Duke Energy Rates to Increase Nov. 1

Observer Reports

Electricity costs will rise beginning tomorrow for Duke Energy customers in South Carolina. The Public Service Commission of South Carolina unanimously approved the rate increases which will be 5.5 percent for home customers and 6.2 percent for businesses.

Duke said the average home customer will pay an extra $9 monthly.

The company is blaming the sharp rise in the cost of fuel for the increased rates. Each year Duke Energy files with the PSCSC for rate hikes based on projected fuel costs.

Duke Energy Carolinas makes a fuel cost-recovery filing annually in South Carolina. The fuel rate is based on the projected cost of fuel used to provide electric service to the company's customers, plus a true up of the prior year’s projection compared to actual costs incurred. The PSCSC reviews fuel costs and adjusts the fuel component of customer rates accordingly.

The company said the increase for all customers this year’s is primarily driven by the increased cost of natural gas caused by national and international demand and tight supplies, plus fuel cost-recovery costs since the previous filing.