Progress Energy rates to go up in December
Posted November 15, 2011
Raleigh, N.C. — Progress Energy customers will see higher electric bills starting next month, when the Raleigh-based utility will raise its residential rates by about 3.7 percent, officials said Tuesday.
The increase, which was recently approved by the state Utilities Commission, will raise the monthly bill of a residential customer using 1,000 kilowatt-hours by $3.81, officials said. Even with the increase, the average price is less than it was in 2008, they said, noting that Progress dropped its rates in each of the last two years.
“We know every dollar counts, particularly for our customers who are struggling in this difficult economy,” Lloyd Yates, chief executive and president of Progress Energy Carolinas, said in a statement. "We continue to focus on keeping electricity affordable, reliable and environmentally sound for the households and businesses that depend on us.”
The bill for a typical commercial customer will go up by 4 percent, and the increase for a typical industrial customer will be 3.4 percent.
The rate increase reflects higher costs of power plant fuel and energy-efficiency programs, officials said.
The fuel portion of the company’s rates is adjusted annually by the Utilities Commission to reflect the actual cost of fuel the utility uses to produce electricity to meet customer demand. By law, Progress Energy does not make a profit from the fuel charge.
The company also seeks every year to recover the costs of implementing programs designed to help reduce energy consumption and save customers money on their energy bills, as well as the portion in customer rates that pays for renewable energy investments.
Progress Energy serves 1.5 million customers, including 1.3 million in North Carolina.