Dan Crawford: Why Is the NC Utilities Commission allowing Duke Energy to rely on expensive, unreliable fossil fuels while we pay the bill?

If you have a bad day at work, do you storm into your boss’s office and demand a raise? This is what Duke is doing.

Earlier this month, Duke Energy Carolinas asked for the largest rate increase for fuel costs in its history — 16.6% by next January. Duke Energy Progress has also begun the process of hearings for general rate increases — another 16% over three years, in addition to the 9.6% increase in fuel cost charges it got last year. That follows another request in January by Duke Energy Carolinas for a nearly 18% increase over three years for some residential customers, with hearings to follow.

Duke says it paid about $1 billion more in fuel costs last year than it was able to recover from its customers. “Fuel costs to generate electricity have more than tripled over the last year, which is a challenge faced by energy providers across the country,” said Kendal Bowman, Duke Energy’s North Carolina president. The utility acknowledges that most of the rise in its fuel costs came from methane, a fossil fuel gas (“natural gas”).

All of this is happening while Duke Energy continues to move forward on its proposed Carbon Plan that calls for building more methane-fired power plants. The underlying law (HB 951) requires Duke to use the least costly and most reliable source of energy generation.

When you consider Duke’s historic rate hike requests and the Christmas blackout — tied to failure by its coal and gas plants — we are getting neither least cost nor most reliable service from Duke’s reliance on fossil fuels.

Methane gas now accounts for more than half of Duke’s costs for fuel, and its prices have become increasingly volatile. At the same time, renewable clean energy with battery backup continues to prove itself in study after study, including one commissioned by Duke, as lower-cost and more reliable. All of this shines a bright spotlight on the challenge persistently posed by advocates of clean, renewable energy: Why are North Carolina regulators allowing Duke to continue expanding its reliance on burning methane gas, instead of committing to an aggressive buildout of solar, wind and battery storage?

Duke Energy’s increasing reliance on methane gas is about to bite ratepayers in their pocketbooks. The N.C. Utilities Commission should act on all of this as we move forward with the Carbon Plan.

There are hearings around the state about the requested rate hike by Duke Energy Progress (and a virtual option next month). Customers can also file written statements with the Commission here.

The people of North Carolina should let the Utilities Commission know we would like a lower-cost, more reliable, cleaner plan to provide electricity for our state, rather than continuing to reward Duke for poor performance and its reliance on expensive, dirty fuels.