Duke Energy Progress, LLC
Request to Raise Electric Rates
Docket No. E-2 Sub 1219

On October 30, 2019, Duke Energy Progress, LLC (DEP), filed an application with the Commission requesting authority to increase its rates for electric service in order to produce an additional $585.9 million in retail base revenues, an increase of about 15.6% over current revenues. For a residential electric customer using 1,000 kilowatt-hours per month, the current monthly bill of $120.44 would increase to $137.73 under DEC’s proposal.

In its application, DEP stated that its request is driven by investments it has made since its 2017 rate case in Docket No. E-2 Sub 1142, including:

  1. Retiring, replacing, and upgrading generation plants, including the upcoming retirement of the Asheville Steam Electric Generating Plant in December 2019.
  2. The Company’s investments to modernize and maintain its transmission and distribution systems.
  3. Costs incurred to restore service to customers after Hurricanes Florence, Michael, and Dorian and Winter Storm Diego.
  4. Deployment of advanced metering infrastructure, which includes smart meters.
  5. Compliance with environmental regulations related to coal combustion residuals, including ash basin closure activities to satisfy federal and state regulatory requirements.
  6. Depreciation rate changes from the Company’s most recent depreciation study, including efforts to reduce the Company’s reliance on coal by accelerating the expected remaining lives of some of the Company’s coal-fired generation facilities for depreciation purposes.


Additionally, the Company is requesting an accounting order for approval to:

  1. Continue the deferral for coal-related environmental compliance costs incurred after the February 29, 2020 cut-off date for this rate case.
  2. Establish a regulatory asset for the deferral of all costs, not included in this case, related to the Grid Improvement Plan beginning January 1, 2020, for cost recovery consideration in future general rate cases.
  3. Establish a regulatory asset to defer $34.9 million of severance costs beginning when rates go into effect, to be amortized over a three year period.
  4. Establish a regulatory asset to defer Hurricane Dorian’s incremental storm costs.
  5. Establish a regulatory asset for the deferral of the remaining net book value of the Roxboro Wastewater Treatment plant determined at the time of its anticipated early retirement in mid-to-late 2020.
  6. Establish a regulatory asset to defer the incremental operations and maintenance expenses, depreciation expense, property taxes, and return associated with the Asheville Combined Cycle plant from the date the plant is expected to go into service, December 2019, until new rates go into effect.


The Commission has scheduled five hearings to receive testimony from DEP’s customers, as well as an expert witness hearing beginning May 4, 2020, for testimony and cross-examination of expert witnesses.

Date Time Location Docket Description of Proceeding
Public Witness Hearings:
2/27/2020 7:00pm Richmond County Judicial Center, Jury Assembly Room, 3rd Floor, 105 W Franklin Street, Rockingham E-2 Sub 1219 Duke Energy Progress Application to Raise Electric Rates
3/02/2020 7:00pm Hearing Room 2115, Dobbs Building, 430 N Salisbury, Raleigh E-2 Sub 1219
Duke Energy Progress Application to Raise Electric Rates
3/03/2020 7:00pm New Hanover County Courthouse, Courtroom 317, 316 Princess Street, Wilmington E-2 Sub 1219 Duke Energy Progress Application to Raise Electric Rates
3/04/2020 7:00pm Greene County Courthouse, 301 North Greene Street, Snow Hill E-2 Sub 1219 Duke Energy Progress Application to Raise Electric Rates
3/12/2020 7:00pm Buncombe County Courthouse, Courtroom 1A, 60 Court Plaza, Asheville E-2 Sub 1219 Duke Energy Progress Application to Raise Electric Rates
Expert Witness  Hearing
5/04/2020 2:00pm
Postponed
Hearing Room 2115, Dobbs Building, 430 N Salisbury Street, Raleigh E-2 Sub 1219 Duke Energy Progress Application to Raise Electric Rates

Here is information about providing testimony at a public hearing.

Weapons are strictly prohibited at Commission hearings, and everyone entering the building must pass through a metal detector.

Customers can also submit a written statement to the Commission via email. Be sure to include the docket number in the subject line. Another option is to mail a statement to the Commission at the address below. In either case, after two or three business days, statements are made part of the official record for the proceeding, and can be viewed on this website via Docket Number E-2 Sub 1219CS.

The Commission has also scheduled an evidentiary hearing for expert witness testimony which will begin at 2:00 p.m. on May 4, 2020, in Commission Hearing Room 2115, Dobbs Building, 430 N. Salisbury, Raleigh. There will not be an opportunity for public comments at this hearing, but the public is welcome to attend.


The Public Staff – North Carolina Utilities Commission is a separate, independent agency that represents the using and consuming public in matters before the Commission, including rate increase requests like this one. You can send the Public Staff a statement, or ask them a question, via email.


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