RALEIGH, N.C., Sept. 25 /PRNewswire-FirstCall/ -- The N.C. Utilities Commission (NCUC) has approved a plan to spread recovery of higher fuel charges in electricity rates over three years to reduce the effect on customers.
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The approved increase takes effect Oct. 1 and reflects a previously announced agreement among Progress Energy Carolinas, an association of large energy users and the North Carolina Utilities Commission Public Staff. The average increase will be about 5.4 percent for residential customers, 6.6 percent for commercial customers and 8.3 percent for industrial customers. Progress Energy Carolinas initially sought a larger increase to recoup expenses of fuel used in electricity generation for more than 1.2 million homes and businesses in North Carolina.
For residential customers using 1,000 kilowatt-hours of electricity, the monthly price will rise from $90.62 to $95.56.
Without the three-year phase-in, the average increase would have been approximately 8.9 percent for residential customers, 10.9 percent for commercial customers and 13.8 percent for industrial customers.
"We know that any increase is unwelcome by customers," said Bill Johnson, president and chief operating officer for Progress Energy. "The change reflects increases in the price paid for fuel used to generate electricity reliably for our customers. The costs of natural gas and coal, in particular, have driven up overall fuel prices dramatically in recent years.
"While we cannot control the global issues that affect fuel prices, we do work to ensure that we're using fuel as efficiently as possible on behalf of our customers," Johnson said. "Our diverse mix of power plants helps to protect customers from higher volatility in the price or supply of any single fuel source. That helps keep overall electric rates as stable as possible."
Progress Energy Carolinas does not make a profit from the increase. The fuel rate is reviewed and adjusted annually by the N.C. Utilities Commission to reflect the actual cost of fuel the utility uses to produce electricity to meet customer electricity demand. The fuel charge is part of the total rate, but is separate from the base rates. Progress Energy Carolinas has not requested a base rate increase since 1988.
Given higher energy costs, Progress Energy offers these suggestions to help customers keep their electric costs down:
- Set the air conditioning system thermostat to the highest comfortable
setting in warm months and the lowest comfortable setting in cold
months.
- Make monthly inspections of HVAC system filters and clean or replace
them when needed.
- Reduce the temperature setting on the electric water heater to 120
degrees.
Customers can find much more information on using energy wisely, and they can conduct a free online home energy check, by visiting http://www.progress-energy.com/.
In addition, some customers may qualify for assistance through Progress Energy Carolinas' Energy Neighbor Fund (formerly known as Project Share). Customers may contact the Customer Service Center at (800) 452-2777 for more information. The Energy Neighbor Fund provides assistance to residential customers whose income is at or below 150 percent of the federal poverty level and who are experiencing a heating- or cooling-related crisis. The N.C. Division of Social Services determines customer eligibility.
The Energy Neighbor Fund program is maintained through voluntary contributions from employees of Progress Energy subsidiaries, shareholders, customers, civic organizations, churches and the Progress Energy Foundation, which provided $150,000 in matching funds in 2005. Since it began in 1982, the program has provided more than $15 million to families in need who live in the Progress Energy Carolinas service area.
Progress Energy , headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 23,000 megawatts of generation capacity and $10 billion in annual revenues. The company's holdings include two electric utilities serving approximately 3 million customers in North Carolina, South Carolina and Florida. Progress Energy also includes energy marketing and other nonregulated operations. Progress Energy is the 2006 recipient of the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence. Progress Energy was the 2005 recipient of the prestigious J.D. Power and Associates Founder's Award for dedication, commitment and sustained improvement in customer service. For more information about Progress Energy, visit the company's Web site at http://www.progress-energy.com/.
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