GRC: Duke Energy seeks whopping fixed-charge increases in three states

Duke Energy is seeking significantly higher fixed charges for residential customers in its four open rate cases. These proposed increase range from 51% to 280%, as detailed below:

  • In Kentucky, Duke Energy Progress has proposed raising its monthly fixed charge for residential customers from $4.50 to $11.22.
  • In North Carolina, Duke Energy Carolinas has proposed raising its monthly fixed charge for residential customers from $11.80 to $17.79
  • In North Carolina, Duke Energy Progress has proposed raising its monthly fixed charge for residential customers from $11.13 to $19.50.
  • In Ohio, Duke Energy Ohio has proposed raising its monthly fixed charge for residential customers from $6.00 to $22.77. (Current total residential fixed charges, including riders, amount to $11.22.)

In June 2015, the National Association of State Utility Consumer Advocates (NASUCA) adopted a resolution (Resolution 2015-1) that strongly opposes higher fixed charges. Specifically, the NASUCA resolution opposes proposals by utilities that seek to increase the percentage of revenues recovered through flat, monthly customer charges on residential bills and the imposition of straight fixed variable (SFV) rates. The resolution also urges state regulators to reject gas and electric utility rate-design proposals to substantially increase the percentage of revenues recovered through the flat, monthly customer charges on residential customers’ bills. According to NASUCA, these proposals disproportionately and inequitably increase the rates of low-usage customers, a group that often includes low-income, elderly and minority customers.