Duke Energy rate hike proposal would boost bills by 6.6% for residential customers by year end

33833 duke energy rate hike proposal would boost bills by 6 6 for residential customers by year end

Duke Energy Corp. DUK, +1.21% said Wednesday that if its proposal to increase rates is approved by the North Carolina Utilities Commission (NCUC), the average bill will for residential customers will increase 6.6% by Jan. 1, 2023, will rise 9.3% for commercial customers and grow 9.0% for industrial customers. If approved, the Charlotte-based utility’s new fuel and renewable energy adoption rates would go into effect Sept. 1, 2022. At that time, residential rates would go up 7.9% if approved, then fall 1.2% on Jan. 1. The total monthly impact of all rate changes for a typical residential customer using 1,000 kilowatt-hours per month would increase by $6.94 to $112.28. “Rising energy demand as North Carolina emerged from the 2020 COVID-19 shutdowns resulted in a significant increase in fuel needs for power generation, compounded by fuel commodity prices climbing drastically in 2021 due to tight supplies,” Duke Energy said in a statement. “The sharp increase in commodity prices contributed to a $245 million under-recovery across the prior year, when fuel prices climbed sharply right after the company’s annual filing.” Duke’s stock, which rose 1.2% in afternoon trading, has gained 3.5% over the past three months, while the SPDR Utilities Select Sector ETF XLU, +1.32% has tacked on 2.3% and the S&P 500 SPX, +2.12% has lost 3.9%.

Source: Marketwatch

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