Duke Energy Carolinas asks for first increase since ‘91

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Duke Energy Carolinas today filed requests with the Public Service Commission of South Carolina (PSC) to make several adjustments to customer bills, including an increase of 9.3 percent to general rates.

The increase would be reduced to 7.2 percent thanks to the company's plan to refund money collected from customers for past energy efficiency and demand side management (DSM) programs. The money would be returned through monthly bills over approximately five years.

The company is also proposing to reduce fuel charges in bills for 12 months. The recession is leading to lower power use, so less fuel is being burned than originally forecast.

In addition, the company is asking for a charge to pay for its new energy efficiency efforts, which were recently approved by the PSC.

"For 18 years, we've held the line on general rates in South Carolina," said Brett Carter, president of Duke Energy Carolinas. "Unfortunately, our current rates are no longer sufficient to build a cleaner, more reliable system, meet our expenses, provide a fair return to investors and maintain a strong financial position."

If all of the company's requests are approved, the average South Carolina monthly residential bill — for 1,000 kilowatt-hours of electricity — would increase to about $97.

If approved, reductions to the fuel portion of customer bills would occur October 1 through September 30, 2010. Other changes would be implemented no earlier than January 1, 2010.

The proposed increases to general rates vary by customer group. In addition to covering rising costs, the rate case is an opportunity to address rate parity among customers. Rates are designed to align - as closely as possible - the price a customer group pays with the cost to serve them. But as the customer mix and other factors change over time, some customer groups end up paying more or less than their cost of service. The new rates are designed to better align costs and prices.

Between 1991 and the end of September 2009, Duke Energy Carolinas will have invested approximately $14 billion in new power plants, power lines and equipment across the system and in pollution control equipment on some of its largest plants.

Approval of the new general rates would increase annual revenues from Duke Energy's South Carolina retail operations by approximately $133 million before consideration of the DSM balance refund.

Although the company adjusts fuel costs on an annual basis, the last general rate increase in South Carolina was in 1991. In fact, rates were actually lowered in recent years. In 2006, customers received a one-time annual rate reduction of $40 million in shared savings achieved through Duke Energy's merger with Cinergy.

Duke Energy Carolinas' South Carolina rates are currently 37 percent below the national average and about 31 percent below other utilities in the Southeast. Even with the requested increase, those rates will remain well below those averages.

Duke Energy is committed to meeting its customers' electricity needs as efficiently as possible. In 2009, the company set a cost reduction target of $100 million across the organization and froze wages for most salaried personnel. During these challenging economic times, the company has also pared back its capital spending.

"The operational efficiencies we've achieved and our strict cost controls have not been enough to offset the need for an increase, given our significant capital investment in pollution control equipment, new generation, and transmission and distribution," said Carter.

On June 1, Duke Energy launched a number of energy efficiency programs to help customers in the Carolinas save power and money. In South Carolina, the average residential customer can save about $5 a month by participating in energy conservation programs.

From programs to help qualified customers improve energy efficiency in their homes, to cash incentives for purchasing energy-efficient equipment, these programs are first steps in helping residents and businesses lower their energy bills. Other programs will enable customers to save even more by voluntarily curtailing their energy use during periods of high demand.

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Seattle Apartment Fire Caused by Overheated Power Strip

Seattle Capitol Hill Apartment Fire highlights an electrical fire from an overheated power strip, a two-alarm response by 70 firefighters, safe evacuation, displaced resident aid, and prevention tips like smoke detectors and load limits.

 

Key Points

Two-alarm early-morning blaze in Seattle traced to an overheated power strip, displacing one resident and injuring none.

✅ Origin: overheated power strip ignited nearby combustibles

✅ Response: 70 firefighters, two-alarm, rapid containment

✅ Safety: avoid overloads; inspect cords; use smoke detectors

 

An early-morning fire in Seattle’s Capitol Hill neighborhood severely damaged a three-story apartment building, displacing one resident. The blaze, which broke out around 4:34 a.m. on a Friday, drew more than 70 firefighters to the scene, as other critical sectors have implemented on-site staffing during outbreaks to maintain operations, and was later traced to an overheated power strip.

The Fire Incident

The Seattle Fire Department responded to the fire, which had started on the second floor of the building in the 1800 block of 12th Avenue. Upon arrival, crews were met with heavy smoke and flames coming from one unit. The fire quickly spread to a unit on the third floor, prompting the Seattle Fire Department to escalate their response to a two-alarm fire due to its size and the potential threat to nearby structures.

