Duke Energy Progress Customers to See Fuel Cost-Recovery Savings

Duke Energy Progress’ 3.3 million customers in North Carolina will see more than $5 in savings on their monthly bills in 2017, if the company's annual fuel cost-recovery filings (Docket No. E-7 Sub 1108) are approved by the North Carolina Utilities Commission (NCUC).

Overall energy costs would decrease by about 4.9 percent for residential customers, by 6.3 percent for commercial customers, and by 5.7 percent for industrial customers -- keeping the cost per kilowatt-hour (kWh) about 20 percent below the national average, the utility said.

The total impact of all rate changes for a typical residential customer using 1,000 kWh/month would be a decrease of $5.38 – from $110.04 to $104.66 per month.

Among the reasons for the proposed overall decrease are the following:

• Total fuel costs projected for the upcoming year are declining due to a drop in commodity prices;
• A decrease in the prior period true-up of fuel costs is included in the proposed fuel rate; and
• Fuel cost savings also are associated with Duke Energy Progress' purchase of North Carolina Eastern Municipal Power Agency's ownership share in certain generation assets, which closed in July 2015.

Duke Energy Progress makes a fuel cost-recovery filing annually in North 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 NCUC 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.