Duke Energy Carolinas seeks 7.7% rate increase in South Carolina

Published 01/07/2025, 21:38
Duke Energy Carolinas seeks 7.7% rate increase in South Carolina

GREENVILLE, S.C. - Duke Energy Carolinas, a subsidiary of Duke Energy (NYSE:DUK) - a $92.2 billion market cap utility with a solid 3.5% dividend yield - filed a request with South Carolina regulators for a 7.7% rate increase that would add $10.38 to the monthly bill of typical residential customers using 1,000 kilowatt-hours of electricity.

The utility, which serves nearly 680,000 retail electric customers across 18 counties in South Carolina, is seeking an overall annual revenue increase of $150.5 million. If approved by the Public Service Commission of South Carolina, the new rates would take effect March 1, 2026.

Commercial customers would see an average increase of 5.4%, while industrial customers would face an average increase of approximately 5.2%, according to the company’s announcement.

Duke Energy Carolinas stated the rate adjustment reflects investments made to strengthen the power grid, improve reliability and storm resilience, and maintain its generation fleet. The company cited the effectiveness of its grid investments during Hurricane Helene, when smart self-healing technology automatically restored more than 35,000 customer outages and saved over 153,000 hours of total outage time.

"We know families and businesses are juggling a lot and we do not take a request to increase rates lightly," said Tim Pearson, Duke Energy’s South Carolina president, in the press release statement.

The utility last requested a review of base rates in early 2024. Duke Energy Carolinas provides service to customers in counties including Abbeville, Anderson, Cherokee, Greenville, Oconee, Spartanburg, and York.

Duke Energy Carolinas is a subsidiary of Duke Energy (NYSE:DUK), which operates electric utilities serving 8.6 million customers across six states.

In other recent news, Duke Energy reported strong financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.76, exceeding the forecasted $1.48, and reported revenue of $8.25 billion, which was higher than the anticipated $7.81 billion. BMO Capital Markets responded by increasing Duke Energy’s stock price target to $131 and maintaining an Outperform rating. Jefferies also raised the price target to $138, reiterating a Buy rating, reflecting confidence in the company’s performance and growth potential.

Additionally, Duke Energy is preparing for significant developments, including the Indiana Integrated Resource Plan and further load agreements. The company secured agreements with two data center customers for a total capacity of 1 gigawatt, contributing to expected load growth. Duke Energy’s management reaffirmed their 2025 earnings guidance, projecting an EPS range of $6.17 to $6.42 and maintaining a long-term EPS growth rate of 5-7%. The company is on track to invest $15 billion in capital projects for the year, focusing on extending nuclear station operating licenses and advancing new gas and nuclear technologies.

In corporate news, Duke Energy announced the promotion of Pepper Natonski and Tom Craig to lead its federal affairs division. Natonski will oversee federal affairs, policy, sustainability, and philanthropy teams, while Craig will execute the company’s federal public policy strategy. These leadership changes are part of Duke Energy’s strategic efforts to address the growing needs of customers and communities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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