Parties Reach Proposed Agreement in Duke Energy Carolinas Rate Review Request In South Carolina

Duke Energy Carolinas has reached a settlement agreement with almost all parties, including certain consumer, environmental and industrial groups in South Carolina, for its rate review request filed in January of this year – the first such request by the company since 2018, Duke Energy officials said.

If the agreement is approved by the Public Service Commission of South Carolina (PSCSC), the total increase will be approximately $240 million, about 26 percent less than the $323 million Duke Energy Carolinas requested to recover investments made to increase system diversity and reliability, enhance the customer experience and meet future energy demands for nearly 660,000 customers primarily in the Upstate region of South Carolina.  

The increase will be reduced by approximately $84 million through July 31, 2026, to result in a net increase of approximately $156 million.

The net increase reflects the company's proposal to mitigate the requested rate increase by accelerating over two years the return of excess deferred income tax benefits resulting from the Federal Tax Cuts and Jobs Act of 2017. This reduction would expire after two years.

If approved by the PSCSC, a typical residential customer using 1,000 kilowatt hours will see an increase of $12.53 per month beginning Aug. 1, 2024.

Beginning Aug. 1, 2026, residential rates would increase an additional $6.42 per month for a typical residential customer using 1,000 kilowatt hours.

Among other provisions, the agreement resolves recovery of new investments in highly efficient natural gas, nuclear, solar and hydroelectric units.

The agreement also resolves recovery of the company's continued investments in the grid, its new corporate headquarters and environmental compliance costs in this case as well as allows Duke Energy Carolinas a return on equity of 9.94 percent and an equity component of the capital structure of 51.21 percent.

It also provides – at shareholder expense – $2 million to fund a collaborative of stakeholders focused on enhancing assistance for low-income customers as well as investments in weatherization programs.

The agreement was reached with the South Carolina Office of Regulatory Staff, the South Carolina Energy Users Committee, Southern Alliance for Clean Energy, Coastal Conservation League, Vote Solar, and the South Carolina Small Business Chamber of Commerce.

While not signatories to the agreement, both Walmart and CMC Recycling don’t object to approval of the agreement.

"We are taking steps to keep pace with and anticipate the changes occurring in our state," said Mike Callahan, Duke Energy's South Carolina president. "If approved, this agreement will support our efforts to diversify and enhance our system and continue our track record of operational excellence while keeping costs to customers as low as possible."

Callahan added, "We appreciate the parties involved thoughtfully considering the needs of our customers and our ability to continue investing in our state's booming economy."

The PSCSC will conduct an evidentiary hearing beginning May 20, 2024, to review the agreement and other issues in the rate review request.

Duke Energy Carolinas, a subsidiary of Duke Energy, owns 20,700 megawatts of energy capacity, supplying electricity to 2.9 million residential, commercial and industrial customers across a 24,000-square-mile service area in North Carolina and South Carolina.

KM Fabrics Closes Deal On New Facility in Downtown Greenville

Aline Capital announced its representation of KM Fabrics in the purchase of a ±161,214 SF industrial property in Greenville, South Carolina. 

Founded in 1979 in Greenville, KM Fabrics has become one of the world's leading producers of premium velvets. 

Its drapery fabrics can be found in America's theatres, concert halls and performing arts venues, including the Peace Center in downtown Greenville.  

KM Fabrics has been operating at its current facility on the west side of Greenville since 1979, but officials said the business needed a bigger property to accommodate its continued growth.

The company turned to Chris Schweighart, who leads Aline Capital’s Industrial Division, for the expansion project.

Schweighart procured an off-market deal with Chromascape, the owner of the ±161,214 SF industrial property at 105 Wood Street. 

Financial terms weren’t disclosed.

Tourism’s Impact on Local Community Celebrated During National Travel and Tourism Week May 19-25

The Myrtle Beach Area Chamber of Commerce (MBACC) and Convention and Visitors Bureau (CVB) will join tourism destinations from across the state and country on May 19-25 to celebrate National Travel and Tourism Week (NTTW) to recognize the essential impact travel has on the livelihoods of South Carolina residents.

Noted within Myrtle Beach Area CVB’s 2023 Annual Report, released in May, are key performance indicators showcasing the Grand Strand’s strength as a travel destination, including:

* 17.6 million total visitors to the area, two-thirds of whom are repeat visitors.

* $11.95 billion in total direct visitor spending and impact, $174 million attributed to sports tourism.

* $16.4 billion in gross retail sales in Horry County.

* 3.36 million in total passengers at Myrtle Beach International Airport.

* 21 percent uptick in spending by travelers from outside the U.S. to the tune of $38.9 million.

* $32 million generated from accommodations tax, $45.7 million from tourism development fee and $58.5 million from hospitality tax.

* $167 in direct visitor spending and an additional $22 in local tax revenue generated for every dollar invested in tourism advertising.

According to the CVB, projections for travel demand in the Myrtle Beach area for summer 2024 are expected to remain above pre-pandemic levels as they did in 2023.

