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NEWS

Power bill could grow more than 13 percent

Wednesday, June 3, 2009
(Updated 11:48 am)

Duke Energy said Tuesday it wants a big raise in electricity rates at a time when many customers find it hard to pay their bills.

The Charlotte-based energy company said it has asked the N.C. Utilities Commission to increase its base rates by an average of 12.6 percent.

If the commission approves the full request, the average residential bill would jump about 13.5 percent, an increase from $82 to $93 a month.

Rates for other customer categories would rise by varying amounts.

“We recognize that this is a challenging time to ask customers to pay more for electricity, so we didn’t make this decision lightly,” said Brett Carter, president of Duke Energy Carolinas. “If we didn’t need it, we wouldn’t ask for it.” 

If approved, the increase would take effect no sooner than Jan. 1.

Carter said it would be Duke Energy’s first increase in general rates since 1991. However, the company can pass along increases in fuel costs to customers on an annual basis.

A utilities commission official said Tuesday that Duke Energy’s residential customers would likely see rates go up about 5 percent in September to cover higher fuel costs.

Tuesday’s rate request comes at a time when emergency assistance officials across the state report that an increasing number of people, because of the severe recession, have been unable to pay their power bills.

The size of Duke Energy’s request took some of them by surprise.

“That just shocks me,” said Craig Thomas, executive director of Mary’s House in Greensboro, one of several  agencies that helps with emergency assistance. “Not 3 percent, but 13 percent. Good God almighty.”

Thomas said the city has seen more than a 100 percent increase in requests for emergency assistance over the past year.

“I don’t want Duke Energy to go broke,” Thomas said, “but they have to recognize how desperate people are with these current rates.”

While the rate request may seem high to some, those who monitor such things say the amount is in keeping with national trends.

“Across the board, we are seeing rate increases for various reasons,” said Rob Thormeyer, a spokesman for the National Association of Regulatory Utility Commissioners in Washington.

 “The utilities may not get what they want but rates are going up.”

In 1991, Duke Energy asked the utilites commission for a 9.2 percent increase in its base rate, but got only a 4.1 percent increase.

“That is not necessarily an indicator how this case will turn out,” said James McLawhorn, an official with the N.C. Utilities Commission Public Staff, the commission’s consumer advocate arm. “Every case is different.” 

McLawhorn said he had not read the Duke Energy request.

Duke Energy officials said that if the commission approves its request, annual revenues from North Carolina operations would increase by about $496 million.

The company said adjusting its base rate, which covers everything except fuel costs, would allow it to realign its expenses with the price it charges customers.

Since 2006, Carter said, the company has invested approximately $4.8 billion for pollution control equipment for some of its largest plants, new power lines and equipment across the system and new plant construction.

He said the company’s rates in North Carolina are 31 percent below the national average and about 24 percent other utilites in the Southeast.

On Monday, Carter said, the company launched a number of energy efficiency programs to help customers save power and money, adding that the average residential user can save about $5 a month by participating. 

Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com

Accompanying Photos

File photo (News & Record)

Comments

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booBORO

June 2, 2009 - 12:39 pm EDT

They should just cut every employees wages .05 %

greywolf

June 2, 2009 - 7:22 pm EDT

Oh, please, booberry... Don't cut the rank and file employees wages at all. Cut the executive pay 50%.

colonel570

June 2, 2009 - 12:39 pm EDT

Duke Energy is a monopoly, and greed driven. Deny the rate increase!

Billy

June 2, 2009 - 1:15 pm EDT

Can't keep it up people. Duke Energy is not hurting, look at their books, how much do the powers at be make? I think everybody is in for rate cuts in the future, this way of life can't be sustained. We're already a 3rd world country in our health care system. 37th on the list. Time for a new future...

truth

June 2, 2009 - 1:24 pm EDT

As a stockholder, I can tell you that Duke Energy pays me dividends at every opportunity. However, I also get copies of their executive's salaries and they are jaw-dropping.

Cut exec pay to no more than 1 million a year (including bonuses, stock options, etc) and then come back and negotiate a price increase.

Waldo Leidecker

June 2, 2009 - 2:15 pm EDT

What's the matter? Do all the executives at Duke Power need to make a minimum of 7 figures a year? I'm sick and tired of being screwed over by every company that thinks they can just weasel as much as they want to out of the public. With the economy the way it is these people have the gall to ask for a 12.6 % increase? They can go suck eggs.

tonymo

June 2, 2009 - 2:38 pm EDT

I don't know how many of you responders voted for Obama, but he told us during the campaign that he would bankrupt the coal companies, and that our electric rates would "skyrocket." This is just the begining folks, just wait until we get Cap and Trade!

They mentioned upgrading the "electric grid." That's so they will be able to control your thermostat from a central location. Do remember when Obama told us that we "can't continue to drive our SUVs, eat all we want, and keep our thermostats set at 72 degrees?"

Well, you voted for change!

Uhhh what

June 2, 2009 - 3:01 pm EDT

It's Obama's fault that these guys are money hungry? Just to state the obvious, he's been in office since January. Let me tell you that Duke Power's stuck their fingers in my eye for YEARS by cheating me out of my hard earned money. They're just like any other corporation.... greed driven and dishonest. Not to mention they dropped my bill drastically (from $350.00 a month down to $25.00 no matter the kph) for a full year when I caught one of their guys tampering with my meter. (Can we say illegal?)

It would be nice if their CEO's would take a small pay cut to save the family that has several children, taking care of elderly parents, or has expensive necessitated medical equipment to pay for/run.... BUT I wouldn't hold my breath.

Different day, same problem, pointing fingers in a different direction. Nothing's changed.

Deny the rate hike. These people are crazy to try to implement this during a recession.

Beanhead

June 2, 2009 - 2:46 pm EDT

Wow...what nerve to come at a time like this. Yes, Duke Power has a monopoly and we all need electricity. They need to deny the increase and come up with another creative solution. Eleven dollars is a lot of money to increase. DENY THE RATE HIKE........

nanna52

June 2, 2009 - 2:59 pm EDT

WHAT ARE THEY THINKING!!??? ALL OF THE PEOPLE THAT HAVE LOST THEIR JOBS AND CAN NOT GET A NEW ONE SUCH AS MYSELF. I HAVE BEEN OUT OF WORK SINCE 6/2008. THEY CAN NOT DO THIS. WHAT IS IT FOR ANYWAY. THE EMPLOYEES SHOULD TAKE A PAY CUT JUST LIKE OTHER AMERICANS HAVE BEEN DOING. WHAT NEXT???

greywolf

June 2, 2009 - 7:23 pm EDT

Again... don't cut rank and file pay. Cut executive pay and positions.

Paul J

June 2, 2009 - 6:29 pm EDT

Don't blame Duke Power I would get all I could also. Blame the utilities commission they regulate the rates.
Duke really only wants 6.5% but they ask for 12%. They wrote the book on this game.

greywolf

June 2, 2009 - 7:26 pm EDT

It is time to nationalize energy and health care. Both systems are long since broken... "For profit" motivation only seeks to line the pockets of the wealthy. It is time for them to feel the crunch and let the "little people" have some breathing space.

jbcarper

June 3, 2009 - 8:21 am EDT

Do an internet search for Duke Energy wind projects. You will quickly see why they need a rate increase. The bill for 'clean, renewable' energy is coming due. And it won't be small.

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