Another regulatory victory for the SC Small Business Chamber

The South Carolina Public Service Commission has approved the settlement reached between the South Carolina Small Business Chamber of Commerce, Duke Energy, SC Office of Regulatory Staff and other intervenors in Duke’s recent rate hike request.

This is another big victory for the work of the SC Small Business Chamber. Our track record of successfully fighting utility rate hike requests in our state has been exceptional.  In this case we negotiated a reduction of over 75 percent from Duke’s originally proposed 14 percent electric rate hike on small businesses.

Duke’s small business customers will now see a 2.29 percent increase the first year and 1.13 percent the second year for an overall increase of only 3.42 percent.

Below is a story form GSA Business.
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GSA Business
September 12, 2013

Regulators approve Duke’s rate hike

Staff Report
gsanews@scbiznews.com

Duke Energy’s $118.6 million rate increase approved by the South Carolina Public Service Commission will raise rates by 3.42% over two years for small businesses, down from the 14% first proposed by the utility.

Overall, the PSC approved an average 6.42% increase for businesses, 7.34% for industrial customers and 10.16% for residential customers.

Frank Knapp, president and CEO of the S.C. Small Business Chamber of Commerce, has described the negotiated agreement as a “very good result for small businesses in the Duke service area.”

Overall, the PSC-approved settlement that increases electricity rates for about 540,000 households and businesses in South Carolina rate case reduces Duke’s original $220 million rate request by almost half. The approved agreement also reduces Duke’s proposed 11.25% return on common equity — the maximum profit margin — to 10.2%.

The utility’s request for its third increase in three years prompted howls of opposition at a series of public hearings. About 1,700 people registered with the PSC as opponents.

Before the PSC’s July 31 hearings on the rate request, the Charlotte, N.C.-based utility reached a settlement agreement with the state’s utility watchdog agency, the S.C. Office of Regulatory Staff, and a lineup of intervenors that included the small business chamber’s leader.

Overall, instead of an average increase of 15.1% that was first proposed to generate another $220 million annually, starting Wednesday customers will pay an average of 5.53% the first year and 2.63% more starting in September 2014.

In addition to the rate increase, the PSC directed Duke Energy to use $3.5 million at shareholder expense to provide $2.5 million for public-assistance programs, manufacturing competitiveness grants, economic development and/or education-workforce training programs. Another $1 million will be allocated by the utility through the Office of Regulatory Staff to support senior outreach and public education initiatives.

Duke Energy said the increase is needed to pay for facility upgrades. Ryan Mosier, a spokesman for the utility, has said the agreement “achieves a balance between the concerns for our customers and the need to recover the investments we’ve made in the system.

https://www.gsabusiness.com/news/48844-regulators-approve-duke-rsquo-s-rate-hike

 

Settlement with Duke Energy close

Yesterday the SC Office of Regulatory Staff filed a proposed settlement between Duke Energy and most of the parties that have intervened in the rate case.  You can read the “stipulation”here.

The settlement is not a done deal and could fall apart.  But it shows the importance of being involved in the regulatory process to advocate for your constituents.  While several business organizations have appeared at the recent public hearings in Spartanburg, Greenville and Anderson to sing the praises of Duke’s philanthropy and providing of energy instead of voicing objection to a 14% rate hike on their members, the Small Business Chamber has been the advocate solely for the small businesses of the state in opposing the rate hike. 

The South Carolina Small Business Chamber is in agreement with the stipulation as long as the details, most of which are not evident in the document, come to fruition as discussed in the negotiations.  The small businesses in Duke’s service area will be very pleased if this comes to fruition.

Opposing Duke Energy’s Rate Hike

On Saturday, the president and CEO of the South Carolina Small Business Chamber of Commerce filed his direct testimony in Duke Energy ‘s electric rate case before the state’s Public Service Commission.

Duke is seeking a 15.1% average increase for all customers and 14% for small businesses. 

Mr. Knapp’s testimony argues that the company’s request is unjustified both in its entirety and specifically for small businesses.  You can read the full testimony here.

Here are the key points Mr. Knapp makes in his testimony:

-Duke is requesting a far higher return on equity than is necessary for the company to be profitable.

-Duke is not offering its customers On-Bill financing to help them afford to make energy efficiency improvements to their homes or businesses in order to save money on their utility bills.

-Duke has used its influence to block legislation that would remove the biggest barrier to customers using solar energy by allowing third parties to purchase and install solar panels on buildings and then selling the electricity it to the occupants.

-Duke’s proposed rates forces small businesses to unfairly subsidize all other classes of customers including big businesses.

You can find the full testimony here.

