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.

A present for small businesses

If you’re small business pays South Carolina Electric and Gas (SCE&G) for electricity, your holiday gift arrived yesterday. 

Back in June SCE&G had filed for a 6.6% average general electricity rate increase.  As I have done numerous times I intervened as an individual in the process to argue against increasing rates. 

You might remember the controversy I caused in revealing that included in the justification of the rate hike request was the cost of Zumba classes for SCE&G employees and expensive alcohol and dinners for SCANA board members.  To read this information and an explanation of how the regulatory process works, click here.

Now for your gift.

Yesterday the SC Public Service Commission approved a Memorandum of Understanding between SCE&G and most of the intervenors in the company’s rate case.  The net impact to small businesses will be only a 0.08% increase in electric rates.  The agreement also provides for no other general SCE&G electric rate increase until January 1, 2015. 

SCE&G will have a net revenue increase of $32 million or 1.38%.  The significant decrease from the original proposal was due to several factors.  The agreement moved-up an anticipated decrease in fuel costs, the company’s rate of return on equity was reduced from the requested 10.95% to 10.25%, and the Office of Regulatory Staff struck out $1.4 million in unallowable company expenses.

Residential, medium size businesses and large businesses will also benefit from the settlement.  The net rate increases for residential customers will be 1.8%, 0.63% for medium size businesses and 1.67% for large businesses.

This is very good news and I am very appreciative of the dedicated efforts of the Office of Regulatory Staff (ORS), which is responsible for making sure consumers and power companies are both treated fairly in the regulatory process.  ORS worked with all the intervenors to craft this very favorable agreement for small businesses and the other groups. 

Happy Holidays!