Settlement Reached in Duke Energy Progress Rate Increase

Columbia, S.C.- The Sierra Club, Duke Energy Progress, and other stakeholders reached a settlement agreement this week on the utility's proposed rate increase before state regulators. The Sierra Club only signed onto the large load settlement agreementwith Duke related to new customers like data centers, and did not oppose other stakeholder settlements related to energy efficiency and revenue requirements.

The large load settlement the Sierra Club supports requires parties to file a joint petition with state utility regulators to open a generic docket to discuss the impacts of new large load customers, like power-hungry data centers. The docket will enable parties to file or present comments on strategies like large load tariffs that state regulators could adopt to protect families and businesses from the rate shock associated with building power plants and other infrastructure to serve new data center customers. When properly designed, large load tariffs can require new large customers to pay their fair share of new power plant costs through minimum bills and multiyear contracts to purchase power along with exit fees if they break that contract.

RMI provides design principlesof large load tariffs. This consumer protection tool is important because new large customers can require a massive amount of electricity, sometimes equal to the size of a large city. It will ultimately be up to the South Carolina Public Service Commission to decide if it will require a large load tariff, and what the terms of that consumer protection rule will look like for customers.

Groups that signed the large load settlement include Duke Energy Progress, the Sierra Club, the South Carolina Department of Consumer Affairs, South Carolina Coastal Conservation League, Southern Alliance for Clean Energy, Upstate Forever, Vote Solar, and the South Carolina Small Business Chamber of Commerce.

Regarding the rate impacts, the average Duke Energy Progress residential customer will see their bill go up $11.23 per month, a 7.8% increase. The utility originally proposed a $21.66 per month increase. Duke also proposed an increase to the basic monthly service charge from $11.78 to $13.00, which was eliminated in a final settlement agreement, keeping the fixed monthly charge at $11.78.

Duke Energy Carolinas also has a pending rate increase for its customers before state regulators.

Statement from Paul Black, Sierra Club's Senior Campaign Organizer in South Carolina:

"The undeniable truth around the country is that new power-hungry customers like data centers are increasing demand for electricity, and unless utility regulators enact consumer protections, average customers like families and small businesses will see our monthly bills go up even more to pay for new power plants. States like Kansas are protecting existing customers from rate shock due to data center demand for electricity, and we need South Carolina's utility regulators to do the same."

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.