Progress Energy Carolinas asks for fuel factor increase

RALEIGH, N.C., June 13, 2003 — Progress Energy Carolinas has filed for an increase in the fuel rate charged to its North Carolina electricity customers. The increase is needed to meet the company’s increased cost of fuel used in the generation of electricity.

Progress Energy Carolinas is asking the North Carolina Utilities Commission (NCUC) to approve a $53.6 million, or 2.2 percent, increase in overall revenues to recover a fuel cost shortfall for the period ending March 31, 2003, and to meet expected fuel costs in the near future. The increase would take effect October 1, 2003.

The fuel rate is a regulated, direct pass-through charge on all electric consumers for the actual cost of fuel to the utility to produce electricity to meet customer usage. The N.C. Utilities Commission reviews the fuel component of Progress Energy’s rates annually. The fuel charge is separate from the company’s base rates, which have not been increased in more than a decade.

“Progress Energy Carolinas remains committed to providing reliable energy for our customers at the least possible cost,” said Skip Orser, president, energy supply for Progress Energy (NYSE: PGN – News). “Improved efficiencies at our power plants and the continued outstanding performance at our nuclear plants benefits all of our customers by keeping our costs down. The cost of electricity for Progress Energy Carolinas customers is still lower than the national average.”

The average increase would be 1.8 percent for residential customers. This translates to a $1.53 per month increase in the average monthly residential electric bill, based on 1,000 kilowatt-hours per month. The average residential customer bill would increase to $85.94 per month.

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