Firefighters initially attempted to contain the blaze from the exterior before they moved inside the building to fully extinguish the fire. Thankfully, the fire was contained to the two affected units, preventing the destruction of the remaining seven apartments in the building.

All residents safely evacuated the building on their own. Despite the substantial damage to the two apartments, no injuries were reported. One resident was displaced by the fire and was assisted by the Red Cross in finding temporary accommodation.

Cause of the Fire

Investigators later determined that the fire was accidental, most likely caused by an overheated electrical power strip. The power strip had reportedly ignited nearby combustible materials, sparking the flames that quickly spread throughout the unit. Although the exact details are still under investigation, the fire serves as a stark reminder of the potential risks associated with overloaded or damaged electrical equipment and how electrical safety knowledge gaps can contribute to incidents.

The Risks of Power Strips

Power strips, while essential for providing multiple outlets, can pose a serious fire hazard if used improperly, and specialized arc flash training in Vancouver underscores the importance of understanding electrical hazards across settings.

This fire in Seattle highlights the importance of maintaining electrical devices and following proper usage guidelines. According to experts, it is crucial to regularly inspect power strips for any visible damage, such as frayed cords or scorch marks, and to replace them if necessary. It's also advisable to avoid using power strips with high-power appliances like space heaters, microwaves, or refrigerators.

Impact and Community Response

The fire has raised awareness about the dangers of electrical hazards in residential buildings, especially in older apartment complexes where wiring systems may not be up to modern standards. Local authorities and fire safety experts are urging residents to review safety guidelines and ensure that their living spaces are free from potential fire hazards and to avoid dangerous stunts at dams and towers that can lead to serious injuries.

Seattle's fire department, which responded to this incident, continues to emphasize fire prevention and safety education. This event also highlights the importance of having working smoke detectors and clear escape routes in apartment buildings, and ongoing fire alarm training can improve system reliability. The Seattle Fire Department recommends that all tenants know the locations of fire exits and practice safe evacuation procedures, especially in high-rise or multi-unit buildings.

Additionally, the Red Cross has stepped in to assist the displaced resident. The organization provides temporary shelter, food, and financial aid for those affected by disasters like fires. The fire underscores the importance of having emergency preparedness plans in place and the need for immediate relief for those who lose their homes in such incidents.

The Seattle apartment fire, which displaced one resident and caused significant damage to two units, serves as a reminder of the potential dangers associated with improperly maintained or overloaded electrical devices, especially power strips, and how industry recognition, such as a utility safety award, reinforces best practices. While the cause of this fire was linked to an overheated power strip, it could have easily been prevented with regular inspections and safer practices.

As fire departments continue to respond to similar incidents, it is critical for residents to stay informed about fire safety, particularly regarding electrical equipment and outdoor hazards like safety near downed power lines in storm conditions. Awareness, proper maintenance, and following safety protocols can significantly reduce the risk of electrical fires and help protect residents from harm.

 

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Alberta sets new electricity usage record during deep freeze

Alberta Electricity Demand Record surges during a deep freeze, as AESO reports peak load in megawatts and ENMAX notes increased usage in Calgary and Edmonton, with thermostats up amid a cold snap straining power grid.

 

Key Points

It is the highest electricity peak load recorded by AESO, reflecting maximum grid usage during cold snaps.

✅ AESO reported 11,729 MW peak during the deep freeze

✅ ENMAX saw a 13 percent demand jump week over week

✅ Cold snap drove thermostats up in Calgary and Edmonton

 

Albertans are cranking up their thermostats and blasting heat into their homes at overwhelmingly high rates as the deep freeze continues across the region. 

It’s so cold that the province set a new all-time record Tuesday evening for electricity usage. 

According to the Alberta Electric System Operator (AESO), as electricity prices spike in Alberta during extreme demand, 11,729 MW of power was used around 7 p.m. Tuesday, passing the previous record set in January of last year by 31 MW.

Temperatures reached a low of -29 C in Calgary, where rising electricity bills have strained budgets, on Tuesday while Edmonton saw a low of -30 C, according to Environment Canada. Wind chill  made it feel closer to -40.

“That increase — 31 Megawatts — is sizeable and about the equivalent of a moderately sized generation facility,” said AESO communications director, Mike Deising. 

“We do see higher demand in winter because it’s cold and it’s dark and that’s really exactly what we’re seeing right now as demand goes up, people turn on their lights and turn up their furnaces,” and with the UCP scrapping the price cap earlier that’s really exactly what we’re seeing right now as demand goes up, people turn on their lights and turn up their furnaces.”

