For the past several years, Wake Electric’s wholesale power costs have been declining because of lower prices for the natural gas used to generate electricity.
Unfortunately, these declining wholesale power costs have been offset by the unexpected costs of relocating coal ash at some Duke Energy power plants. The coal ash costs passed along from Duke Energy to Wake Electric, primarily in 2018 and 2019, will amount to more than $10 million.
The good news is that Wake Electric has now paid or reserved those costs from existing electric rate revenues. With those Duke Energy coal ash relocation costs behind us, the Wake Electric board of directors has approved a $2 million rate reduction for 2019. The reduction will be in two parts:
〉〉 the separate charge of $2 per month per meter for NC REPS compliance will be eliminated. While we will still have compliance costs for the NC renewable portfolio standard, those costs will be rolled into the regular kWh rate.
〉〉 the kWh charge for the residential rate will drop from 10.944 cents to 10.8 cents.
Please see the new rate schedules, after January 1, 2019, on our website for all the details.