The forecast is supported by national indicators such as TripAdvisor’s 2024 Summer Travel Index, which reveals that 95 percent of respondents in the U.S. are planning to travel as much (51 percent) or more (44 percent) than last summer.

The index, released May 14, also ranked top domestic summer travel destinations for American travelers, placing Myrtle Beach at No. 2 behind Las Vegas. Rounding out the top 10 are Orlando, Honolulu, New York City, Chicago, Key West, Ocean City, San Diego and Boston.

Highlighting the crucial role of travel in Myrtle Beach, the City Council declared May 19-25 as Travel and Tourism Week in Myrtle Beach.

“The travel and hospitality industry generates millions in tax revenue annually, providing property tax breaks for our fulltime residents while supporting jobs and essential city services like emergency response, public services and education,” said Myrtle Beach Mayor Brenda Bethune.

Myrtle Beach Area Chamber and CVB President and CEO Karen Riordan accepted the proclamation and noted the significance of the week.

“Days after hosting our first-ever PGA TOUR event, it seems only fitting that we give credence to the power of travel,” Riordan said. “This week is a time to thank the visitors who substantially contribute to our local and state economies as well as honor our community for welcoming these guests."

Riordan added, "Without a doubt, tourism is the Grand Strand’s economic lifeblood and our livelihoods.”

On May 20, Riordan and other tourism leaders from across the state will travel to Columbia, S.C., as Gov. Henry McMaster declares Travel and Tourism Week in South Carolina.

Said Duane Parrish, director of the South Carolina Department of Parks, Recreation and Tourism (SCPRT): “Travel and tourism is a powerful driver of economic progress across the entire Palmetto State. The growing popularity of our beautiful Grand Strand showcases just how our state shines across the globe as a top destination for leisure travel, meetings and conventions, and sports tourism.”

In addition, SCPRT reports tourism-related tax collections reduce the annual tax burden for every South Carolina resident by nearly $1,000.

SCDNR to Conduct Courtesy Boat Inspections During Memorial Day Weekend

In an effort to keep people and waterways safe during the Memorial Day weekend, the S.C. Department of Natural Resources (SCDNR) Law Enforcement Division will conduct courtesy boat inspections at public boat landings around the state.

The Memorial Day holiday kicks off the summer boating season and is one of the busiest times of the year for South Carolina lakes and waterways.

SCDNR boating safety and enforcement officers will perform quick but thorough inspections for required safety equipment and proper boat and motor registrations.

Those who aren't in compliance with safety regulations or registration requirements won’t be ticketed during the complimentary inspections.

Instead, they will be given an opportunity to correct the problem before they launch their boat. SCDNR officers also will be available to answer questions and give boaters tips on how to stay safe on the water.

To report boating violations such as reckless operation or an intoxicated boat operator, call the SCDNR toll-free, 24-hour hotline at 1-800-922-5431 or dial #DNR on your cellular phone.

For a copy of South Carolina’s boating regulations, to find out about local boating safety courses, or to obtain a free float plan form, contact the SCDNR boating safety office at 1-800-277-4301 or go to http://www.dnr.sc.gov/education/boated.html.

Memorial Day weekend boat inspection locations (all inspections are from 10 a.m. to Noon):

Saturday, May 25:

Anderson County: Twin Lakes Landing, Lake Hartwell: 10 a.m. to Noon

Berkeley County: William Dennis Landing, Tail Race Canal, 10 a.m. to Noon

Charleston County: Wapoo Cut Landing, Intracoastal Waterway (ICW): 10 a.m. to Noon

Greenwood County: SC Highway 72 Landing at Break on the Lake, Lake Greenwood: 10 a.m. to Noon

Horry County: Little River Landing: 10 a.m. to Noon

Lexington County: Lake Murray Dam Landing: 10 a.m. to Noon

York County: Allison Creek Park Landing, Lake Wylie: 10 a.m. to Noon.

Sunday, May 26:

Beaufort County: Broad River Landing: 10 a.m. to Noon

Charleston County: Remley's Point, 10 a.m. to Noon

Clarendon County: Alex Harvin Landing, Lake Marion: 10 a.m. to Noon

Colleton County: Bennett's Point, 10 a.m. to Noon

Kershaw County: Clearwater Cove Landing, Lake Wateree: 10 a.m. to Noon

McCormick County: Dorn Landing, Lake Thurmond: 10 a.m. to Noon

Pickens County: South Cove Landing, Lake Keowee: 10 a.m. to Noon.

Monday, May 27:

Beaufort County: Lemon Island Boat Ramp: 10 a.m. to Noon

Charleston County: Limehouse Landing, 10 a.m. to Noon

Georgetown County: Carroll Ashmore Campbell Marine Complex Landing, 10 a.m. to Noon

Lexington County: Lake Murray Dam: 10 a.m. to Noon

Oconee County: Seneca Creek, Lake Hartwell, 10 a.m. to Noon

York County: Allison Creek Park Landing, Lake Wylie: 10 a.m. to Noon.

Allow us to tell your company's Business Narrative. Send your press release to David Dykes or for more information email [email protected]