Deising adds Alberta’s electricity usage over the last year has actually been much lower than average, though experts urge Albertans to lock in rates amid expected volatility, despite more people staying home during the pandemic. 

That trend was continuing into 2021, but as Alberta's rising electricity prices draw attention, it’s expected that more records could be broken. 

“If the cold snap continues we may likely set another record (Wednesday) or (Thursday), depending on what happens with the temperatures,” he said. 

Meanwhile, ENMAX has reported an average real-time system demand of 1,400 MW for the city of Calgary. 

That amount is still a far cry from the current season record of 1,619 MW (Aug. 18, 2020), the all-time winter record of 1,653MW (Dec. 2, 2013), and the all-time summer record of 1,692 MW (Aug. 10, 2018). 

ENMAX says electricity demand has increased quite significantly over the past week — by about 13 per cent — since the cold snap set in. 

As a result, the energy company is once again rolling out its ‘Winter Wise’ campaign in an effort to encourage Calgarians to manage both electricity and natural gas use in the winter, even as a consumer price cap on power bills is enabled by new legislation.

 

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Quebec authorizes nearly 1,000 megawatts of electricity for 11 industrial projects

Quebec Large-Scale Power Connections allocate 956 MW via Hydro-Québec to battery, bioenergy, and green hydrogen projects, including Northvolt and data centers, advancing grid capacity, industrial electrification, and Quebec's energy transition.

 

Key Points

Allocations of 956 MW via Hydro-Québec to projects in batteries, bioenergy, and green hydrogen across Quebec.

✅ 11 projects approved, totaling 956 MW across Quebec

✅ Focus: batteries, bioenergy, green hydrogen, data centers

✅ Selection weighed grid impact, economics, environmental criteria

 

The Quebec government has unveiled the list of 11 companies whose projects were given the go-ahead for large-scale power connections of 5 megawatts or more, for a total of 956 MW, even as planned exports to New York continue to factor into supply.

Five of the selected projects relate to the battery sector, reflecting EV battery investments by Canada and Quebec, and two to the bioenergy sector.

TES Canada's plan to build a green hydrogen production plant in Shawinigan, announced on Friday, is on the list.

Hydro-Québec will also supply 5 MW or more to the future Northvolt battery plant at its facilities in Saint-Basile-le-Grand and McMasterville.

Other industrial projects selected are those of Air Liquide Canada, Ford-Ecopro CAM Canada S.E.C, Nouveau monde Graphite and Volta Energy Solutions Canada.

Bioenergy projects include Greenfield Global Québec, in Varennes, and WM Québec, in Sainte-Sophie.

There's also Duravit Canada's manufacturing project in Matane, Quebec Iron Ore's green steel project in Fermont, Côte-Nord, and Vantage Data Centers CanadaQC4's data center project in Pointe-Claire.

All projects were selected las August "according to defined analysis criteria, such as technical connection capacities and impact on the Quebec power grid operations, economic and regional development spinoffs, environmental and social impact, as well as consistency with government orientations," states the press release from the office of Pierre Fitzgibbon, Quebec's Economy, Innovation and Energy Minister.

"With energy balances tightening and the electrification of our economy on the rise, we need to choose the most promising projects and allocate available electricity wisely," said Fitzgibbon.

Cross-border capacity expansions, including the Maine transmission corridor now approved, are also shaping regional power flows.

"These 11 projects will accelerate the energy transition, while creating significant economic spinoffs throughout Quebec."

The government is continuing its analysis of other energy-intensive industrial projects to help make the transition to a greener economy, even as experts question Quebec's EV strategy in policy circles, until March 31.

 

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Texas lawmakers propose electricity market bailout after winter storm

Texas Electricity Market Bailout proposes securitization bonds and ERCOT-backed fees after Winter Storm Uri, spreading costs via ratepayer charges on power bills to stabilize generators, co-ops, and retailers and avert bankruptcies and investor flight.

 

Key Points

State plan to securitize storm debts via ERCOT fees, adding bill charges to stabilize Texas power firms.

✅ Securitization bonds finance unpaid ancillary services and energy costs

✅ ERCOT fee spreads Winter Storm Uri debts across ratepayers statewide

✅ Aims to prevent bankruptcies, preserve grid reliability, reassure investors

 

An approximately $2.5 billion plan to bail out Texas’ distressed electricity market from the financial crisis caused by Winter Storm Uri in February has been approved by the Texas House.

The legislation would impose a fee — likely for the next decade or longer — on electricity companies, which would then get passed on to residential and business customers in their power bills, even as some utilities waived certain fees earlier in the crisis.

