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Duke Energy seeks another rate hike

Tuesday, January 31, 2012
(Updated 5:06 am)

DURHAM -- Duke Energy Carolinas is expected to file for another rate increase in the second half of the year.

The utility announced on Friday its plans to request the additional rate increase as part of a news release about the N.C. Utilities Commission's approval of an initial increase that's expected to go into effect early next month.

The increase that was approved on Friday by the commission will mean approximately $7 more per month for the typical residential North Carolina customer, according to the news release from the utility.

Betsy Allen Conway, a spokeswoman for Duke Energy, said an additional rate request is expected to be filed by the utility in the second half of 2012.

She did not have a target date for when the utility would want to see the increase in place. The timeline would be affected by the commission's review process, she said.

The utility is seeking the additional increase to primarily pay for new construction that is part of a modernization strategy started in 2009, she said.

A new natural gas plant is expected to come online this year, and the utility is also looking to pay for a new coal--fired plant, she said.

"We began a modernization strategy back in 2009 to address these issues, to ensure that we're prepared to meet those environmental regulations, (and) to ensure that we're prepared to meet the demand for our customers," Conway said.

The utility made a rate request in 1991 that resulted in an approximately 4 percent increase in rates, Conway said, and in 2007 the utility decreased its rates by about 7.6 percent over two years.

In 2009, the utility made a request for an increase of about 8 percent to be phased in over two years, which was followed by rate request for an increase of 7.21 percent that is expected to go into effect early February.

She said the additional rate request will conclude requests made to help cover costs related to the modernization plan.

"That'll bring the two new plants into service, they'll be serving customers, and at this point, that would conclude the request for the plant, the infrastructure, the major components of the modernization strategy," she said.

Accompanying Photos

File photo (Associated Press)

Photo Caption: Duke Energy corporate headquarters in a Charlotte.

Comments

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R Lake

January 31, 2012 - 6:13 am EST

Y isnt Duke Energy, A FOR PROFIT CO., using it's profits to fund NEW BUILDS AND EXPANTIONS? How about taking those profits and puting them to the rate increse and not giving them to profit takers. The utility co. in Cal. did the same thing. Thy funded the overhall on the backs of thare users. Thy had not pland for the 25 yr. need of the overhalls. Thy had not saved one dime for this work. But paid out handsomely to its investers for all those yrs. More power to the occupiers. The people most hert buy this will be , whats left of the few middle cass and the down right poor,

northoftheboro

January 31, 2012 - 6:26 am EST

Many can blame Duke Energy all they want, but I fault radical environmentalists and their allies in the Obama Administration and the Democratic lawmakers in Raleigh. For 19 years, Duke Energy did not raise its rates on customers, but that all changed in 2009. After assuming power in that year, President Obama, Governor Perdue, and Democratic members of Congress and our state legislature have enacted laws that have pushed the unsustainable "green energy" agenda that has been unable to supply electricity that keeps pace with our growing demand for power. The result is Duke Energy's need to raise power rates in 2009, 2010, and this most recent rate increase, that hits American consumers in the wallet as hard as Obama's high gas prices ($3.43 compared to $1.68 when Bush left office). Duke Energy has tried to keep energy rates in check with attempts to build new power plants and increase output at its exisiting facilities, but environmentalists have sued to stop this necessary means of adding power to the overwhelmed supply. We can expect more of the same with the Obama Administration's restrictions on energy supplies with his denial of oil drilling in our petroleum-abundant areas of Alaska, the Gulf of Mexico, and other oil-rich regions in our nation. Governor Perdue and the Obama executive branch have ensured that no natural gas is be to explored off the N.C. coast and other prospective areas. Likewise, coal production has been drastically reduced in West Virginia and other mining regions of America under Obama's watch. Recently, environmentalists have now targeted fracking it their attempts to stop oil and natural gas drilling in our nation, again stopping a cost-cutting measure that would alleviate the financial burden on consumers. All of this has occurred while Obama spent $2 billion of our tax dollars on a crony capitialist venue with left-wing political supporter and fundraiser, billionaire George Soros, to help Brazil drill for oil off its shores and sell oil to China; billions in tax dollars given in the form of loans and grants to failed green energy and job-killing experiments like Solyndra and other bankrupt green companies that are only now being exposed; and let's not forget Obama's denial of the Keystone Pipeline deal with Canada that would have employed 20,000 Americans and brought instant relief to American motorists, consumers, and energy customers with lower rates and energy prices. So the next time you see a driver with an Obama or Sierra Club bumper sticker, be sure to thank them for the sky-high gas prices and power bills that they have made possible with their "eco-friendly" and socialist energy policies.

Bilbo

January 31, 2012 - 7:42 am EST

...yep..more tea-partier drivel here...keep on drinking the kool-aid...luckily..most folk will recognize that your statements are just more ditto-head talking points..with not one piece of information based in fact...the jobs would be temporary at best..probably most going to Canadians anyway....and speculators drive fuel prices..not the president....so if I see you driving down the way with your Newtie or Paul bumper sticker...I'll wave and then laugh at your foolishness!!!....heck..I already am!!!....LOL!!...

itsjustron

January 31, 2012 - 8:49 am EST

be careful what you ask for, I can provide REGULATORY links that support what northoftheboro has stated.. mostly (he did embelish a bit) .. Not that I agree with all of it... Dont assume just because you dont agree, it doesnt contain some truth... and while the EPA begins to put Fracking in its sight, I believe it to be a good thing (for that industry anyway).. I do not agree with the allof the EPA regs, I work with them on a daily basis.

Waldo Leidecker

January 31, 2012 - 12:01 pm EST

God, what an idiot. You're obviously a proud member of the Republinazi Party since your only "redeeming quality" is intellectual arthritis. Greed is greed pal.

itsjustron

January 31, 2012 - 1:29 pm EST

And you did Such a great job at invalidating any claim he had made! Way to go! I suppose arthritis would be better chosen, over say, amputation.

record2009

January 31, 2012 - 8:03 am EST

While Duke wants to increase the charges, why don't they consider increasing the amount they refund to customers who have a load control on their homes? The refund has not increased in years while their rate increases go through. Every time that Duke requests a rate increase they should also increase the load control refund by the same percentage rate to keep things equal. Currently, the small refund from using load control does not equal their rate increases. It is a two way street. They make you think that you are getting something back from them, while they continue to ensure that the load control refund is paid back to them through rate increases. The load control refund program is fast becoming a joke. There is no incentive to join the load control program. I am debating whether to continue with the program and suffer with extreme high summer temperatures or cancel the load control program and have a cool home all summer long.

EdinNC

January 31, 2012 - 10:25 am EST

But it's great to have that option, isn't it? CHP stopped that option years ago. So we in High Point should be complaining, not you.

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