Duke Energy announced on Apr. 15 that it has filed requests with the North Carolina Utilities Commission to recover fuel and purchased power costs incurred during an extreme winter period earlier this year. The company said these costs, which will begin affecting customer rates on June 1, were driven by record energy demand resulting from cold weather across North Carolina.
The filings come after late January and early February saw electricity use exceed what Duke Energy’s existing power plants and storage resources could supply. To maintain reliable service for homes and businesses during prolonged freezing conditions, the utility purchased additional electricity from neighboring utilities at elevated market prices.
Kendal Bowman, Duke Energy’s North Carolina president, said, “When customers need power the most – during extreme cold or heat – reliability is not optional. Our responsibility is to deliver electricity safely and reliably, even when demand exceeds what our system can supply on its own.”
During sustained subfreezing temperatures—10 to 20 degrees below normal—energy use surged across the Carolinas. On Jan. 27, demand reached a new winter peak of 37,308 megawatt-hours—the highest ever recorded for Duke Energy’s Carolinas system.
To address future growth and reduce reliance on external purchases, Duke Energy plans to add 19,600 megawatts of new generation capacity over the next decade through new plants in Person County (North Carolina) and Anderson County (South Carolina), along with grid upgrades and energy storage investments. “Energy conservation helps manage costs, but long-term reliability requires new infrastructure,” Bowman said.
The company’s filings request recovery of approximately $500 million for Duke Energy Carolinas and $309 million for Duke Energy Progress related to extraordinary fuel and purchased power expenses during the winter period. To ease immediate impacts on customers, recovery would be spread over nineteen months instead of twelve if approved by regulators.
Typical residential customers using 1,000 kilowatt-hours per month would see monthly increases of about $6.90 for Duke Energy Carolinas or $7.88 for Duke Energy Progress starting June 1 if proposals are accepted.
Duke Energy offers programs such as energy efficiency initiatives, budget billing plans, payment options and financial assistance partnerships to help customers manage their bills.
