Duke Energy Agrees to Cut Rate Increase by Nearly 50%

Duke Energy's (NYSE: DUK  ) Carolinas subsidiary has reached a compromise that includes a lower rate increase than it had wanted. The utility announced Tuesday that South Carolina regulators have cut its rate-increase request nearly in half, dropping its annual increase in retail revenue from the $220 million it had requested to about $119 million.

The original request would've increased retail revenues by 15.1%. With the new agreement, rates will edge up 8.16% over a two-year period.

"We believe the settlement reflects an appropriate balance between the needs of our company and those of our customers," said Duke's South Carolina State President Clark Gillespy in a statement. "If approved, this agreement will allow us to keep the rate increase to customers as low as we reasonably can, and still recover the investments we've made to modernize our system and to ensure safe, reliable and increasingly clean electricity for the future."

Duke has also agreed to hold off on additional rate increase requests until September 2015, and will contribute $3.5 million to various public assistance programs, including the subsidization of low-income household electricity bills.

Duke Energy Carolinas owns nuclear, coal-fired, natural gas, and hydroelectric generation facilities. It provides some 20,000 megawatts of owned electric capacity to 2.4 million customers in a 24,000-square-mile area of North Carolina and South Carolina.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2555369, ~/Articles/ArticleHandler.aspx, 10/23/2014 7:57:02 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement