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

Progress Energy reaches compromise on rate hikes

Posted: Updated:

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.

Powered by WorldNow

1205 Front St., Raleigh
N.C., 27609

Telephone: 919.836.1717
Fax: 919.836.1687

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.