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North Carolina Rate Case

N.C. Rate Case

North Carolina Utilities Commission approves rate increase for Duke Energy Progress' North Carolina customers

On May 30, 2013, the North Carolina Utilities Commission (NCUC) approved Duke Energy Progress’ proposed settlement in the company’s request to increase electric rates for its North Carolina customers.

Under the terms of approval, the total rate increase will be implemented over two years. Electric rates will increase by $147.4 million, or an average of 4.5 percent, beginning June 1, 2013. Rates will increase by an additional $31.3 million, or 1 percent, beginning June 1, 2014. The total increase in rates over the two-year period will be $178.7 million, or an average increase of 5.5 percent for all customers.

The year two increase accounts for $31.3 million in costs associated with the construction of new natural gas combined-cycle generation at the Sutton Plant in Wilmington, N.C. 

The following chart illustrates the proposed net rate increases by customer type:

Average Net Rate Increase Percentage

Retail

Residential

Small General Service

Medium General Service

Large General Service

Year 1

4.5 percent

6.5 percent

4.2 percent

3.5 percent

2.7 percent

Year 2

5.5 percent

7.5 percent

5.1 percent

4.5 percent

3.6 percent

This table shows the average impact of the proposed changes for each customer class. The specific increase or decrease for individual customers will vary depending on the rate they pay and other factors.

More details

The bill for an average residential customer using 1,000 kilowatt-hours (kWh) of electricity per month would increase to $111.39 from the current $104.06. That includes an increase in the basic customer charge to $11.50 per month from the current $6.75.

Even with the approved rate increase, the company’s rates remain below the national average.

The entire rate order can be viewed at the NCUC website (NCUC Docket # E-2, Sub 1023). You can read the complete news release about the rate increase here.

The approved settlement was agreed upon by Duke Energy Progress and the N.C. Public Staff, which represents the public interest in a rate proceeding. Duke Energy Progress originally requested an average increase in retail revenues of 11 percent, or $359 million.

The proposed rate increase reflects an investment of around $2.3 billion for plant modernization and other capital additions, including the facilities used to produce and deliver electricity to 1.3 million households in North Carolina.

Since its last rate case in 1987, Duke Energy Progress has invested $11 billion to modernize the power plants that generate electricity and update the electric system.

These improvements have helped Duke Energy Progress achieve a reliability rate of 99.97 percent, while reducing emissions and generating electricity more efficiently than ever before. Investments in advanced emission-control technologies have helped lower nitrogen oxide emissions by more than 62 percent and sulfur dioxide emissions by more than 50 percent, since 2005.

The approved rate increase will be used to recover investments already made to modernize the system and ensure safe and reliable service for customers every day.

We know that there’s never a good time to seek a rate increase. We are committed to minimizing the impact of increased costs on our customers through energy-efficiency programs and through assistance for low-income customers and those experiencing financial crisis. Learn more here.



Duke Energy Progress is a subsidiary of Duke Energy. The recently merged companies include two N.C. utilities, Duke Energy Progress and Duke Energy. The rate request addressed in the Duke Energy Progress filing affects Duke Energy Progress customers in North Carolina only.