Dive Brief:
- Energy efficiency programs in South Carolina have helped reduce Duke Energy Progress' peak demand by 9%, but that apparently isn't enough to keep rates from rising.
- The utility has asked state regulators to approve a modest rate increase aimed at paying for the programs; new rates would go into effect next year.
- In Florida, however, Duke's customers will see an approximately 3% reduction in their bills, which officials attribute to cost management and careful planning.
Dive Insight:
In South Carolina, Duke's energy efficiency programs are helping reduce peak demand but customers are still going to see their bills rise. But the utility cautioned that rates were going up largely due to a reduction in the recovery period for program costs and the inclusion of additional costs and incentives.
Duke filed last week with the Public Service Commission of South Carolina to recover the costs of associated with programs. According to the utility, average residential customers using 1,000 kWh each month will see their bills increase $3.07, from about $101.20 per year to $104.27.
For non-residential customers, Duke said the impact will vary based on the opt-out elections made by the customer. A non-residential customer that participates in all of the company's programs and pays all rider amounts would see an increase of $3.57 per month for 1,000 kWh usage.
The energy efficiency/demand-side management charge on a customer's bill covers a portion of the cost of implementing energy efficiency programs, Duke said, as well as providing incentives to help customers take control of their energy usage and save money. The charge is reviewed annually by regulators.
The news was better for Florida customers, however. Duke said they would see lower rates for the second time in three years, if its 2016 filings are accepted by the state's Public Service Commission.
Duke said if all of its 2016 rate filings are approved and the company issues low-interest bonds as planned, customers using 1,000 kWh will see a decrease of approximately $4.18/month, or more than 3%.
"We continue to work hard to provide the best possible price for our customers," Alex Glenn, president of Duke Energy's Florida operations, said in a statement. "Our successful cost management and careful planning is helping lower customer rates while we invest in affordable, clean energy and improve reliability for our customers every day. If approved as planned, our customers will be paying nearly 15% less for electricity than they were six years ago."