Duke Energy Progress is cutting its residential rate in North Carolina by 4.5%, effective this week, in its annual adjustment for fuel costs at electric power plants.
A typical residential customer in North Carolina using 1,000 kilowatt-hours per month will see an overall decrease of $7.34, or about 4.5% lower than prior rates. That average customer will be charged $154.63 versus $161.97 previously, the company said.
Commercial customers, such as office buildings and retail stores, will see an average decrease of about 6.3%, Duke said. Industrial customers will have an average decrease of less than 0.1%.
Duke says the rate is 11% below the national average of $174.21, or about $235 per year. The Charlotte-based utility has traditionally had lower rates than the national average because of its efficient operation of nuclear and coal-fired power plants. The company is eliminating its reliance on coal over the next few years for environmental reasons. It is expanding its reliance on natural-gas fired power plants, which the company contends have a less negative impact on air quality.
Duke Energy Progress serves about 1.5 million customers in central and eastern North Carolina, including Raleigh and Asheville regions. It has another 200,000 customers in South Carolina.
A similar decrease for Duke Energy Carolinas customers will go into effect on Jan. 1, with residential rates declining about 3.6%. Duke Energy Carolinas includes the Charlotte and Triad regions, along with much of upstate South Carolina, including Greenville-Spartanburg.
The North Carolina Utilities Commission annually reviews fuel costs. It also examines state programs to encourage clean energy adoption and ways to reduce energy use. The commission issued its order for the annual adjustment on Nov. 13.
Duke Energy is among the largest U.S. electric utilities with 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. It owns 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky.
