In its annual fuel charge adjustment proceeding, Duke Energy is seeking approval from the NC Utilities Commission to pass its fuel and fuel-related costs on to its customers.
The North Carolina Sustainable Energy Association (NCSEA) has asked the NC Utilities Commission to encourage Duke Energy to develop and implement a natural gas hedging strategy in the next year. NCSEA filed a post-hearing brief on July 3.
Currently, Duke Energy has hedging strategies for coal and nuclear fuel, including the use of longer-term contracts. Hedging helps to ensure that the volatile prices for these fuels do not result in rate spikes for retail customers.
At the moment, Duke does not have a natural gas hedging strategy (Progress Energy does). This is in large part because of Duke’s limited use of natural gas as a fuel in the past. But Duke is now going to begin using much more natural gas in a predictable manner.
Consequently, NCSEA is requesting that Duke Energy implement a natural gas hedging strategy as part of its “efficient and economic operations.”
To download a copy of NCSEA's post-hearing brief, click here.