House lawmakers sent House Bill 4492 to the Senate on Thursday after a 129-15 vote. A similar bill is advancing in the Senate.

Some of the state’s electricity providers and generators are financially underwater in the aftermath of the February power outages, which left millions without power and killed more than 100 people. Electricity companies had to buy whatever power was available at the maximum rate allowed by Texas regulations — $9,000 per megawatt hour — during the week of the storm (the average price for power in 2020 was $22 per megawatt hour). Natural gas fuel prices also spiked more than 700% during the storm.

Several companies are nearing default on their bills to the Electric Reliability Council of Texas, which manages the Texas power grid that covers most of the state and facilitates financial transactions in it.

Rural electric cooperatives were especially hard hit; Brazos Electric Power Cooperative, which supplies electricity to 1.5 million customers, filed for bankruptcy citing a $1.8 billion debt to ERCOT.

State Rep. Chris Paddie, R-Marshall, the bill’s author, said a second bailout bill will be necessary during the current legislative session for severely distressed electric cooperatives.

“This is a financial crisis, and it’s a big one,” James Schaefer, a senior managing director at Guggenheim Partners, an investment bank, told lawmakers at a House State Affairs Committee hearing in early April. He warned that more bankruptcies would cause higher costs to customers and hurt the state’s image in the eyes of investors.

“You’ve got to free the system,” Schaefer said. “It’s horrible that a bunch of folks have to pay, but it’s a system-wide failure. If you let a bunch of folks crash, it’s not a good look for your state.”

If approved by the Senate and Gov. Greg Abbott, a newly-created Texas Electric Securitization Corp. would use the money raised from the fees for bonds to help pay the companies’ debts, including costs for ancillary services, a financial product that helps ensure power is continuously generated and improve electricity reliability across the grid.

Paddie told his colleagues Wednesday that he could not yet estimate how long the new fee would be imposed, but during committee hearings lawmakers estimated it’s likely to be at least a decade. Several other bills to spread out the costs of the winter storm and consider market reforms are also moving through the Legislature.

ERCOT’s independent market monitor recommended in March that energy sold during that period be repriced at a lower rate, which would have allowed ERCOT to claw back about $4.2 billion in payments to power generators, but the Public Utility Commission declined to do so, even as a court ruling on plant obligations in emergencies drew scrutiny among market participants.

Instead, lawmakers are pushing for bailouts that several energy experts have said is needed, both to ensure distressed companies don’t pass enormous costs on to their customers and to prevent electricity investors and companies from leaving the state if it’s viewed as too risky to continue doing business.

Becky Klein, an energy consultant in Austin and former chair of the Public Utility Commission who played a key role in de-regulating Texas’ electricity market two decades ago, said during a retail electricity panel hosted by Integrate that legislation is necessary to provide “some kind of backstop during a crazy market crisis like this to show the financial market that we’re willing to provide some relief.”

Still, some lawmakers are concerned with how they will win public support, including potential voter-approved funding measures, for bills to bail out the state’s electricity market.

“I have to go back to Laredo and say, ‘I know you didn’t have electricity for several days, but now I’m going to make you pay a little more for the next 20 years,’” state Rep. Richard Peña Raymond, D-Laredo, said during an early April discussion on the plan in the House State Affairs Committee. He said he voted for the bill because it’s in the best interest of the state.

Paddie, during the same committee hearing, acknowledged that “none of us want to increase fees or taxes.” However, he said, “We have to deal with the reality set before us.”

 

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Two-thirds of the U.S. is at risk of power outages this summer

Home Energy Independence reduces electricity costs and outage risks with solar panels, EV charging, battery storage, net metering, and smart inverters, helping homeowners offset tiered rates and improve grid resilience and reliability.

 

Key Points

Home Energy Independence pairs solar, batteries, and smart EV charging to lower bills and keep power on during outages.

✅ Offset rising electricity rates via solar and net metering

✅ Add battery storage for backup power and peak shaving

✅ Optimize EV charging to avoid tiered rate penalties

 

The Department of Energy recently warned that two-thirds of the U.S. is at risk of losing power this summer. It’s an increasingly common refrain: Homeowners want to be less reliant on the aging power grid and don’t want to be at the mercy of electric utilities due to rising energy costs and dwindling faith in the power grid’s reliability.

