Duke Energy announced on Apr. 15 that it has filed requests with the North Carolina Utilities Commission to recover fuel and purchased power costs incurred during an extreme winter period, when record energy demand required the company to buy electricity from other utilities. The increased costs will be reflected in customer rates starting June 1.
The announcement comes after a surge in electricity use across North Carolina during late January and early February, as temperatures dropped 10 to 20 degrees below normal. Duke Energy reported that on Jan. 27, energy demand reached a new winter peak of 37,308 megawatt-hours, marking the highest level ever recorded on its Carolinas system.
“When customers need power the most – during extreme cold or heat – reliability is not optional,” said Kendal Bowman, Duke Energy’s North Carolina president. “Our responsibility is to deliver electricity safely and reliably, even when demand exceeds what our system can supply on its own.” To maintain service during these conditions, Duke Energy relied on regional utilities for supplemental power at elevated market prices.
North Carolina’s ongoing economic and population growth continues to drive year-round increases in electricity demand. Over the past two years, Duke Energy has added about 150,000 customers in the state—mainly residential and small business accounts—and companies have announced projects expected to bring more than 35,000 jobs and $24 billion in investment statewide in just one year.
To meet future needs and reduce reliance on purchased power from other utilities, Duke Energy plans to add nearly 19,600 megawatts of new generation capacity over the next decade. This includes building new plants in Person County (North Carolina) and Anderson County (South Carolina), along with upgrades to grid infrastructure and expanded energy storage capabilities.
The company’s filings request recovery of approximately $500 million for Duke Energy Carolinas customers and $309 million for those served by Duke Energy Progress—costs which reflect actual expenses without markup. To lessen immediate impacts on consumers’ bills, Duke proposes spreading these costs over a period of nineteen months instead of twelve. If approved by regulators, typical residential customers using 1,000 kilowatt-hours per month would see monthly increases ranging from about $6.90 (Duke Energy Carolinas) to $7.88 (Duke Energy Progress) beginning June 1.
Bowman said: “Energy conservation helps manage costs, but long-term reliability requires new infrastructure… Meeting customer demand – today and in the future – means investing in a system that can perform under the most extreme conditions.”
