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.
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