• The PSCSC will adjust the fuel component after reviewing the cost of the fuel rates
   
• New rates would go into effect from 1 October this year if the proposal is approved

Duke Energy Carolinas, a provider of gas and electric services, recently made an annual filing with the Public Service Commission of South Carolina (PSCSC) on July 30, in relation to the costs of purchasing fuel that enables the generation of electricity in their power plants.

Apparently, the PSCSC adjusts the fuel component after reviewing the cost of the fuel rates and as per the law, Duke Energy does not make in profit from the fuel component in electricity bills.

According to reports, if the filing is approved, the monthly impact would likely be an increase by $2.21 for residential customers living in South Carolina, who use 1000 kWh every month. The commercial customers would experience a surge of around 0.7 percent in the fuel charge, while the industrial customers would see an average rise of around 1.7 percent.

The company had reportedly postponed collecting an amount of $34 million in fuel costs the previous year in order to lower the impact on the bills of the customers, which is also one of the main reasons why the increase was proposed.

The impact will be minimized owing to the expected lowering of fuel costs. The fuel component rate is usually based on estimated prices of fuel that is used to provide electricity services to the customers of the company, including a true-up of the projection of the previous year. The new rates will be going into effect from 1 October this year, if it is approved.

For the record, Duke Energy Carolinas manages its fuel contracts to keep the cost of fuel down. The joint generation fleet of Duke Energy in the Carolinas allow for some savings that help in minimizing the fuel costs for the company. The company serves customers mainly in the Upstate of South Carolina.

Source Credit- https://news.duke-energy.com/releases/duke-energy-carolinas-proposes-annual-update-to-fuel-charges-for-south-carolina-customers-6769378