Duke Energy announced yesterday that North Carolina regulators have approved a rate increase totaling $179 million for the utility's Tarheel customers.
The increase will be spread out over a two-year period, and is expected to increase an average customer's bill by 5.5%. For Duke, that translates to a 10.2% return-on-equity.
"We understand there is never a good time to increase rates," said Duke Energy's NC President Paul Newton in a statement. "However, we believe this approved settlement will allow us to keep the rate increase to customers as low as we reasonably can, and still recover the investments we've made to modernize our system and to ensure safe, reliable and increasingly clean electricity for the future."
As part of the agreement, the utility will contribute up to $20 million in bill subsidies for low-income customers, as well as provide workforce training. Regulators concurrently approved a $20 million write-off in removal liabilities for the company. According to Duke, its new rates remain below the national average electricity bill.
The article Regulators Approve $179 Million Duke Energy Rate Increase originally appeared on Fool.com.
Motley Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does occasionally use electricity in North Carolina. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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