Duke Energy sets $233 mln North Carolina rate cut

By Jim Brumm

WILMINGTON, N.C., Oct 5 (Reuters) - Duke Energy Carolinas agreed on Friday to cut its North Carolina electric rates by $233 million a year with the biggest cut going to the state's industries.

In a late afternoon filing with the state Utilities Commission, the Duke Energy Corp (DUK.N: Quote, Profile, Research, Stock Buzz) subsidiary said it had reached an agreement with Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) and other customers to reduce rates across the board when a rate freeze begun on July 1, 2000, ends at the end of 2007.

In July, the utility had filed for a $140 million rate increase.

The Duke subsidiary, which distributes electricity in North and South Carolina, said its North Carolina industrial rates will be cut 12.7 percent.

In addition, under a renewable energy bill passed by the state General Assembly this summer, all energy taxes paid by manufacturers will be phased out over the next five years.

Duke said residential rates will be reduced 3.8 percent under the agreement while rates for general customers will be cut more than 7 percent.