And it makes sense. While the inflated price of eggs and butter made headlines earlier this year, electricity prices quietly increased at twice the rate of overall inflation in 2022, even as studies indicate renewables aren’t making power more expensive overall, and homeowners have taken notice. In fact, according to Aurora Solar’s Industry Snapshot, 62% expect energy prices will continue to rise.

Homeowners aren’t just frustrated that electricity is pricey when they need it, they’re also worried it won’t be available at all when they feel the most vulnerable. Nearly half (48%) of homeowners are concerned about power outages stemming from weather events, or grid imbalances from excess solar in some regions, followed closely by outages due to cyberattacks on the power grid.

These concerns around reliability and cost are creating a deep lack of confidence in the power grid. Yet, despite these growing concerns, homeowners are increasingly using electricity to displace other fuel sources.

The electrification of everything
From electric heat pumps to electric stoves and clothes dryers, homeowners are accelerating the electrification of their homes. Perhaps the most exciting example is electric vehicle (EV) adoption and the need for home charging. With major vehicle makers committing to ambitious electric vehicle targets and even going all-electric in the future, EVs are primed to make an even bigger splash in the years to come.

The by-product of this electrification movement is, of course, higher electric bills because of increased consumption. Homeowners also risk paying more for every unit of energy they use if they’re part of a tiered pricing utility structure, where energy-insecure households often pay 27% more on electricity because customers are charged different rates based on the total amount of energy they use. Many new electric vehicle owners don’t realize this until they are deep into purchasing their new vehicle, or even when they open that first electric bill after the car is in their driveway.

Sure, this electrification movement can feel counterintuitive given the power grid concerns. But it’s actually the first step toward energy independence, and emerging models like peer-to-peer energy sharing could amplify that over time.

Balancing conflicting movements
The fact is that electrification is moving forward quickly, even among homeowners who are concerned about electricity prices and power grid reliability, and about why the grid isn’t yet 100% renewable in the U.S. This has the potential to lead to even more discontent with electric utilities and growing anxiety over access to electricity in extreme situations. There is a third trend, though, that can help reconcile these two conflicting movements: the growth of solar.

The popularity of solar is likely higher than you think: Nearly 77% of homeowners either have solar panels on their homes or are interested in purchasing solar. The Aurora Solar Industry Snapshot report also showed a nearly 40% year-over-year increase in residential solar projects across the U.S. in 2022, as the country moves toward 30% power from wind and solar overall, aligning with the Solar Energy Industries Association’s (SEIA) Solar Market Insight Report, which found, “Residential solar had a record year [in 2022] with nearly 6 GWdc of installations, representing 40% growth over 2021.”

It makes sense that finding ways to tamp down—even eliminate—growing bills caused by the electrification of homes is accelerating interest in solar, as more households weigh whether residential solar is worth it for their budgets, and residential solar installers are seeing this firsthand. The link between EVs and solar is a great proof point: Almost 80% of solar professionals said EV adoption often drives new interest in solar. 

 

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B.C. Hydro doing good job managing billions in capital assets, says auditor

BC Hydro Asset Management Audit confirms disciplined oversight of dams, generators, power lines, substations, and transformers, with robust lifecycle planning, reliability metrics, and capital investment sustaining aging infrastructure and near full-capacity performance.

 

Key Points

Audit confirming BC Hydro's asset governance and lifecycle planning, ensuring safe, reliable grid infrastructure.

✅ $25B in assets; many facilities operating near full capacity.

✅ 80% of assets are dams, generators, lines, poles, substations, transformers.

✅ $2.5B invested in renewal, repair, and replacement in fiscal 2018.

 

A report by B.C.’s auditor-general says B.C. Hydro is doing a good job managing the province’s dams, generating stations and power lines, including storm response during severe weather events.

Carol Bellringer says in the audit that B.C. Hydro’s assets are valued at more than $25 billion and even though some generating facilities are more than 85 years old they continue to operate near full-capacity and can accommodate holiday demand peaks when needed.

The report says about 80 per cent of Hydro’s assets are dams, generators, power lines, poles, substations and transformers that are used to provide electrical service to B.C., where residential electricity use shifted during the pandemic.

The audit says Hydro invested almost $2.5 billion to renew, repair or replace the assets it manages during the last fiscal year, ending March 31, 2018, and, in a broader context, bill relief has been offered to only part of the province.

Bellringer’s audit doesn’t examine the $10.7 billion Site C dam project, which is currently under construction in northeast B.C. and not slated for completion until 2024.

She says the audit examined whether B.C. Hydro has the information, practices, processes and systems needed to support good asset management, at a time when other utilities are dealing with pandemic impacts on operations.

 

 

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