Duke Energy receives NCUC approval for new electric rates
Duke Energy Carolinas has received approval from the North Carolina Utilities Commission (NCUC) for its proposed settlement in the company's request to increase electric rates for its customers in North Carolina, US.
Duke Energy North Carolina president Brett Carter said the company believes the settlement balances the company's need to recover investments made in the electric system with the reality that many of our customers face continued economic challenges.
Duke Energy Carolinas will increase its electric rates in North Carolina by around $309m, representing an average increase of 7.2% for most customers.
The typical residential customer's bill will increase by about $7, and in the company's decision, the commission also ordered some rate design modifications.
Additionally, Duke Energy has agreed to contribute $11m of shareholder money to community non-profits to help low income residents in North Carolina with their energy-related costs.
Under the approved settlement, the company is allowed a return on common equity of 10.5% with a 53% common equity component.
As part of Duke Energy Carolinas' modernization plan, two new power plants will begin producing electricity for customers in 2012.