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PSNC customers could see lower rates

Posted December 16, 2008

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— PSNC Energy has filed notice with the North Carolina Utilities Commission of the utility's plan to pass on cheaper gas costs to almost 300,000 Triangle-area customers.

By law, PSNC does not make a profit on the "cost of gas" portion of its price. When costs to the utility go down, that savings is passed directly to consumers.

The company said Tuesday that it was requesting a reduction of 14 percent for the winter residential rate -- from $1.43 per therm to $1.22 per therm.

The average residential customer would see a savings of approximately $19 per month, beginning with the January bill, the company said.

PSNC expects the utilities commission to approve the request at its Dec. 29 meeting.

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  • Cajunwon Dec 16, 2008

    The "does not make a profit" comment is misleading. They don't make a profit on the ~57% of our rate which directly attributable to the cost of the raw commodity. The rest of our rate pays for other costs and shareholder profit.

  • alphabaker Dec 16, 2008

    L love good news like this. My recent PSNC bill was $223 - a little steep......

  • anne53ozzy Dec 16, 2008

    Excuse me..."Does not make a profit on the cost of gas portion of the bill"? Any company makes a profit to stay in business. There is a margin set for all consumers, based on volume and other variables. The rate goes up and down w cost of product and the forces that drive that are anybody's guess, given the condition of this market.
    Profits and made and taken....Margins need to be examined as do variables based on volume of usage and "year-round" usage parameters......Smoke and mirrors

  • Cajunwon Dec 16, 2008

    Note that the cost of the gas actually makes up over 72% of our net rate. This 'cost' includes much more than the wholesale price of Nat.Gas. The Nat.Gas component is 57.5% of our net projected Jan'09 rate. Currently projecting $0.75/therm for January but this includes gas purchased for storage during low demand periods, which were at higher prices -thus a GAAP average. The proposed decrease to $1.22/therm is significant, no doubt. But it is far from a bargain compared to other gas utility rates. Nicor of IL is one example: http://www.nicor.com/nsr/gscchart1.gif the $.65/therm noted in the chart is not fully loaded but comparing a friend's gas bill for Oct/Nov, we in NC pay almost double for the same therm usage net of all costs, fees and taxes. Wholesale Nat,Gas prices have dropped from over $13/mcf to under $7/mcf in just the last few months.

  • mstan Dec 16, 2008

    Yea, I am grateful for some good news.

  • foetine Dec 16, 2008

    Progress can't cut rates because they have to give their suits multi-million bonuses after they debt burden the company.

    I'm grateful Progress wants to give us a break instead of hiding it.

  • IzzMad2016 Dec 16, 2008

    Thanks PSNC!

  • bpjamesncsu Dec 16, 2008

    citizen782...because Progress Energy produces & distributes energy; PSNC only distributes it. I'm not trying to defend Progress, just saying they're not directly comparable. For what it's worth, our rates are significantly lower than other states I've lived in.

  • WRALblows Dec 16, 2008

    Why oh why can't Progress Energy be run like PSNC? Instead Progress gouges us in the eye and then gouges us in the other eye. Followed by a lame excuse for doing so.