This press release from Duke Energy delivers some good news to NC households – rates are going down. But thanks to the renewable energy portfolio standards (REPS), however, rates will be higher than they would have been otherwise.
Duke Energy Progress customers in North Carolina will see a decrease in overall rates effective Dec. 1, 2015. The lower rates reflect annual adjustments to charges for fuel, compliance with the state's renewable energy portfolio standard (REPS) and a new Joint Agency Asset Rider as approved by the N.C. Utilities Commission (NCUC).Delivering fuel charge savings
Total fuel costs projected for the upcoming year are declining due to a drop in commodity prices. In addition, a decrease in the prior period true up served to further lower the fuel charge.
Duke Energy Progress filed for an increase in the charge to customers for the utility's compliance with the state's renewable energy portfolio standard. As approved, the REPS charge will increase $0.34 per month for residential customers,$0.55 per month for commercial customers and $36.30 per month for industrial customers.
The increase to the REPS charge reflects increases in actual and projected compliance costs driven by the increase in the utility's overall compliance obligation. The REPS requirement increases from 3 percent of North Carolina retail sales in 2014 to 6 percent of North Carolina retail sales for years 2015-2017, with additional step ups effective in 2018 and 2021. (emphasis added)
The bottom line: your electric bill will be higher thanks to state government mandates requiring utilities to use "renewable" energy.