Duke Energy Progress is proposing close to $3 in monthly fuel savings for its customers beginning this summer.
If approved by the Public Service Commission of South Carolina, the new fuel rates, which would go into effect July 1, would be the lowest since 2006.
On April 28, 2016, Duke Energy Progress made its annual fuel filing with the PSCSC for costs associated with the purchase of fuel.
Under the proposal, typical residential customers using 1,000 kWh per month would see their bills decline from the current $104.77 to $102.00, a savings of $2.77.
Commercial customers would see an average decrease in the fuel charge of about 2.9 percent, and industrial customers would receive an average decrease of about 4.5 percent.
The main reasons for the proposed overall decrease in rates include:
· An $11.2 million decrease in the prior period true-up of fuel costs, as compared to the prior period true-up included in the current bill
Duke Energy Progress makes a fuel cost recovery filing annually in 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.
The PSCSC reviews fuel costs and adjusts the fuel component of customer rates accordingly. By law, the company makes no profit from the fuel component of rates.