Pimping cheap power while raising our rates:
On Tuesday, Duke named John Fremstad of Orlando, Fla., to head its data-center recruiting efforts. The program has been an enormous success in North Carolina, where Duke (NYSE:DUK) has been a major player in closing 15 data-center deals.
I'm not sure squandering our resources should be described as an "enormous success", and I'm pretty sure other residential customers would agree with me:
Excluding fuel costs, which are virtually equal for all customer classes, average amount paid per kilowatt hour by Duke Energy's data center customers: 2.45 cents
By its residential customers: 6.74 cents
By its small business customers: 7.64 cents
Under this pricing system, if residential customers use 30% of Duke Energy's electricity for 8,759 hours of the year but 60% for one peak hour, percentage they would pay of the company's total production costs: 60
If data centers and other consistently heavy power consumers use an average of 30% of Duke Energy's electricity for 8,759 hours of the year but 20% for one peak hour, percentage they would pay of the company's total production costs: 20
For those who haven't been keeping up with DAG McCrory's power brokers, we are currently saddled with a previously outlawed process known as CWIP (Construction Work In Progress), which allows utilities to seek residential rate increases to cover power plant construction costs as they're being built. Keep that in mind while reading this:
Duke Energy plans to increase its system capacity to meet the growth in customer demand.
Duke Energy is proceeding with plans to apply for a combined Construction and Operating License to build a new 2,234 MW nuclear facility to meet future customer load demand. The new facility is scheduled to be online in June 2016 (1,117MW) and January 2017 (1,117MW).
The costs for this nuke plant are likely to exceed the $12 billion mark, maybe by a lot. And considering the NCUC is being taken over by Duke Energy pod people, just who do you think will pick up that tab?