Duke Energy’s New Rate Plan Brings a Smaller-Than-Expected Bill Increase
So, here’s what’s happening right now with Duke Energy in Upstate South Carolina, and why a lot of people are breathing a small sigh of relief. A huge rate hike had originally been pitched earlier this year, but after months of negotiations, a new settlement has been reached — and the increase that customers might see next March is now much smaller than anyone expected.
Under this revised plan, a typical residential customer who uses about 1,000 kilowatt-hours per month would see their bill go up by just 84 cents starting March 1. That means a monthly bill would shift from $136.82 to $137.66. Then, two years down the line, there would be another bump of around $4.21, bringing the total to $141.87. It’s still an increase, of course, but far gentler compared to what Duke first proposed — that original plan would have added more than $10 to monthly bills right away.
This smaller adjustment comes from a partial settlement filed with the South Carolina Public Service Commission. It wasn’t just Duke at the table; environmental groups, consumer advocates, business groups, and state agencies all played a role in shaping this revised plan. The idea was to find some middle ground that allows Duke Energy Carolinas to recover the costs of upgrading and strengthening the power grid while also softening the impact on customers who are already struggling with rising living expenses.
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Duke says the extra revenue — now projected at about $74.2 million annually instead of over $150 million — will support improvements to transmission and distribution lines, as well as growing capital costs tied to keeping the grid reliable and resilient. And honestly, with South Carolina’s population booming and energy demand rising, the pressure on the grid has only intensified.
What’s interesting is that this settlement also includes provisions aimed at helping customers better manage their energy use. Environmental advocates pushed for things like expanded energy-efficiency programs, weatherization initiatives, and even solar-plus-battery options. These aren’t just nice extras; they’re expected to help residents reduce both their energy consumption and their long-term bills.
To cushion the increase further, Duke is planning to apply two key credits. The first is a two-year, $100 million flowback of federal tax credits tied to renewable energy production — everything from solar to nuclear to hydropower. The second is a shareholder-funded contribution of $750,000 per year for two years, which offers a little extra relief for customers during this transition.
Of course, all of this is happening at a time when living costs in South Carolina are hitting record highs, and many households — especially lower-income families and seniors — feel the pressure most intensely. Energy prices have been climbing across the country, but South Carolina is expected to see some of the steepest increases in the coming decade.
Still, compared to what could have been a much larger jump, this settlement provides a more manageable path forward. If regulators give the green light, these changes will take effect next March, giving Duke Energy a way to invest in the future of the grid without overwhelming the people who rely on it every day.
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