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Progress Energy reaches deal on rate increase

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WILMINGTON, NC (WWAY) -- It looks like power rates are going up for a lot of people in southeastern North Carolina.

Progress Energy Carolinas says it has reached an agreement with the North Carolina Utilities Commission Public Staff to raise its rates as early as this summer.

The power company says under the terms of the settlement, the net increase to customers would be $151.4 million the first year and $183 million the second year, or an average increase of 5.7 percent for all customers by the second year.

The increase in year two accounts for $31.4 million in costs associated with the ongoing construction of new natural gas combined-cycle generation at the Sutton Plant in Wilmington. Progress Energy has has requested the new rates go into effect June 1.

Progress Energy originally requested an average increase in retail revenues of 11 percent, or $359 million.

In a news release, Progress Energy outlined several "Major Components" of the deal, including:

-The settlement includes a return on equity (ROE) of 10.2 percent. Progress Energy Carolinas had originally requested 11.25 percent.
-The settlement includes a capital structure of 53 percent equity and 47 percent debt. The company had requested a 55.4 percent equity component.
-Progress Energy will contribute an additional $20 million to help low income customers in North Carolina pay their energy bills and to provide training that improves worker access to jobs and increases the quality of the workforce. The company will be allowed to reduce its cost of removal liability by $20 million.
-The settlement also includes support for the company's proposed nuclear levelization accounting and for a new coal inventory rider allowing the company to recover carrying costs on coal inventory levels above those included in base rates.

The company says some issues are still unresolved, and will be decided by the North Carolina Utilities Commission, including:

-The allocation of the overall rate increase among customer classes (i.e. residential, commercial and industrial)
-The company's change to a single coincident peak cost allocation factor
-The industrial economic recovery rider proposed by the company
-Resolution of the deferral request for combined cycle units at the Smith Complex in Richmond County (currently pending in another docket)

The Utilities Commission is conducting hearings around the state, including one in Wilmington last month, to get public input on the rate increase proposal. The commission will hold a hearing in Raleigh March 18 to consider the settlement and the other unresolved issues.

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5.7 % Increse

If you think a 5.7% increase is bad, you should see what happenened with Pluris [sewer provider in Sneads Ferry].
Pluris received a 100% increase in the monthly rate to resident users. How could the NC Utilities Commission allow a 100% increase?

For you "Hope and Change" voters out there...

this is just the tip of the iceberg. But hey...there's a good chance you're getting subsidies up the wazoo...thanks to us who pay the bills.

I hope the shareholders of Duke Energy are happy "their" company is on the hook for the $10 Million line of credit the Democrat National Party needed for their convention in Charlotte. Think twice before you vote next time.

Rate Increase from Progress Energy

Goodbye coal,hello to higher energy costs. Look for rates to eventually settle out at about 20% above what has been enjoyed in the past.

5.7 i% i got 1.5%

It just dont make sence , that progress gets a 5.7 % raise on there bills for peopel to pay ,were people like me who are on SSD got a 1.5% on our monthly check,,, , i live in a moble home and its 16x80, its a 2001fleetwood ,,, so why was my bill for last month $233.00, there is a streetlight in front of my place ,, it went out last sept and my power went out to ,,, and thay said im not paying for it ,,, i said ok who is and show me who is paying for it ,, i get no answer's from them or were i live ,,, and i make $900 a month ,,, boy its going to be very very hot at my place ,,tis summer. i should just sell it , but im going to find out frst ,,,, on who is paying that street light bill or who should be payiung for it not me anymore ,, i need to find me help on this matter ,so were do i tune toand who ,,, not progress thay havent help me in 8 yrs !!

How's that HOPE and CHANGE

How's that HOPE and CHANGE thing working out for yaw?? The switch from "coal" to natural gas was bound to cost the consumer.

Natural gas is cheaper you

Natural gas is cheaper you idiot. The "switch" is a decision based on free market capitalism and has nothing to do with the president or congress. Natural gas cost less to capture, less maintanence and is cleaner. Coal now costs more to use than natural gas. Sheesh... maybe read or research a little before stating such nonsense???

SO, WHAT ELSE IS NEW?

SO, WHAT ELSE IS NEW? ECONOMYS TIGHT, SO EVERYTHING GOES UP. A PERSON CAN'T AFFORD TO BUY EXTRAS BECAUSE IT TAKES ALL THEY MAKE TO PAY BILLS.