Duke Energy reaches compromise with opponents on SC rate hike

SOUTH CAROLINA — Duke Energy Progress has reached a comprehensive settlement with all groups involved in its proposed $90 million rate hike in South Carolina and hopes to file details with the S.C. Public Service Commission on Thursday.

Duke Energy Corp. and the intervenors reached by the Charlotte Business Journal declined to discuss details of the settlement until it is filed. It is certain to reduce Duke’s initial request, but how much of a reduction is not clear at this point.

For instance, the Office of Regulatory Staff, South Carolina’s utility customer advocate and a party to the settlement, had proposed Duke’s rate hike should be no more than $49.2 million, roughly 55% of the increase Duke asked for.

Duke sought a 10.2% return on equity in its initial proposal. That is well above the 9.5% return on equity it is now allowed. And the ORS had proposed it should be 9.4%. That difference alone would have made millions of dollars’ worth of difference in the increase.

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