By Molly Parker

Facing a largely unresponsive public, Duke Energy Corp. is asking the state’s utility commission for permission to roll out an unprecedented conservation program in South Carolina that would require customers to opt out of the energy savings plan as opposed to current programs where customers must voluntarily sign up.

Duke’s proposal also could rewrite the business model in South Carolina for investor-owned utilities, allowing the company on a grand scale to pass energy conservation costs to ratepayers.

“It would redefine how energy efficiency is delivered in South Carolina,” said Tom Williams, Duke Energy’s director of energy policy for communications. “While the rates would go up to pay for the programs, (customer) bills would go down as they use less energy and our carbon footprint goes down.”

All the utility companies in South Carolina offer efficiency programs for which customers can voluntarily sign up. But participation has been minimal.

Charlotte-based Duke serves about 2.3 million customers in the Carolinas, but only about 220,000 residential customers have signed up for one of their voluntary energy-saving plans that would, for instance, cycle air conditioners or water heaters off during peak demand times.  

Duke has filed requests with state utility commissions in North Carolina, South Carolina and Indiana to approve its so-called “save-a-watt” conservation program, which, if approved could mean retiring nearly 800 megawatts of energy produced by old coal plants, the company said. Customers not wanting to participate would have to notify the company. 

Under Duke’s plan, the utility would be allowed to reap the financial benefits of the program similar to the way it can currently seek rate increases to recoup costs for the construction of new power plants. The company estimates the cost of this conservation program would be roughly 10% below that of building new plants to meet increasing demand in fast-growing areas like Charlotte, Rock Hill and Greenville.

Customers would pay for the cost of the program through a “rider” fee attached to power bills that would be adjusted annually depending on the actual cost of the program and realized energy savings. The average customer, Duke says, would see a rate increase of about 4% of their total bill within the fourth year of the program, but customers’ power bills, because they’re using less energy, would drop about 12%.

Current load control programs in the Carolinas allow Duke to save about 700 megawatt hours in the summer through measures such as cycling a small number of customers’ air conditioners off during the hottest days.