T-01 — Utility Gas Procurement Monitor · Electric Utilities Vertical
Monthly actual gas procurement costs for Duke Energy Carolinas & Progress vs comparable NC/SC utilities, benchmarked against Henry Hub spot. Source: FERC Form 923, Schedule 2. January 2017 – December 2024. This analysis underpins expert witness testimony filed before the North Carolina Utilities Commission.
Duke Avg Cost · 8yr
$5.15
/MMBtu · 2017–2024
Peer Avg Cost · 8yr
$4.81
/MMBtu · NC & SC utilities
Duke Premium Over Peers
+$0.34
/MMBtu avg · 54 of 96 months higher
Duke Basis Excess vs Peers
+$0.55
/MMBtu above HH · vs peers $1.39
May 2022 — Worst single month: Duke paid $15.37/MMBtu while peer utilities averaged $7.54/MMBtu — a $7.83/MMBtu overpayment in a single month. January 2018: Duke $13.17 vs peers $8.80 (+$4.37). These procurement failures translate directly to ratepayer cost recovery in rate cases.
What this data measures
The values shown are Duke Energy's and peers' actual blended gas procurement costs derived from FERC Form 923, Schedule 2 filings — not spot market prices or national averages. This represents what ratepayers actually fund through fuel cost recovery mechanisms in rates. The Henry Hub series is the implied benchmark (Duke cost minus Duke basis).
Basis differential significance
Duke's average basis above Henry Hub ($1.95/MMBtu) exceeded the peer average ($1.39/MMBtu) in 67 of 96 months. This persistent basis premium reflects Duke's pipeline transportation cost exposure, supply contract structure, and geographic delivery point risk — all factors that are directly addressable in IRP and rate case proceedings.
Commission proceeding relevance
The $0.34/MMBtu average premium Duke paid above peers over 8 years represents a quantifiable ratepayer burden. Applied to Duke's annual gas burn (billions of MMBtu), the aggregate cost differential is material. This methodology — FERC Form 923 data benchmarked against regional peers — has been filed as formal expert witness testimony before the North Carolina Utilities Commission.
Methodology & Data Sources
Procurement cost data: Monthly actual gas procurement costs for Duke Energy Carolinas and Duke Energy Progress (combined) and comparable NC/SC utilities, derived from FERC Form 923, Schedule 2 filings. Values expressed in $/MMBtu. Basis differential: Each utility's monthly procurement cost minus the implied Henry Hub spot price — isolating the transportation, geographic, and procurement-strategy premium above the benchmark. Peer comparison group: Investor-owned utilities operating in North Carolina and South Carolina subject to the same regional market conditions. Period: January 2017 through December 2024 (96 months). Commission use: This analysis underpins expert witness testimony filed in a docketed proceeding before the North Carolina Utilities Commission involving Duke Energy's Consolidated Carbon Plan.
EnergyVeritas provides commissioned research, data reports, and testimony data support benchmarking utility gas procurement performance against regional peers using FERC Form 923 data — formatted for commission submission in any U.S. state.