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Duke Energy Progress proposes rate increase

Staff Report //April 30, 2018//

Duke Energy Progress proposes rate increase

Staff Report //April 30, 2018//

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Duke Energy Progress is proposing an increase in monthly fuel costs for its South Carolina customers beginning this summer as part of an annual adjustment of the actual cost of fuel used to generate electricity at its power plants.

The company made its annual fuel filing Friday. If approved by the Public Service Commission of South Carolina, the new fuel rates would go into effect July 1, according to a news release.

Under the proposal, residential customers using 1,000 kilowatt-hours per month would see their bills increase from the current $121.47 to $124.71, an increase of $3.24, or 2.7%, the release said. Commercial customers would see an average increase in their bills of about 1.1%, and industrial customers would receive an average increase of about 2.4%.

Duke Energy Progress reports the main reason for the proposed overall increase in rates is an under-collection of projected fuel costs of $23.4 million for the prior period. The proposed increase would affect the bills of all Duke Energy Progress customers in South Carolina. The company's other South Carolina utility, Duke Energy Carolinas, will make its annual fuel filing in July, the release said.

Duke Energy Progress makes a fuel cost recovery filing annually with the Public Service Commission of South Carolina. The fuel rate is based on the projected cost of fuel used to provide electric service to the company's customers, plus a true-up of the prior year's projection. By law, the company makes no profit from the fuel component of rates, the release said.