per month for a typical residential customer using 1,000 kWh hours, starting August 1, 2026.
The agreement will also resolve recovery of new investments in highly efficient natural gas, nuclear, solar and hydroelectric units. It will decide recovery of the company’s continued investments in the grid, its new corporate headquarters and environmental compliance costs in this case and allow Duke Energy Carolinas a return on equity of 9.94% and an equity component of the capital structure of 51.21%.
At shareholder expense, it will provide $2 million to fund a collaborative of stakeholders focused on enhancing assistance for low-income customers as well as investments in weatherization programs.
Beginning May 20, the PSCSC will conduct an evidentiary hearing to review the agreement and other issues in the rate review request.