Public Hearing on Duke Energy's Proposed Rate Hike Thursday in Anderson

Public hearings on Duke Energy's proposed average 15.1% electric rate hike continue tomorrow night, June 27th,  in Anderson. That hearing will start at 6 PM in the Anderson Civic Center, Ballrooms A&B, 3027 MLK Jr. Blvd., Anderson.

Attend the hearing and let the SC Public Service Commission know how you feel about the rate hike. The SC Small Business Chamber is intervening in the rate case to oppose the rate increase. More on that later.

The next public hearing will be held on August 1^st  evening at 6PM in Columbia at the Public Service Commission, 101 Executive Cener Drive, Columbia.

Public Hearing on Duke Energy's Proposed Rate Hike Tonight in Greenville

Public hearings on Duke Energy's proposed average 15.1% electric rate hike continue tonight in Greenville. That hearing will start at 6 PM in the Greenville County Council Chambers, 301 University Ridge, Suite 2400, Greenville.

Attend the hearing and let the SC Public Service Commission know how you feel about the rate hike. The SC Small Business Chamber is intervening in the rate case to oppose the rate increase. More on that later.

 

The next public hearing will be held this Thursday evening at 6PM in Anderson at the Anderson Civic Center.

 

 

Small Business Chamber opposes Duke rate hike

GSA Business Journal
June 21, 2013

The president of the S.C. Small Business Chamber of Commerce said before the first public hearing on Duke Energy’s request for a third rate increase since 2010 that the request is “not justified and particularly not justified for small businesses.” Frank Knapp Jr. has filed as an intervenor in the rate case.

By Bill Poovey

The president of the S.C. Small Business Chamber of Commerce said before the first public hearing on Duke Energy’s request for a third rate increase since 2010 that the request is “not justified and particularly not justified for small businesses.”

Frank Knapp Jr. has filed as an intervenor in the rate case.

“We are opposing the proposed rate hike,” said Knapp, whose Columbia-based group has more than 5,000 members. “There is no justification for it. The rate of return on equity is way too high.”

The utility is seeking to increase rates by an average of 15.1% to boost revenues by $221 million annually.

The request would increase rates by an average 16.3% for residential customers, 14% for commercial customers and 14.4% for industrial users. Duke Energy’s rates in South Carolina are among the lowest in the Southeast, but rates are determined in part by utilities’ profit margins, or return on equity. Duke is requesting a return on equity of 11.25%, up from 10.5%. The PSC will determine whether to allow that increased profit margin and decide what the 540,000 retail customers in the state can afford.

Ryan Mosier, a spokesman for the utility in Greenville, said previously that the rate increase application is based on the actual costs of new power plants and upgrades, as well as the 11.25% return on equity rate recommended by outside consultants. He said that maximum profit margin is a limit, not a guarantee.

“Like any other business, we still must manage our business and costs to achieve a return on our investments,” he said.

The filing for higher rates could start hitting customers’ pocketbooks in the fall. It follows two recent increases for the Charlotte-based utility. In 2010, Duke sought a 7.2% increase, or $104 million, and was allowed a 5.2% increase, or $74 million. In 2012, Duke sought a 14.2% hike to raise annual revenues by $216 million. The PSC approved a 6% increase that added $93 million in new revenues.

Duke wants the extra revenue mainly to provide $673 million for the new Dan River natural gas plant in Eden, N.C.; $236 million for high-efficiency technology at its Cliffside Steam Station in Mooresboro, N.C.; $141 million for safety and security measures at the Oconee Nuclear Station near Seneca; and $135 million for upgrades at the McGuire Nuclear Station in Mecklenburg County, N.C.

Knapp made the comment hours before the S.C. Public Service Commission’s public hearing on the request at Spartanburg Community College, the first in a series of hearings also set in Greenville, Anderson and Columbia.

The PSC takes up the increase in Columbia starting July 31.

The schedule for the remaining hearings that start at 6 p.m.:

• June 24, Greenville County Council Chambers, 301 University Ridge, Suite 2400, Greenville.
• June 27, Anderson Civic Center, Ballrooms A&B, 3027 MLK Jr. Blvd., Anderson.
• Aug. 1, Public Service Commission, 101 Executive Center Drive, Columbia.

http://www.gsabusiness.com/news/48074-small-business-chamber-opposes-duke-rate-hike

Public Hearing on Duke Energy's Proposed Rate Hike Tonight

Public hearings on Duke Energy's proposed average 15.1% electric rate hike start tonight in Spartanburg. That hearing will start at 6 PM at the Tracy Gaines Building (auditorium) located at 800 Brisack Road, Spartanburg.

Attend the hearing and let the SC Public Service Commission know how you feel about the rate hike. The SC Small Business Chamber is intervening in the rate case to oppose the rate increase. More on that later.