Duke Energy Announces Rate Hike for South Carolina Customers

Duke Energy has released a plan to gradually increase rates in South Carolina over the next two years.Photo byObserver/The Herald

Duke Energy customers in South Carolina will see an increase in their energy bills starting August 1, 2024. The Public Service Commission of South Carolina has approved Duke Energy Carolinas' request for a rate hike, which will raise the monthly bill for a typical residential customer using 1,000 kilowatt-hours (kWh) by approximately $17.83. This increase is part of a broader effort by Duke Energy to invest in a more reliable and resilient energy infrastructure, enhance customer service, and support the shift towards cleaner energy sources.

Duke Energy requested a rate hike of nearly 20% in January of this year. This increase is the first the company has requested since 2018. According to Duke Energy, the increase will cover the cost of infrastructure upgrades made since 2018. “Making upgrades at Oconee Nuclear Station, improving the efficiency of our Bad Creek Hydro, new poles, new wire and new technology that make outages easier to respond to and quicker in getting the lights back on for our customers,” Ryan Mosier, Duke Energy’s spokesperson, said earlier this year.

Since the rate increase was requested, the Public Services Commission hosted multiple meetings around the Upstate. In each, customers expressed their opposition to the rate increase. “This is not only a hardship for seniors and low-income people, but all people,” said one customer, who suggested the company should cut executive pay before raising rates. “When businesses start getting these increases, they’re going to pass those expenses onto the customers, and that’ll cause even more inflation.”

Another customer voiced frustration, saying, “We do all we can to save. They’ve been preaching for years to switch to fluorescent bulbs. We’ve done that. Then, we went to LED bulbs. We went to energy-efficient appliances. But, the bill keeps going up. It doesn’t make sense.”

In a media release on the approved increase, Duke Energy Carolina said its rates remain below the national average, and the company has multiple energy efficiency programs for users who want to lower their energy bills. The proposed rate hike marks the first requested increase in retail base rates since 2018 and reflects Duke Energy's commitment to modernizing the energy grid and expanding natural gas infrastructure.

To help mitigate the impact of this rate increase, Duke Energy has proposed accelerating the return of excess deferred income tax benefits from the Federal Tax Cuts and Jobs Act of 2017. Without this mitigation, the requested annual revenue increase would be significantly higher. Duke Energy has implemented various energy efficiency programs to help customers manage their energy usage and lower their bills. Additionally, assistance programs are available for customers struggling to pay their energy bills, offering flexible payment arrangements and other support.