Duke Progress Energy cuts rates
By Rochelle Moore
Published in News on December 18, 2016 1:45 AM
Duke Energy Progress customers will be paying lower electric rates following rate changes in December and January.
A rate decrease went into effect Dec. 1 that reduces residential rates by 6.5 percent, commercial rates by 7.2 percent and industrial rates by 7 percent.
The monthly charge for a typical residential customer using 1,000 kilowatt hours of electricity will decrease from about $110 to $103, resulting in a savings of $6.81, according to Duke Energy.
The drop in rates is being driven by lower fuel costs, including natural gas, said Meredith Archie, Duke Energy spokeswoman.
Another rate change will take hold on Jan. 1, but the overall net effect will leave customers paying less for electricity.
"Ultimately, there's a slight decrease even with the slight adjustment on Jan. 1," Archie said. "The slight bump you'll see in January are just changes around our energy efficient programs."
In January, residential rates will increase by 1.4 percent, commercial rates by 0.5 percent and industrial rates by 0.2 percent. The residential rate for Duke Progress Energy customers will be 10.25 cents per kwh, Archie said.
The December and January rate changes reflect an overall decrease of 5.1 percent for residential customers, 6.7 percent for commercial customers and 6.8 percent for industrial customers.
The result will lead to residential customers paying an estimated $5.34 less per month than they were prior to the rate changes.
Duke Energy is working to maintain lower fuel and fuel-related rates by operating a mix of energy sources including nuclear, coal and natural gas, maintaining efficiency in its nuclear fleet, and fuel procurement strategies that reduce volatility in supply costs, according to company officials.
"We work around the clock to bring to bring our customers reliable electricity at affordable rates," said David Fountain, Duke Energy president-North Carolina. "Through our generation operations and fuel procurement practices, we have delivered more than $722 million in fuel and joint dispatch merger savings to our customers since 2012."
The rate adjustments were approved by the N.C. Utilities Commission, during its annual review and in compliance with state renewable energy portfolio standards.
A drop in fuel costs due to lower commodity prices also drove electric rates down a year ago for Duke Energy Progress customers. Residential rates decreased by 3.3 percent, commercial customer rates declined by 4.1 percent and industrial rates dropped by 2.7 percent.
Duke Energy, one of the largest electric power holding companies in the nation, provides electricity to nearly 7.4 million customers, representing 24 million people, in the Southeast and Midwest.
Headquartered in Charlotte, Duke Energy also distributes natural gas to more than 1.5 million customers in North and South Carolina, Ohio, Kentucky and Tennessee.