Progress Energy reaches compromise on rate hikes - WNCN: News, Weather

Progress Energy reaches compromise on rate hikes

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Progress Energy has reached a compromise on proposed rate hikes and the final decision is now up to the North Carolina Utilities Commission.

Back in October, Progress Energy filed a rate case with the NCUC to request an 11 percent rate increase. The request drew public outrage.

On Tuesday, Progress reached a settlement with Public Staff, the public's representative at the NCUC.

The Settlement includes a two year step-in to the total agreed upon rate increase, with rates anticipated to be effective June 1, 2013.

Year one of the settlement provides for an approximated $151.4 million increase in revenue, or a 4.7 percent average increase in rates.

Year two of the settlement provides for rates to be increased by an approximate additional $31.4 million, or a one percent average increase in rates for a total 5.7 percent increase overall.

The settlement is based upon a return on investment of 10.2 percent and a 53 percent equity component of the capital structure. A decision from the NCUC is forthcoming.

Note: Progress Energy recently merged with Duke Energy, forming the nation's largest utility company. Beginning in late April, the companies will become one entity known as Duke Energy Progress.

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