Duke Energy Carolinas has agreed to reduce its electricity rates in North
Carolina by $233 million annually after earlier asking for a $140-million
annual increase, filings show.
In an agreement and partial settlement filed with the North Carolina
Utilities Commission late Friday, Duke said the rate cut is possible because
it would delay the recovery of $901 million in environmental compliance costs
until it next files for a rate increase, probably in 2010.
The rate reduction would increase industrial customers' rates by 12.7%.
Residential customers would receive a 3.8% reduction. The new rates will go
into effect January 1, when a five-and-a-half year rate freeze expires.
The agreement was reached with the PUC staff, the state attorney
general's office, Carolina Utility Customers, Carolina Industrial Group for
Fair Utility Rates and Wal-Mart Stores East.
The agreement leaves several contested issues for the PUC to resolve
including the treatment of cost savings from the Duke Energy/Cinergy merger.
Under the agreement, construction work in progress expenses for the new
Cliffside power plant incurred as of August 31 will not be included in Duke
Energy Carolina's base rates.
The company, which has spent about $1.9 billion on environmental
compliance upgrades, agreed to complete the collection of $1 billion of those
costs by December 31.